• Telefónica keeps the position of leading Internet service provider • The no. of xDSL connections will exceed 900,000 this year

On May 9, 2011, Telefónica launched the VDSL technology officially and offered ADSL technology users the acceleration of their Internet na doma (Home Internet) tariff, while keeping the price unchanged. The campaign Zrychlujeme (We're Accelerating), which took place last year after the launch of VDSL, was very successful. VDSL is being used by more than 18 % of clients in O2's network - totally 162,000 connections.

" We have accelerated the Internet for households by an average of 108 %, thus raising customer satisfaction. The implementation of the new technology was accompanied by higher investments into the development of the xDSL network. This year will plan to raise the investments into xDSL networks by 20 %" , says Aleš Veselý, Telefónica's Marketing Director - Households.

According to the data from the 2011 Census of Population, Houses and Apartments, there are 3.89 mln inhabited apartments in the Czech Republic. 2.2 mln of these had a computer with Internet access at the time of the census (March 2011). "We are very pleased that the biggest portion of people connects to the Internet via O2's xDSL," Aleš Veselý specifies.

*data for Q1 2012

Contacts
Hany Farghali
Spokesperson
Telefónica Czech Republic, a.s.
public.relations.cz@o2.com
tel: +420 606 02 02 02

About Telefónica Czech Republic

Telefónica Czech Republic is a major integrated operator in the Czech Republic. It is now operating almost seven million lines, both fixed and mobile, making it one of the world's leading providers of fully converged services. The organization offers the most comprehensive portfolio of voice and data services in this country. It is paying special attention to the exploitation of the growth potential, particularly in the data and Internet sector. Telefónica Czech Republic operates the largest fixed and mobile network including a 3rd generation network, CDMA (for data), and UMTS, enabling voice, data and video transmission. Telefónica Czech Republic is also a notable provider of ICT services.

About Telefónica

Telefónica is one of the world's largest telecommunications operators by market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 25 countries and has a global customer base of almost 300 million. Telefónica's growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America. Telefónica is a 100% private sector company with its shares listed in Madrid and other stock exchanges and more than 1.5 million individual shareholders.

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