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Český Mobil's tariffs to be among lowest in EuropeNew operator to offer Internet service for schools and libraries

17. August 1999

Český Mobil pledged today to considerably reduce the cost of mobile ownership and usage in the Czech Republic by offering some of the lowest mobile tariffs in Europe. Český Mobil has also committed to build the most advanced and accessible GSM wireless infrastructure of its kind in Europe: Internet- and multimedia-ready, offering new generation services made possible by the latest technology platforms. These commitments are part of Český Mobil's proposal submitted to the Czech Government for the operation of the GSM 1800 license. Český Mobil is the biding consortium of IPB, Telesystem International Wireless (TIW) and Priority Telecom, a wholly owned subsidiary of United Pan-Europe Communications (UPC). "Český Mobil's objective is to put a mobile phone into the hands of every active Czech citizen, said Mario Bertrand, President New Ventures of TIW.

Český Mobil pledged today to considerably reduce the cost of mobile ownership and usage in the Czech Republic by offering some of the lowest mobile tariffs in Europe. Český Mobil has also committed to build the most advanced and accessible GSM wireless infrastructure of its kind in Europe: Internet- and multimedia-ready, offering new generation services made possible by the latest technology platforms. These commitments are part of Český Mobil's proposal submitted to the Czech Government for the operation of the GSM 1800 license. Český Mobil is the biding consortium of IPB, Telesystem International Wireless (TIW) and Priority Telecom, a wholly owned subsidiary of United Pan-Europe Communications (UPC).

"Český Mobil's objective is to put a mobile phone into the hands of every active Czech citizen, said Mario Bertrand, President New Ventures of TIW. "Our mass-market strategy will be suppported by an equally ambitious distribution strategy with points of presence across the country making mobility not only affordable, but accessible to everyone. Already, Český Mobil has access to more than 4,000 outlets in the Czech Republic , added Mario Bertrand.

The key elements of Český Mobil's offer are as follows:
  • Aggressive network deployment: Based on our experience building and operating GSM and mobile networks in other countries, we intend to launch very rapidly after of being granted the license.
  • New generation GSM services : Internet access will enable a wide range of services, including e-banking, e-commerce, data transmission and a whole range of other digital services. Far form offering these services as an elite package to select customer groups, Český Mobil intends to mass market them to all subscribers.
  • Lifestyle packages: Cesky mobil will offer tariff packages tailored to usage and lifestyle. Different kinds of discounted tariffs will be offered in the lifestyle packages designed to cater to specific needs of identified user groups. The packages, comprised of valuable discount rates, include Family Package, Mobile Office Package and the Executive Package.
  • Free Value Added Services: Every subscription will include a wide range of value added services, such as free call forwarding, call waiting, voice mail, short message services (SMS), and unique voice recognition.
  • Friendly, Accessible Customer Care: Any Český Mobil customer, anywhere in the Czech Republic, will be able to call one toll-free number and receive friendly, 24-hour, seven-days-a-week service.


Additional benefits to the Czech Republic
in addition to its commitments related to its service offering and network deployment, Český Mobil haspledged to lead a number of related initiatives aimed at improving the quality of life and supporting technological advances in the Czech Republic. This investment is a joint contribution with the investors and partners lead by Český Mobil after being granted the license Authorization. The three main initiatives are as follows:
  • Internet Service for Schools and Libraries: Český Mobil plans on financing the entire cost of building the technological infrastructure required to provide Internet Access to more than 13,000 schools and libraries in the country.
  • R&D Centre for Wireless Multimedia: Český Mobil and its partners will create a research and development centre to develop new products and services in the field of wireless multimedia. Using local staff and researchers, the centre would keep Český Mobil at the forefront of developments in wireless, multimedia which could then be passed on to Czech consumers. As well, Czech researchers would benefit form the opportunity to develop and test solutions for communication problems. One of the key objective of the Centre will be to monitor technology developments that will move GSM and the Czech Republic towards Universal Mobile Telephone Service (UMTS).
  • Český Mobil University Chair: Český Mobil will take the lead in developing a network of Centres of Excellence at Czech universities, as well as the Český Mobil University Chair. These initiatives would help finance research projects in wireless communication, and support deserving students who wish to pursue their studies in the field.
  • Significant job creation: an independent study undertaken by the National Economic Research Associates (NERA), has evaluated the economic impact of our proposed GSM system. NERA estimates the direct and indirect employment impact of Cesky mobil's business plan on the economy at a yearly average of about 2,750 additional jobs created.


"We are confident Český Mobil has put forward the proposal which will bring the most benefits for the Czech population by considerably lowering tariffs, building the most advanced and accessible GSM wireless infrastructure of its kind in Europe as well as at improving the quality of life and supporting technological advances in the Czech Republic, " explained Jan Klacek, Chairman of Board of Directors and General Manager of IPB.

Priority Telecom is a wholly owned subsidiary of United Pan-Europe Communications (UPC), one of the leading cable operators in the Czech Republic. UPC presently owns and operates Kabel Net and has agreed to acquire Kabel Plus, subject to regulatory approval, which will give the company a total Czech Republic subscriber base of over 400,000 for its cable television, telephony and Internet services. Headquartered in Amsterdam, UPC is the most innovative broadband communications company in Europe and owns and operates one of the largest pan-European groups of broadband communication networks. UPC provides cable television, telephony, high-speed Internet access and programming services in 12 countries across Europe and in Israel. As of June 30th 1999, UPC's systems passed approximately 8.6 million homes with 5.6 million basic cable subscribers. In addition, UPC had 123,400 residential telephony lines and 12,500 business telephony lines, as well as 50,400 residential Internet subscribers and 2,300 business Internet subscribers. UPC completed an IPO in February 1999 and its shares are traded on the Amsterdam Stock Exchange ("UPC") and NASDAQ ("UPCOY").

UPC is a consolidated subsidiary of Denver based UnitedGlobalCom Inc. ("United"), ( NASDAQ : "UCOMA"). Microsoft has an interest of approximately 7.8% in UPC.

IPB is the largest private bank in the Czech Republic and at the same time the third largest bank operating in Czech Republic measured by volumes of loans, deposits and total assets. IPB´s equity amounts to 13.4 billions CZK, it serves more than 2.6 millions clients and operates over 3 millions accounts. IPB is the fastest growing financial institution in the country.

TIW is a global wireless operator. It develops, acquires, owns and operates wireless telecommunications networks in developing and developed markets throughout the world. TIW provides digital cellular services in Romania, Brazil, India and China. The Company also provides specialised mobile radio (SMR) services in the United Kingdom, France, Germany, Belgium, Spain and Portugal as well as paging services in Mexico and the Netherlands.

TIW is a member of the Canadian-based private communications group Telesystem Ltd., which manages companies which together employ 18 000 people in 30 countries. The leading telecommunications company within the Telesystem group is Teleglobe, which has revenues of over US$ 3,5 billion. The group's strong position in wireless communications is secured internationally through TIW and in Canada through Microcell Telecommunications, operator of the third national wireless licence (PCS 1900 Mhz) awarded by the Canadian government. Telesystem also created and manages Telsoft , Canada's largest venture capital fund dedicated to the software industry and manages Motion International, the second largest independent producer in Canada.