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The price comparison between Český Mobil and Orange is inaccurate and misleading

05. October 1999

Cesky mobil wishes to comment an article that appeared in the press recently showing an inaccurate comparison between its tariff structure and one form an unsuccessful competitor in the recent tender for the third mobile license in the Czech Republic. As presented in the press article, the information included in the comparison is misleading and not reflective of CM's proposal. It does not take in account the monthly tariffs, free minutes, and the fact, that CM offers no activation fees. Furthermore, obtaining a copy of CM's proposal would be contrary to the tender rules and therefore CM refuses to try and compare its proposal to the one submitted by another bidder. In allocating the license, the decision was made to use a "formula" whereas the tariff structure represented between 70 - 80% of the total number of points awarded.

Cesky mobil wishes to comment an article that appeared in the press recently showing an inaccurate comparison between its tariff structure and one form an unsuccessful competitor in the recent tender for the third mobile license in the Czech Republic.

As presented in the press article, the information included in the comparison is misleading and not reflective of CM's proposal. It does not take in account the monthly tariffs, free minutes, and the fact, that CM offers no activation fees. Furthermore, obtaining a copy of CM's proposal would be contrary to the tender rules and therefore CM refuses to try and compare its proposal to the one submitted by another bidder.

In allocating the license, the decision was made to use a "formula" whereas the tariff structure represented between 70 - 80% of the total number of points awarded. It must be added that the applicable tariffs included not only the so called T1 "low end" tariff but also another tariff called T2.

Based on the information recently published in the press, CM finished with as much as 15 points more than the second place finishers. Combined with the % weighing factor described above, this clear first place finish confirms that CM's combined tariff plan is really the cheapest.

Regardless of the inaccurate information published about CM's proposal, Czech consumers are already the winners as demonstrated by the lowering of price of the existing operators' tariff structures.

Cesky mobil is ready to sign the license

The Cesky mobil consortium is ready to sign the authorisation and the agreement for the third mobile network operation in the Czech republic. Cesky mobil expects all service and tariff specifications described in its offer to be an integral part of the license.

"The documents prepared by the Czech Telecommunications Office have over ninety pages, and so time and effort must be spent carefully studying all texts. Regardless of the extra-time required, we are ready to proceed quickly since the negotiations are now being conducted on issues of a more clerical and legal nature," said Mario Bertrand, Chairman of the Board of Cesky mobil.

Mr Bertrand adds: "We are looking forward to conclude these negotiations in a timely manner and reaching mutually satisfactory result with the Ministery of Transports and Communications. In the end, as we have said before, the winner will be the Czech consumer who will benefit form our commitments."