Release of 28.04.2014

Telekom Austria Group subsidiary Si.mobil acquires almost 50% of auctioned Slovenian mobile spectrum for EUR 63.9 mn

The Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that the Slovenian telecoms regulator ('Agency for Communication Networks and Services') has published the results of the mobile spectrum auction today.

Si.mobil acquired 2 x 90 MHz of FDD spectrum and 1 x 45 MHz of TDD spectrum, equivalent to approximately 48% of total auctioned spectrum, for a total cost of EUR 63.9 mn.1

The combinatorial clock auction started on 3 April 2014 and was completed on 28 April 2014 after regulatory approval was granted. The three largest operators Telekom Slovenije, Si.mobil and Tusmobil participated. Please find below the results of the auction:

 NewExistingExistingExistingNewNew
Si.mobil 800 MHz 900 MHz 1800 MHz 2100 TDD 2600 FDD 2600 TDD
before / 2 x 12,5 MHz 2 x 30 MHz 5 MHz / /
after 2 x 10 MHz 2 x 15 MHz 2 x 30 MHz 25 MHz 2 x 35 MHz 25 MHz
             
Telekom Slovenije 800 MHz 900 MHz 1800 MHz 2100 TDD 2600 FDD 2600 TDD
before / 2 x 12,5 MHz 2 x 25 MHz 5 MHz / /
after 2 x 10 MHz 2 x 15 MHz 2 x 25 MHz 5 MHz 2 x 35 MHz 25 MHz
             
Tusmobil 800 MHz 900 MHz 1800 MHz 2100 TDD 2600 FDD 2600 TDD
before / 2 x 10 MHz 2 x 15 MHz / / /
after 2 x 10 MHz 2 x 5 MHz 2 x 10 MHz / / /

 

In addition, Si.mobil also owns 2 x 15 MHz of 2100 FDD spectrum acquired in 2006. 2 x 10 MHz of 1800-MHz spectrum and 2 x 5 MHz of 2100-MHz FDD spectrum remained unsold.

The new 800-MHz spectrum and the 2600-MHz spectrum licences will have a duration from mid-2014 until mid-2029. The 2100-MHz TDD spectrum licence, also valid from mid-2014, will mature in September 2021. The 900-MHz and 1800-MHz spectrum licence will be valid from January 2016 until January 2031.

Considering the existing spectrum and the planned strategy of future network investments especially in rural areas, Si.mobil focused on the acquisition of the spectrum in the 800 MHz frequency band, with moderate increases of its position in the 900-MHz and 1800-MHz bands.

Si.mobil intends to cover 50% of the Slovenian population with LTE technology already this year, and reach a population coverage of 95% within 3 years. It will thereby fulfil regulatory coverage obligations as well as the objectives of the European digital agenda concerning the coverage of so-called 'white-spots'.

The purchase price for the acquired spectrum in the total amount of EUR 63.9 mn must be paid in full within 15 days of being delivered the decision from the regulator. Telekom Austria Group will finance the spectrum acquisition via existing cash.

1 FDD = Frequency Division Duplex Uplink / Downlink, TDD = Time Division Duplex


Disclaimer for forward-looking statements:
This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.

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