Telekom Austria Group to bid for 3G mobile license in Slovakia

July 17, 2006

The Telekom Austria Group announced the participation of its wholly-owned wireless subsidiary mobilkom austria in the tender for the 3rd mobile license in the Republic of Slovakia. The minimum bid for the license is set at SKK 100 million (roughly EUR 2.5 million) and comprises both GSM and UMTS frequency bands as well as point-to-multipoint connections. The license is valid for a period of 20 years. The license will be awarded within the framework of a beauty contest. The announcement of the winner is expected 8 weeks after filing for the bid.

Boris Nemsic, CEO of the Telekom Austria Group and CEO mobilkom austria said: "Along with our current target markets in Southeast Europe, Slovakia represents an attractive option for us due to its proximity to Austria and the extremely positive economic development in recent years." Through the "Twin City" concept Vienna and Bratislava, which are roughly 60 km apart, are increasingly growing together. They will become a joint economic center in 2009 at the latest, following Slovakia's planned entry to the Eurozone and the Schengen Agreement, which will lead to the removal of border controls.

Boris Nemsic added: "In the high-price Slovakian mobile market we see favorable conditions for the market entry of a third operator."