Telekom Austria AG — M&A Activity 2003

Jan 7, 2003

News Details

Ad-hoc | 7 January 2003 08:00

Telekom Austria AG english

mobilkom austria and Vodafone Announce a Partnership Agreement Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– mobilkom austria and Vodafone Announce a Partnership Agreement Vienna, January 7, 2003 – Today Telekom Austria AG (VSE:TKA; NYSE:TKA) announced a partnership agreement between its subsidiary mobilkom austria and Vodafone (NYSE: VOD; LSE: VOD). The world’s largest mobile communications operator, with a presence in 28 countries, 17 of which are European, and the mobilkom austria group, present in four European countries, have agreed to an exclusive cooperation. The cooperation is based on the so-called “Partner Concept”, already successfully implemented with Radolinja (Finland), TDC Mobil (Denmark), MTC (Kuwait) and Radiolinja Eesti AS (Estonia). Apart from roaming products the partnership encompasses joint product development, marketing and global account management as well as procurement synergies between Vodafone and mobilkom austria group in Austria, Slovenia and Croatia. “We are entering into a partnership agreement, which will allow us to integrate into a global partner network without giving up our independence. The two operators will immediately initiate a joint strategic product development program in certain business areas, which will add to our respective strengths. For our customers, this cooperation means that they are being offered the best of both worlds,” reports Boris Nemsic, CEO mobilkom austria and COO Wireless Telekom Austria. The cooperation does not entail an equity investment by either company, both partners will continue to operate as independent companies. Heinz Sundt, CEO Telekom Austria AG stated: “For the benefit of our shareholders, this cooperation ensures that mobilkom austria will continue to provide an attractive contribution to the financial performance of the Telekom Austria Group.” More details see explanatory remarks end of ad-hoc-announcement (c)DGAP 07.01.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: “Partner Agreement” – Maximizing Advantages without Financial Involvement Thomas Geitner, Vodafone Chief Executive for Global Products & Services, highlights the advantages of the partnership for both business groups: “We enter into this cooperation, which offers advantages for Vodafone customers, shareholders and our operators, as equal partners. As we are not operating in the regions covered by the mobilkom austria group, we are removing the blank spaces on Vodafone`s map of Europe. mobilkom austria`s leadership in innovations is widely recognized which makes them a particularly valuable partner for us.” This agreement with the mobilkom austria group marks the first partnership between Vodafone and a combined group of operators. It is intended for the partnership to comprise additional regions in which the mobilkom austria group might potentially operate in the future. For Vodafone the partnership with mobilkom austria forms a bridge towards a possible further cooperation in Central and Eastern Europe. Think global, act local: Increased Cost-Effectiveness and Global Know-how Combined with Local Customer-Focus According to Nemsic, being in the position of a market-leader in Austria, the mobilkom austria group was able to choose its preferred partner through which to access a global network. “Our assets in Austria, Croatia and Slovenia with turnover and customer growth in all subsidiaries as well as the rapid know-how transfer between the group`s companies, has made it possible to achieve innovation leadership in each country. Best practice sharing and intensive exchange of know-how with Vodafone will reinforce this position in the future,” explains Nemsic. In addition to product development, mobilkom austria will also cooperate in the areas of technical platform development as well as key account management and distribution with its partner. Considerable cost savings will result not only from synergies in product development, but also from joint purchasing of hardware and software products. Eurocall Provides Favorable Rates for Calls in 26 Countries Above all, the advantages will benefit the customers – 107.5 million in the Vodafone Group and 4.3 million in the mobilkom austria group. In the future, Vodafone customers will prefer to use the networks of A1, VIPnet and Si.mobil as these will offer conditions equivalent to the Vodafone home network. That means: Global services which apply to all of the countries covered by both partners, new services and a cross-border flat rate. “We will be launching new roaming rates in the first half of 2003. With Vodafone Eurocall, we can offer our customers in Austria, Croatia and Slovenia low, transparent rates in 26 countries – basically all of Europe. In addition to that, the customer is guaranteed a high level of assistance and simplified access to services when abroad,” says Hannes Ametsreiter, responsible for Marketing, Distribution and Customer Services at mobilkom austria. mobilkom austria has the exclusive rights to the implementation and marketing of Vodafone products within its markets (with the exception of Liechtenstein). “For products which we develop together, a joint branding approach will be adopted.” says Ametsreiter. “The combination with the internationally established brand “Vodafone” will add value to our brand A1.” Contact: Hans Fruhmann Telekom Austria AG Investor Relations, Tel.: +43 (0) 590591-20917 E-mail: hans.fruhmann@telekom.at ——————————————————————————– WKN: 072000; ISIN: AT0000720008; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin, Düsseldorf, Frankfurt, München, Stuttgart, New York (ADR) 070800 Jän 03