Press Release

ONE invests 260 million euros into the fastest HSDPA network of Austria

Data transmission rates of 7.2 mbit/sec | 90 % population coverage by the end of 2008 | Most modern, energy saving equipment | focus on e-mail and music on the handset

ONE will invest a total of 260 million ? in the next two years into the fastest mobile broadband network of Austria. With the most modern equipment on the market, ONE plans to achieve an HSDPA population coverage of 90 percent by the end of 2008. The ONE HSDPA network will already enable a data transmission rate of 7.2 mbit/sec in the first quarter of 2007. The focus of mobile broadband applications has been placed on e-mail and music.

With the ?4 to 0?tariff with more than 200,000 registrations since June and the discount subsidiary YESSS!, ONE has reached the 2 million network customer threshold one year earlier than planned?, ONE CEO Jørgen Bang-Jensen summarises the outgoing year 2006. ?2006 was a highly successful year, in the course of which ONE clearly held the role of challenger on the market. However, while others speculate when and to whom ONE will be sold, we seize the occasion of this success to invest 260 million ? into the most modern and fastest HSDPA network of Austria within the next two years. ?

7.2 mbit/sec data transmission rate already starting from Q1/20
ONE furnishes its UMTS/HSDPA network with the most modern and resource-effective equipment currently available on the market. Together with the partners Ericsson (hard-/software) and Alcatel (network rollout and operation) an ambitious rollout plan is being implemented: As early as by the end of 2006 all of Vienna and several other urban areas will be provided with HSDPA. In the first quarter of 2007 the entire ONE UMTS network will be upgraded to achieve an HSDPA population coverage of more than 62 percent. From this point in time data transmission rates of up to 7.2 mbit/sec will be possible. At the end of 2008 90 percent of the Austrian population will be able to use HSDPA and UMTS. ?Soon we will not only have the best, but also the fastest network?, says Bang-Jensen. ?In principle the network already permits double the speed, i.e. 14.4 mbit/sec, however suitable devices are not available yet.?

Attractive HSDPA-enabled devices
Apart from the suitable data card, ONE will also offer the first HSDPA-enabled handsets starting from February 2007 ?, says Michael Fried, Managing Director Marketing & Sales of ONE. ?Our focus in assembling our handset selection is placed on the benefit the customer derives. As the advantage of HSDPA-enabled handsets is fast data transmission, we address our portfolio primarily to customers wishing to use mobile e-mail, music and special business applications. ?

High market potential for mobile broadband
Since more than 50 percent of fixed internet connections in Austrian private homes are still based on narrow band technology, a big market potential for mobile broadband still exists. ONE launched its mobile broadband offensive in June 2006 with a free trial promotion including the right to return it within two months. Ever since about 15,000 customers have tried mobile broadband. The rate of return is very low. Michael Fried: ?The success of this promotion attempting to free customers from initial fear of contact with mobile internet and e-mail as well as a tenfold increase of data traffic within the ONE network since the beginning of 2006 has shown us that mobile communication is making progress also when it comes to data transmission.?

According to the Austrian Internet Monitor of Integral (Q2/06) the most popular broadband applications are private and professional e-mail use (81 and 57%), surfing the internet (66%) as well as downloading music and videos (29%). ?Mobile e-mail, surfing the internet and music increasingly become the leading mobile applications?, says Fried. ?ONE more reason for us to promote these areas in the coming year.?

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