Regulatory News Announcement

RNS Number:3496Z
Cesky Telecom A.S.
06 March 2006

> PRESS RELEASE - 06.03. 2006>


CESKY TELECOM ACQUIRES ANOTHER LICENSE FOR TRANSMITTING DIGITAL TELEVISION


CESKY TELECOM, a.s., has acquired a license for the short-term experimental
transmission of digital television (DVB-T) through its subsidiary company
OMNICOM Praha, spol. s.r.o. In the scope of the pilot transmission, the operator
will offer programs from the Ocko music station and TOP TV, it will also enable
viewers to tune into Brno television station TVb 1.


'We received a 60-day license for experimental transmitting, which will begin as
of today, March 6, 2006. This will last until the launch of regular digital
broadcasting on the basis of a license regulation in multiplex C,' stated
Miroslav Horejsi, Deputy Executive Manager, OMNICOM.


Michal Zilka, Executive Director of Content Services and Business Development
for CESKY TELECOM, added: 'While we are waiting for the license for regular
commercial broadcasting in the DVB-T system we would like to be active by means
of the pilot transmission. We would also like to test the quality of the
transmission of the digital signal and of interactive applications, including
those that have been newly prepared.'


The greatest benefits of digital television include excellent picture and sound
quality. The opportunity to receive more channels is also a major advantage. In
connection with CESKY TELECOM services, primary interactive possibilities will
include on-line betting, voting, TV learning, TV government, TV banking, gaming,
chat, interactive advertising, e-mail, SMS and much more.


The difference between the DVB-T (Digital Video Broadcasting - Terrestrial)
system and an analogue system lies in the manner in which a television signal is
transmitted. In the DVB-T system, the signal is relayed digitally over the
course of the entire transmission (i.e. from the studio to television viewers).


It is possible to receive digital television broadcasts in locations covered by
an existing antenna system. In order to receive a digital signal, a television
receiver must be equipped with a decoder (to convert DVB-T to PAL). If it is
not, it must be supplemented by a set-top box, which provides a connection
between the TV receiver and the antenna. A regressive channel that is necessary
for using interactive applications is also created directly by the television
receiver, or the set-top box, through the Internet or a telephone line. It is
also possible to receive a digital television signal on a computer through a
special card designed to receive a DVB-T signal.


For further information, please contact:

MARTIN ZABKA

Press Spokesman

Tel: +420 271 463 359

Fax: +420 271 469 896

e-mail: tiskovy.odbor@ct.cz


CESKY TELECOM, a. s., a member of the Telefonica Group, is the leading
telecommunications company in the Czech Republic. Through its subsidiary company
Eurotel Praha, spol. s r.o., it also has a significant presence in the Czech
mobile services market. Further information about the firm and the services it
offers is available at www.telecom.cz, which was rated as BestWeb 2003 in the
WebTop100 survey.

Signum Temporis has consistently awarded CESKY TELECOM for being one of the
domestic capital market's most transparent firms in terms of providing
information. Based on an open vote of specialists, members of the press and a
nine-member committee, CESKY TELECOM placed first in 2003, just as it did in
2001.

CESKY TELECOM ranks among the most prominent firms on the Czech capital market
in terms of capitalization and trading volumes. Its shares are also traded on
the London Stock Exchange in the form of GDRs. CESKY TELECOM's credit rating is
the highest a Czech corporation can receive from top international rating
agencies.

About OMNICOM Praha

OMNICOM Praha, spol. s r.o., is a subsidiary company owned solely by CESKY
TELECOM, a.s. It was founded in 1991. It was initially oriented towards
providing solutions in the CASE field; however, the company's activities soon
began to shift towards computer networks. In as early as the first few years of
its existence it achieved a number of outstanding successes. Since then, the
company has been making the fullest possible use of its assets. All of its
networks are built with maximum emphasis placed on surveillance and remote
diagnostics. It is developing a new product called 'Operational support', which
its first customers are receiving. Its own surveillance centre is also
expanding, its method of surveillance has become more elaborate, and its
so-called Integrated Care(R), which has become the company's motto, has become
part of all its other services (pre-sale and post-sale).

It is starting the preparations of a new product - consultation and education in
the field of ITSM/ITIL. Its own ITIL courses have branched off and the company
also thrives in the fields of consultation and ITIL implementation. At present,
OMNICOM has ISO 9001:2000 standard certification for its activities in providing
training and consultation services in ITIL/ITSM. Since September 16, 2005,
OMNICOM Praha has been the holder of a license for experimental DVB-T digital
television broadcasting. OMNICOM Praha is also part of ongoing licensing
procedures for digital broadcasting in its full-format TV ZONE project and news
service - the TV REAL sports channel.

Integrated Care(R)  is a method of principles and approaches thanks to which
customers receive not only services an products, but also a self-contained,
ideally balanced, co-operative and mutually supporting and supplementing package
of solutions. It comes with all services and products that OMNICOM offers, and
reinforces its professional and technical interconnection considerably and makes
perfect use of all its resources and opportunities.


About Telefonica

Telefonica is Europe's leading integrated telecom company and second biggest in
the world. Its activities are centred mainly on the fixed and mobile telephony
businesses with broadband as the key tool for the development of both of these.

The company is operating in 40 countries and together with CESKY TELECOM has a
customer base that amounts to more than 140 million access. Telefonica has a
strong presence in Latin America, where the company concentrates part of its
growth strategy.

Telefonica is a 100% listed company, with more than 1.5 million direct
shareholders. Its share capital currently comprises 4,921,130,397 ordinary
shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and
Valencia) and on those in London, Paris, Frankfurt, Tokyo, New York, Lima,
Buenos Aires, Sao Paulo and the SEAQ International Exchange in London.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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