Telecom Market Liberalization Yves Gauthier Chief Commercial Officer Orange Romania

Orange Romania Licence GSM – as Mobil Rom – December 1996 Commercial Launch - June 1997 License for data services - 1999 License LMDS - September 2000 April 2002 – Orange Romania Coverage: 96% population 77.7% territory (September 2003)

liberalized Romanian telecom market  Impact of liberalization - 01.01.2003 new players – opportunities for all existing operators – potential of extension: data transmission, international traffic fixed telephony ANRC: market regulation decisions , licenses for numbering resources

liberalized Romanian telecom market fixed telephony leased lines international traffic

liberalized Romanian telecom market impact for end-users impact for operators

liberalized Romanian telecom market end-users: choice diversity (services) price quality

liberalized Romanian telecom market operators: increased competition in liberalised areas potential for increased business liberalized Romanian telecom market

liberalized Romanian telecom market areas of interest for Orange Romania: - data transmission - international traffic

liberalized Romanian telecom market offer – a complete range of international products IDD (international voice) roaming leased lines (direct link with the global network of France Telecom) internet

liberalized Romanian telecom market Network extension to Frankfurt (PoP) Interconnection with: major European carriers - Telecom Italia, Belgacom, France Telecom etc mobile operators : Orange group, Telefonica Moviles Spain, T-Mobil Germany, Telecom Italia Mobile operators from neighbouring countries (Hungary, Bulgaria, Moldova)

liberalized Romanian telecom market

France Telecom network - 50 PoPs 100 countries Canada French Antillas United States Venezuela Belgium Czech Republic Denmark France Germany Greece Japan Hong Kong Singapore Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom

Mobile to Mobile coverage Base Proximus Ghg ghg Orange UK Mobistar Orange Denmark Orange Netherland T-Mobile UK * Centertel Poland * T-Mobile Netherland * T-Mobile (Germany)* Orange France T-Mobile (Czech)* Orange Slovakia * T-Mobile (Austria)* Optimus Mobiltel Bulgaria* Orange Switzerland Telefonica Movistar TIM Sunrise Swisscom WIND * In process of implementation

benefits for end users decreased tariffs with 50% for international calls (for prepay and postpay) premium quality for calls originated from Orange network to international destinations guaranteed CLI for calls to Orange networks guaranteed quality (identity) of incoming calls in roaming up to 50% tariff decrease for incoming calls in roaming

benefits for Orange added value on the Romanian telecom market confirmation of the International dimension of the Orange brand International traffic 2.5 x compared with 2002 Usage rate for international calls 3 x compared with 2002

national interconnection new interconnection tariff imposed by ANRC applicable with all interconnection partners currently negotiations for interconnection with 10 new operators Astral Telecom - the first new fixed operator commercially launched interconnection agreements to be signed with SNR, ATLAS, RDS in the near future

2004 - evolution Fixed telephony - increased competition due to new entrants International traffic - further increase in overall outgoing traffic Powerful competition – segmentation of offers (based on quality, destinations etc)

2004 – evolution for Orange 30% decrease of tariffs for incoming calls in roaming for European Countries starting with January 1st 2004 complete solutions for Corporate Customers (data transmission, voice, internet) interconnection agreements with all new entrants on the market evolution of international traffic offer

thanks