Eurotel Praha Continues Exceptional Wireless Growth
November 3, 1998
For Information about EuroTel Praha Ltd. contact:
Tel: 02/6701 1193, Fax: 02/6701 1195
For Information about Bell Atlantic contact:
Prague, The Czech Republic -- Leading Czech mobile phone operator
EuroTel Praha announced today that at the end of October it had added
525,000 customers, a 50 percent increase over its 1997 year-end total
of 350,000 customers.
During the past year EuroTel Praha also provided service on its networks
to 1.5 million customers visiting from other countries.
"With such strong demand for our services, we are naturally continuing to
invest heavily in the capacity and quality of our network," said Jamie
Macdonald, chief operating officer of EuroTel. "With EuroTel's GSM
Global now truly reaching nation-wide status, our focus is on further
improving the quality of our coverage, with particular emphasis on in-
building coverage in the major cities and towns of the Czech Republic.
"Even though our coverage is national, we have invested over CZK6 billion
this year to further develop coverage, signal quality, and supporting
"Based on continued strong subscriber growth we expect cellular
subscriber penetration to pass 10 percent of the Czech population in early
"Operational revenues for the first nine months this year exceeded
CZK10.5 billion, representing a year-over-year increase of more than 40%,
or over CZK3 billion," said Michal Heoman, chief financial officer of
EuroTel Praha. "Growth in net profit and other key financial indicators
were very strong from January to September. EuroTel's strong financial
results continue to position it as one of the Czech Republic's leading
companies and helps support the large capital build-out made possible by
drawing against the loan facility that EuroTel arranged in 1997."
EuroTel has access to total financing of $400 million.
As of October 1, 1998, Ed Kingman, former executive vice-president and
chief operating officer of Iusacell, a Bell Atlantic investment operating in
Mexico, became the new Managing Director and CEO of EuroTel Praha.
"Ed's work in the Czech Republic will be based on extensive experience
that he gained in various telecommunications companies in the US and
other countries, as well as during the transformation of Iusacell into a
publicly traded company," said Bessel Kok, chairman of the board of
EuroTel Praha. "EuroTel, led by Ed Kingman, will focus on ensuring the
highest quality of services, extended offers, and on preparing to welcome
our one millionth customer to the highest quality network in the Czech
EuroTel Praha has recently introduced several new corporate and
consumer services. Currently EuroTel is promoting its T!P TOP program,
the only standard mobile program in the Czech Republic that charges
customers no monthly fee.
Beginning today, EuroTel also introduced three offerings for companies
and institutions; "CONEX," "GSM PROMPT," and "GSM LIMIT," all
designed to help large customers better manage the cost of operating
dozens or hundreds of cell phones.
EuroTel's new Managing Director Ed Kingman said, "EuroTel is
positioned to serve the Czech market with world-class services and
"In fact, growth is so strong that EuroTel will add '0606' as a new EuroTel
area code early in 1999."
EuroTel Praha Ltd is a joint venture of SPT TELECOM Inc. (51%) and Atlantic
West B.V. (49%). Atlantic West B.V. is equally owned by Bell Atlantic
(NYSE:BEL) and MediaOne International, which is a part of the MediaOne
EUROTEL PRAHA - GROWTH IN CUSTOMERS
1992 1993 1994 1995 1996 1997 1998
NUMBER 4.600 11.000 27.500 45.800 168.400 350.000 525.000
*Data at the end of October 1998