Key performance indicators at 31 December 2006: Mobile service revenue (at constant currency)*: · O2 UK net service revenue grew by 13.7% in Q4 and 14.7% for 11 months to 31 December · O2 Germany service revenue grew by 3.3% in Q4 and 6.7% for 11 months to 31 December · O2 Ireland service revenue fell 1.5% in Q4; in 11 months to 31 December grew by 1.1% · O2 Czech Republic service revenue grew by 8.0% in Q4 and 6.4% for 12 months to 31 December *Comparative period is equivalent period in 2005 Mobile average revenue per user (12 month rolling ARPU): · O2 UK blended ARPU £273 (Q3 2006: £272; Q4 2005: £267) · O2 Germany blended ARPU €290 (Q3 2006: €299; Q4 2005: €332) · O2 Ireland blended ARPU €542 (Q3 2006: €545; Q4 2005: €550) · O2 Czech Republic ARPU CZK6,133 (Q3 2006: CZK6,089; Q4 2005: CZK6,117) Mobile data in the fourth quarter · Group SMS volumes grew by 23% year on year to 7.04 billion messages Peter Erskine, Chairman & Chief Executive of Telefónica O2 Europe, commented: “O2 performed strongly throughout 2006 in increasingly competitive European markets and the fourth quarter was no exception, adding 825,000 mobile customers, taking the total mobile customer base to 35.2 million, 10% higher than last year. In the UK we added 295,000 net new customers, driven by our customer focused propositions and our best ever handset lineup for the Christmas period. Contract churn was again reduced and monthly minutes of use in the quarter grew 9% year on year to 180 minutes. Service revenue for the 11 months to 31 December grew by 14.7%, at the high end of our upgraded guidance range. O2 Germany added 396,000 net new customers in the quarter taking the total base to 11.025 million, representing 13% year on year growth. The market continues to be highly competitive and this, coupled with further termination rate cuts in November, put downward pressure on ARPU. Monthly minutes of use in the quarter grew by 5% to 129 minutes, maintaining our position as market leader, while the launch of our new Genion S/M/L tariffs at the end of November was well received by customers. Coupled with our DSL offering, O2 is now equipped with a new range of propositions for 2007 and will seek to differentiate itself as an integrated fixed/mobile communication provider, focused on the customer. In the Czech Republic the O2 brand is working well and the business has maintained its momentum, delivering OIBDA growth of 2.4%, for the 12 months to 31 December, compared with our upgraded guidance of around 2% growth. The mobile business added 104,000 net new customers in the quarter and our ongoing focus on pre-pay to contract migration again raised the percentage of contract customers in the base, to 38.5%, compared to only 33.1% at the end of 2005. In our fixed line business, the total number of ADSL lines stood at 470,000 at the end of December, compared to 274,000 at the same time last year. I am pleased to say that just six months after being awarded a licence Telefónica O2 Slovakia launched on 2nd February, offering customers a simple tariff for calls at anytime of the day. In a competitive market O2 Ireland traded well, adding 29,000 net new customers and ending the quarter with a total customer base of 1.632 million, 2% higher than at the same time last year. Airwave continues to perform well and make good progress in winning new contracts and rolling out the service to new customers. In early February Airwave announced two new contract wins – a 10 year contract worth £32 million with the Welsh Ambulance Service, and a contract with London Underground Limited to provide Airwave coverage for the emergency services throughout London’s underground network. In December Telefónica announced a strategic review for Airwave, including a total or partial disposal of the company. This process is likely to take a number of months and in the meantime Airwave remains focused on both its customers and operational targets.” FINANCIAL DATA The results of O2 Group comprise the results of O2 UK, O2 Germany, O2 Ireland and O2 Airwave for the 11 month period ended 31 December 2006. It also includes the results of Be from 1 July 2006, Decision Focus from 1 August 2006 and The Link from 16 September 2006. O2 Group Consolidated Income Statement Unaudited figures 3 months ended 31 December 2006 Period ended 31 December 2006 €m €m Revenues 3,098 10,733 Internal expenditure capitalized in fixed assets (1) 54 187 Operating expenses (2,403) (8,069) Other net operating income (expense) (21) (67) Gain (loss) on sale of fixed assets 1 (10) Impairment of goodwill and other assets 0 0 Operating income before D&A (OIBDA) 728 2,773 (1) Including work in process O2 Group capital expenditure for the 11 month period ended 31 December 2006 totalled €2,238 million. The results of Telefónica O2 Europe for the period ended 31 December 2006 comprise the results of the O2 Group for the 11 month period ended 31 December 2006 and the results of Telefónica O2 Czech Republic and Telefónica Deutschland for the 12 month period ended 31 December 2006. It also includes the results of Be from 1 July 2006, Decision Focus from 1 August 2006 and The Link from 16 September 2006. Telefónica O2 Europe Consolidated Income Statement Unaudited figures 3 months ended 31 December 2006 Period ended 31 December 2006 €m €m Revenues 3,725 13,159 Internal expenditure capitalized in fixed assets (1) 57 219 Operating expenses (2,836) (9,570) Other net operating income (expense) (29) (83) Gain (loss) on sale of fixed assets 1 (8) Impairment of goodwill and other assets (7) (9) Operating income before D&A (OIBDA) 910 3,708 (1) Including work in process Telefónica O2 Europe capital expenditure for the period ended 31 December 2006 amounted to €2,553 million. STRATEGIC AND OPERATIONAL HIGHLIGHTS O2 launched in Slovakia On 2 February 2007 Telefónica O2 Slovakia launched its commercial service. In the first 12 days over 110,000 active customers were acquired. The initial offer, called “O2 Jednotky”, includes prepaid on-net calls for SKK 2 and SKK 8.50 for calls to all other networks, and the Czech Republic, at anytime of the day. From 2 February until 31 March all customers will receive a 100% credit bonus when they top up for the first time. Top up vouchers are available with a value of SKK 250 and 350 (valid for 3 months), as well as SKK 550 and 950 (valid for 6 months). Vouchers will be sold through a broad distribution network of more than two thousand points of sale located across Slovakia. New DSL and Genion tariffs launched in Germany During the quarter O2 Germany launched its DSL service and refreshed its successful Genion Homezone tariffs, enabling the company to offer integrated mobile, DSL landline telephony and broadband Internet access services. The DSL packages, O2 DSL S/M/L, are priced from €40 to €55 a month and comprise a DSL connection of 4 to 16 megabits per second with a flat rate tariff for Internet access, plus per minute billing for fixed line calls with the S package and a flat rate calling tariff for both the M and L packages. O2 DSL customers who are also O2 mobile contract customers receive a discount of €5 per month. Each package also includes a DSL Surf & Phone Router for €19.99. The router is a “plug-and-play” solution, installing itself automatically, and includes an ISDN terminal, two analogue telephone sockets, a WLAN-enabled DSL router and an integrated firewall and content filter. The refreshed Genion tariffs – S/M/L – are closely integrated with the new DSL offering. The new tariffs simplify and reduce prices for making calls from both within and outside the Homezone. The Genion S tariff is a postpay tariff without a fixed contract term and no basic monthly fee – customers only pay for the calls they actually make, with calls from the Homezone to the German fixed network at 3 cents per minute and calls into all other German mobile networks at 19 cents. Genion M offers a flat rate tariff for calls from the Homezone, while the Genion L tariff introduces a Germany-wide flat rate for a monthly fee of €25. Be continues network rollout in the UK O2 UK’s broadband unit Be had rolled out to over 500 exchanges by February 2007, giving its broadband network a population coverage of more than one third. Be operates one of the most innovative and technically-advanced UK broadband networks, using ADSL 2+ technology which offers download speeds of up to 24 Mbps on a virtually uncontended network. Be also launched “Upload Plus” during the quarter, a service which allows business broadband customers to send data at much faster speeds of up to 2.5Mbps, more than double the nearest competitor. Be is the first UK ISP to offer this service, with a rollout to consumers planned for the second quarter. Plans to offer an integrated mobile and broadband service from O2 in mid 2007 are progressing well, driven by three aims: to make customers’ lives easier; to offer the best service quality and customer service in the market; and to give straightforward value for money. Integration of The Link stores During the quarter O2 UK finished the re-branding of 96 Link stores, bringing the total number of O2 Retail stores to around 400. This expansion is part of an ongoing shift in the UK market towards increased direct distribution by network operators. As the focus moves to retention and loyalty in an increasingly mature market O2 is well placed to improve the customer experience through its award winning retail chain. O2 Ireland joint venture with Tesco, DVB-H trial and launch of Napster Mobile In December, O2 Ireland and Tesco Ireland announced that they will launch Ireland’s first mobile virtual network operator (MVNO), called Tesco Mobile, in Summer 2007. The new independent company will be a joint venture between Tesco Ireland and O2 Ireland and will use an 089 number prefix. In October O2 and Arqiva jointly announced the first consumer trial of broadcast mobile TV in Ireland, featuring all the main Irish TV channels plus content from Sky and other channels. 350 O2 customers in the Greater Dublin area will be able to access broadcast TV on their mobile phone during the trial, using the Nokia N92 DVB-H handset. O2 has already conducted initial demonstrations of broadcast mobile TV at the 2006 Ryder Cup, with content from RTE 1, RTE 2, TV3, TG4 and Sky. The trial will commence in early March. In December O2 Ireland became the first mobile operator in Europe to offer Napster Mobile. The service allows customers to search, browse, preview and purchase content from Napster’s music catalogue of over two million songs. The service also features a “recommendation engine” which makes suggestions based on each customer’s personal taste in music Strategic Review of Airwave Following on from Telefonica’s announcement in December 2006, JPMorgan Cazenove has been instructed to conduct a strategic review of Airwave, including a possible sale of the business. Since that date JPMorgan Cazenove has been working with all stakeholders involved, including the UK government, to review options and produce an Information Memorandum, which is expected to be released in early Spring. With the conclusion of the Welsh Ambulance contract, Airwave has now contracted with all the blue light emergency services in the UK and continues to pursue other opportunities, such as winning new contracts and providing additional services to existing customers, as demonstrated by recent announcements regarding contracts with London Underground and Channel Tunnel Rail and the launch of new data services. FOURTH QUARTER Operating review O2 UK Fourth quarter net service revenue grew by 13.7% year on year and for the eleven months to 31 December reached a total of £3,885 million, an increase of 14.7% compared to the same period last year, driven by continued strong customer and ARPU growth. OIBDA margin for the eleven months to 31 December 2006 was 28.4% compared to 29.3% for the same period last year, reflecting the high level of customer growth, with O2 UK adding 1.65 million customers in the calendar year. OIBDA for the eleven months to December 2006 was £1,211 million, an increase of 10% compared to last year. The quarter again saw tough competition in the market, but the business continued to perform well with broadly stable gross additions quarter on quarter, although year on year gross additions were down around 5% due to the increasingly mature nature of the UK market. A total of 295,000 net new customers were added in the quarter, taking the base to 17.633 million, 10% higher than at the same time last year (excluding the Tesco Mobile customer base). A total of 136,000 net new contract customers were added in the quarter and at the end of the period contract customers made up 35.3% of the total base, compared to 34.4% in the same period last year. 12 month rolling contract ARPU of £513 was down £2 quarter on quarter, and £4 lower than the fourth quarter last year, as a result of new customer propositions and an increasingly competitive market. 12-month rolling contract churn was 23%, compared to 27% for the same period last year, the sixth consecutive quarter of decline, reflecting the ongoing strategy of rewarding customer loyalty. A total of 159,000 net new pre-pay customers were added in the quarter, and 12 month rolling pre-pay ARPU of £143 was £7 higher than the fourth quarter last year and £1 higher than the previous quarter, driven by promotions such as O2 Long Weekends. O2 UK’s blended 12 month rolling ARPU of £273 was £6 higher than the fourth quarter last year, and £1 higher than the previous quarter, reflecting the continued growth in data ARPU coupled with broadly stable voice ARPU. O2 UK’s own channels accounted for around 60% of gross connections in the quarter. O2 UK also completed the re-branding of 96 Link stores to expand its O2 Retail network to around 400 stores. Blended customer acquisition costs (SAC) on an annual basis fell by around 9% year on year. Quarterly monthly minutes of use were up 9% year on year to 180 minutes a month, driven by propositions such as 50% extra minutes on 18 month contacts, Treats and Long Weekends. 12 month rolling data ARPU of £84 was £7 higher than the same period last year and £1 higher than the previous quarter, driven primarily by growth in text message volumes, up 30% year on year in the fourth quarter, as well as increasing usage of a range of non-SMS services. Capex in the eleven months to December (excluding capex related to the acquisition of Be and The Link) was £518 million, with continued expenditure on rolling out coverage of the 3G network as well as investment in the existing 2G network to ensure a high level of service. O2 UK promoted a number of products and services during the quarter, aimed at acquisition and retention of customers and revenue growth. These included: – O2 Long Weekends, offering free on net calls from Saturday to Monday for new and existing O2 Pay and Go customers who top up £15 a month and free calls to any network in the UK for new Pay Monthly and upgrading customers; – O2 Treats, offering customers bundles of free texts, voice minutes or value added services after
6 months as an O2 customer to reward loyalty; – O2 Rewards, offering prepay customers 10% of top-ups back every 3 months – Bluebook, which enables customers to store contact information, text messages, pictures and video clips to a free web-accessible personal account. The converged service is a first for any UK mobile operator. – The Xda Orbit, the latest model in the successful Xda range, a stylish, ultra slim, lightweight device with inbuilt Global Positioning System (GPS). The Xda Orbit features Microsoft® Windows® Mobile 5.0, with direct push email giving real time access to Microsoft® Outlook® Inbox, Calendar, Contacts and Tasks. The Xda Orbit also has an FM radio, an MP3 player, a 2.0 megapixel camera and a quad band mobile phone; O2 Germany Service revenue grew by 3.3% in the fourth quarter, and for the eleven months to December reached a total of €2,808 million, an increase of 6.7% compared to the same period last year, driven by the continued growth of the customer base, which partly offset ARPU weakness in the German market. Fourth quarter service revenue was reduced by almost 5% due to the termination rate cuts in December 2005 and November 2006. OIBDA margin for the eleven months to December was 20.7%, 1 percentage point lower than the same period last year. OIBDA for the eleven months to December 2006 was €631 million, broadly flat compared to the same period last year. OIBDA and consequently the OIBDA margin were negatively impacted by the inclusion of an exceptional charge related to a rebalancing of the workforce towards customer-facing areas. O2 Germany plans to increase the number of employees in areas such as customer service and sales and to reduce positions in non-customer facing areas. Excluding this charge, the OIBDA margin for the eleven months to December 2006 is 21.8%, stable in comparison to the same period last year and in line with the full year guidance. In a highly competitive environment, O2 Germany continued to trade well. A total of 396,000 net new customers were added in the quarter, taking the base to 11.025 million, 13% higher than at the same time last year. The Tchibo Mobile customer base grew by 55,000 to 827,000 by the end of the quarter. O2 Germany added a total of 193,000 net new contract customers in the quarter, its highest level since the fourth quarter last year. 12 month rolling contract ARPU of €475 was €6 lower than the previous quarter, and €33 lower than the same quarter last year. This reflected the impact of the termination rate cuts in both December 2005 and November 2006, as well as increasing competition in the German market and the introduction of new customer offers. A total of 203,000 net new pre-pay customers were added in the quarter. 12 month rolling pre-pay ARPU of €105 was €6 lower than the previous quarter and €25 lower than the fourth quarter last year, reflecting the impact of the termination rate cuts, increasing competition, higher market penetration and the growth in multiple SIM ownership and lower minutes of use. Blended 12 month rolling ARPU remains the highest in the German market at €290, down from €299 in the previous quarter and €332 in the same quarter last year. This trend reflects the ongoing impact of the termination rate cuts, the rapid growth in the pre-pay customer base over the past 12 months, which now makes up over 50% of the total base, and the increasingly competitive market environment. Termination rate cuts reduced 12 month rolling ARPU in the quarter by approximately €13. Customer acquisition costs (SAC) on an annual basis fell by around 8% year on year. Quarterly monthly minutes of use grew by 4% year on year, to 129 minutes, driven by new propositions such as Genion flat rate. O2 Germany now has a total of 3.9 million Genion customers (71% of the post-pay base), with 51% of all new post-pay customers opting for Genion. 12 month rolling data ARPU was €69, €1 less than the previous quarter and €8 lower than the same period last year due to the higher number of lower spending pre-pay users in the base and a shift from SMS to voice usage. Non-SMS data users grew 12% compared to the same period last year. Capex in the eleven months to December was €1,139 million, with continued expenditure on both the 3G and 2G networks. O2 Germany launched a number of new products and services during the quarter, including: – Genion S/M/L – Genion S is a postpay tariff without a fixed contract term and no basic monthly fee – customers only pay for the calls they actually make, with calls from the Homezone to the German fixed network at 3 cents per minute and calls into all other German mobile networks at 19 cents. Genion M offers a flat rate tariff for calls from the Homezone, while Genion L has a Germany-wide flat rate for a monthly fee of €25. – LOOP S/M/L, a new prepay tariff to reward larger top ups. For a €30 top up the customer receives a €20 bonus. – O2 Business flat, a nationwide flat rate tariff for on-net and fixed net calls. The flat rate is available for €25 per month SIM only and €35 with a handset. Off-net calls cost 15 cent/min. The Genion-Option for O2 Business and O2 Business Profi tariffs were also reduced, with local and long distance calls now charged at 2.5 cent/min (ex. VAT). – The Xda Orbit, the latest model in the successful Xda range, a stylish, ultra slim, lightweight device with inbuilt Global Positioning System (GPS) (featured with TomTom 6 navigation software). The Xda Orbit also has an MP3 player, a 2.0 megapixel camera and a quad band mobile phone; – AOL Mobile. AOL Germany launched a mobile service during the quarter in co-operation with O2 Germany. The basic tariff costs 19 cent/min for calls to all networks, with SMS priced at 16 cents. Three additional options can be added to this basic tariff; Plus Family (€4.99/month) gives free calls between up to five numbers and an AOL phone; AOL Plus Friends (€2.99) enables national community calls for 5 cent/min; Plus Web offers 20 MB of WAP and Web browsing for €4.99. – Launch of HSDPA on 1 December 2006. Data download speeds of up to 1.8 Mbit/s are available in Hamburg, Berlin, Cologne, Düsseldorf, Frankfurt and Munich. There is no HSDPA surcharge on existing UMTS tariffs. O2 Ireland Service revenue fell by 1.5% in the fourth quarter due to termination rate regulation, increasing competition and the introduction of new customer offers. The termination rate cut of RPI minus 11% in January impacted fourth quarter service revenue growth by approximately 2%. For the eleven months to December service revenue reached a total of €824 million, an increase of 1.1% compared to the same period last year, driven by a higher customer base. In a competitive market O2 Ireland traded well, with gross and net connections at a broadly similar level to the fourth quarter last year. 29,000 net new customers were added in total during the quarter, taking the total base to 1.632 million customers, 1.9% higher than at the same time last year. O2 Ireland added a total of 17,000 net new contract customers in the quarter. 12 month rolling ARPU of €1,020 was €53 lower than the fourth quarter last year and €20 lower than the previous quarter, reflecting the impact of the termination rate regulation. A total of 12,000 pre-pay customers were added in the quarter, and 12 month rolling ARPU was €353, down €7 on the same period a year ago and €3 compared to the previous quarter. Blended ARPU of €542 was reduced by approximately €7 due to the termination rate cuts, and was €8 lower than the same quarter last year and down €3 quarter on quarter. Quarterly monthly minutes of use increased by 10% year on year to 246 minutes, mainly due to the ongoing success of usage stimulation promotions such as 1 cent weekends on pre-pay. 12 month rolling data ARPU was €117, €4 higher than the fourth quarter last year and €1 higher than the previous quarter. Non-SMS data users grew by 53% year on year. In addition O2 Ireland launched a number of pricing initiatives and services during the quarter. These included: – Extension of a new device repair programme called Swap Out Service (SOS). From an initial trial in six O2 stores, the programme has been extended to all O2 Retail stores. Under the new service, customers are given an immediate replacement handset if they have a faulty device which is within its warranty period. – The launch of Napster Mobile in Europe on O2 Ireland 3G i-mode handsets. Napster Mobile allows O2 Ireland customers to search, browse, preview and purchase content from Napster’s immense music catalogue of over two million songs. O2 Ireland also continued to promote the following offers: – 1 cent calls and texts at weekends for prepay customers, extended until 25 February 2007. – “My Europe” roaming tariff, offering holidaymakers a reduced flat-rate voice roaming rate across the European Union. Using the free opt-in service, O2 customers are charged a flat rate of 59 cent per minute to make or receive a call within the EU, regardless of the mobile network used, at any time. Telefónica O2 Czech Republic* The O2 brand in the Czech Republic continues to work well, with high levels of customer awareness, and the business has built on the merger of the fixed and mobile business, and the re-branding campaign in September, to deliver full year OIBDA growth of over 2%. Mobile service revenue grew by 8.0% in the fourth quarter, driven by both growth in the customer base, up 4.0% year on year to 4.864 million, and ARPU. For the full year mobile service revenue growth was 6.4% A total of 93,000 net new contract customers were added in the quarter, bringing the contract customer base to 1.875 million, an increase of 21.3% year on year. Contract customers accounted for 38.5% of the total customer base at the end of the fourth quarter, compared to only 33.1% at the end of 2005. This growth was achieved through acquisition of new customers as well as marketing campaigns focused on pre-pay to contract migration. Despite this migration to contract, the pre-pay customer base had positive net additions during the fourth quarter, compared to a decline of 65,000 in the previous quarter. 12 month rolling contract ARPU of CZK11,863 was CZK2,116 lower than the same period last year, and CZK267 lower than the previous quarter, mainly due to the effect of the pre-pay to contract migration strategy. A total of 11,000 new prepay customers were added in the quarter, bringing the prepay customer base to 2.99 million, 5% lower than at the end of 2005, due to the ongoing prepay to contract migration strategy put in place at the start of 2006. 12 month rolling pre-pay ARPU of CZK2,868 was CZK62 lower than the fourth quarter last year but CZK14 higher than the previous quarter. 12 month blended ARPU was CZK6,133 in the fourth quarter, CZK16 higher than the same period last year and CZK44 higher than the previous quarter. 12 month rolling data ARPU was CZK1,291, an increase of CZK67 compared to the fourth quarter of last year and CZK10 higher quarter on quarter. Quarterly monthly minutes of use grew to 109 minutes, up 13% compared to the same period last year, mainly due to the increase in the contract customer base, driven by migrations from prepay, and traffic stimulation promotions In fixed line, total business revenues in the 12 months to December fell by 5.1% year on year to CZK29.9 billion, as a result of the continued decline in revenues from traditional voice services, which was not fully offset by the increase in broadband revenues. Revenues from broadband services amounted to CZK2.7 billion in the year, up 49.9% compared to 2005. A total of 43,000 net ADSL connections were added in the fourth quarter, driven by marketing campaigns promoting increased broadband speeds. The total number of ADSL lines stood at 470,000 at the end of the quarter, compared to 274,000 at the end of December 2005. On 1st September the business launched a multimedia entertainment service called O2 TV, an IPTV based product and the first of its kind in the Czech Republic. By the end of the year O2 TV had 16,000 customers, and recently it was announced that this figure had increased to 20,000, demonstrating continued demand for the service. In conjunction with the re-branding, Telefónica O2 Czech Republic also launched a number of new products and services in the quarter including: – Internet Komplet – subscribers can use both the O2 Internet Expres broadband fixed-line (ADSL) service and the O2 Internet Mobil (CDMA) service for mobile Internet access as part of one monthly fee, offering customers maximum freedom in terms of connecting to the Internet throughout the Czech Republic. The mobile service offers speeds of up to 512 kbp/s. and customers also gain access to the O2 WiFi Hot Spot network, the largest WiFi Hot Spot network in the Czech Republic. In addition until the end of October customers were offered a bonus CZK2,000 if they also subscribed to an O2 mobile tariff. There are four packages, with prices ranging from CZK799 to CZK1,599. Each includes 20 hours of access on the mobile CDMA network, with ADSL download limits of 1GB to 20 GB. * After the merger of Cesky Telecom and Eurotel on 1 July 2006, all inter-company charges between fixed (?ESKÝ TELECOM) and mobile (Eurotel) segments became intra-company. Therefore, the financial results of the fixed and mobile segments for the twelve months to 31 December 2006 are disclosed excluding inter-segment revenues and costs. In addition, financials for twelve months to 31 December 2006 have been adjusted accordingly to allow for relevant comparison. However, historic consolidated numbers for Telefonica O2 Czech Republic/Cesky Telecom Group remain unchanged and mobile ARPU has not been adjusted for inter-segment revenues O2 Airwave After the period end, Airwave announced the Welsh Ambulance Service had signed a 10 year contract worth £32 million to use its service, as well as a contract with London Underground Limited valued at £115 million to provide Airwave coverage for the emergency services throughout London’s underground network. Airwave has now contracted with all the “blue light” emergency services in the UK to supply a secure digital communications system. In December a 10 year contract was signed with Lancashire constabulary to provide a managed mobile data solution based around the Airwave Mobile Applications Gateway (MAG) Service and the Airwave network. This groundbreaking development means that Lancashire Constabulary will become the first UK police force to deploy a multi-bearer force-wide mobile data solution. During the quarter Airwave also launched the “Locator” service, a new location based service aimed at all Public Safety organisations, including Police, which need to know the whereabouts of their people and assets. A £2.8m contract was also signed with Channel Tunnel Rail Limited to provide Airwave communications to their UK tunnels and stations. Airwave continues to improve its offering to customers with the development of voicemail and call forwarding adding new functionality to Airwave’s telephony features. Cautionary Statement Regarding Forward-Looking Statements This document contains certain forward-looking statements. We may also make written or oral forward-looking statements in: – our annual report and accounts and half-yearly reports; – our press releases and other written materials; and – oral statements made by our officers, directors or employees to third parties. We have based these forward-looking statements on our current plans, expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about us. Forward-looking statements speak only as of the date they are made. Statements that are not historical facts, including statements about our beliefs and expectations are forward-looking statements. Words like “believe,” “anticipate,” “expect,” “intend,” “seek,” “will,” “plan,” “could,” “m
y,” “might,” “project,”
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