Orange's activities

Orange provides mobile services in Slovakia via its whollyowned subsidiary Orange Slovensko (OSK).
Despite an aggressive competition on prepaid and contract offers, Orange Slovensko managed to maintain the good value positioning of its customer portfolio in 2009, thanks to the segmentation of its offers and the defi nition of a new range of offers coupled with abundance offers usable solely on its own network.
The strong growth in the mobile broadband customer base offers positive outlooks in terms of increasing the share of revenues derived from non-voice activities and thus keeping ARPU at a satisfactory level.
Lastly, the strong growth of 87.5% in the fi xed-line business (FTTH) was in line with expectations.

Orange Slovensko sells its products and services in Slovakia through various distribution channels, almongst others:
Orange Slovensko stores, which sell only Orange products. In 2009, there were 170 stores (seven of which were directly operated and 163 run under franchise arrangements);
specialized distributors and retailers selling pay-as-you-go Orange cards;
a call center under Orange Slovensko’s direct responsibility;
an on-line sales website where customers can obtain Orange products and services, and purchase accessories.

The investments made by Orange Slovensko in 2009 focused on improving the quality of 3G coverage in urban areas (densification, penetration in buildings) and on modernizing the transmission network, to cope with the growth in data traffic and to continue to improve bandwidth and reliability. The roll-out of fiber optics continued in 2009, and went hand-in-hand with an increase in Orange Slovensko’s broadband market share to 5.8% in 2009 compared to 3.5% in 2008.