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First Austrian Operator To Launch Commercial 3G UMTS

16th April 2003

Austria : Following the technical launch of the UMTS network on September 25, 2002, mobilkom austria, the mobile subsidiary of Telekom Austria AG (VSE: TKA; NYSE: TKA) and the leading domestic mobile operator, announced the launch of 3G services for its customers.

Inset is Boris Nemsic – Chief Operating Officer (COO) Wireless who is quoted below.

The first 3G handsets were handed over to leading political and economic figures yesterday for testing. From April 25 2003, Siemens U10 3G handsets will be available in a selected number of mobilkom austria's A1 shops priced at EUR 799. They can also be ordered online at www.a1.net/3G. Until mid July it will be possible to use 3G handsets free of charge. In future, mobilkom austria will offer a wide range of handsets from different vendors which will allow interoperability between 2G (GSM and GPRS) and 3G (UMTS) technology.

mobilkom austria's multivendor strategy in setting up the 3G network in joint cooperation with Ericsson and Nortel has been instrumental in the rapid and smooth rollout of the first UMTS network in Austria. Since the technical launch in September 2002, mobilkom austria has increased population coverage to 42%. This includes the 54 major towns in Austria with the exception of Salzburg. mobilkom austria's 3G network provides data services and video streaming up to a rate of 384 Kbits per second. 1000 UMTS base stations have been set up so far for a total investment of EUR 72 million.

Clear and transparent pricing

Future pricing for 3G network services is marked by clear and transparent tariff models: no additional monthly rental will be charged, 3G voice telephony tariffs will equal 2G tariffs, the same applies for SMS and MMS services. 3G data services will adopt the GPRS tariff structure used so far. Customers will benefit from more performance such as increased 3G speed, at the same price.

The brand new service offered by 3G technology is mobile video streaming. Billing of video streaming services will be based on usage in the future. Video streams will be available starting from 50 Cents and price will be determined by the content. Customers will pay only the price for the streaming with no extra access charges.

Video streaming with 95 top content partners mobilkom austria offers its customers a range of 3G services: daily up-dated video clips are offered in conjunction with 95 leading content partners such as ORF (Austrian Broadcasting Corporation) and the Austrian soccer league. Daily topical news programs such as ORF news flash and the TV news program 'Wien heute' (Vienna today) can be viewed via mobile phone. Goal alert services from the Austrian soccer league display goals of one's favorite football team on mobile handset a few minutes after they have been scored. A1 also offers weekly summaries of all league and cup games. In addition it is possible to view the latest movie trailers from cinemas as well as the live traffic cameras of the Vienna south east highway and the daily ORF weather forecast program.

This top content portfolio will be extended on an ongoing basis, for instance with live TV and video-on-demand services in collaboration with TV stations such as CNN, n-tv, Euronews, and N24. A1 also offers a number of multimedia and partly interactive games and is extending its traffic camera and application services.

Boris Nemsic, CEO mobilkom austria and COO Wireless Telekom Austria, said: "We are delighted to be launching commercial 3G handsets in Austria. This is an exciting development for the mobile phone industry and once again provides evidence of mobilkom austria's leading position in the market. Looking forward, we call for a regulatory-free UMTS in order to support competition and guarantee that investment, variety in 3G deployment and the speed factor will be taken into due consideration within the regulatory framework"

About Telekom Austria

Telekom Austria is Austria's leading provider of telecommunications services. It was listed on the Vienna and New York stock exchanges in November 2000. The Group has 2 main business areas: the wireline segment encompasses fixed line telephony, data and Internet and the wireless segment mobile communications. Telekom Austria has international operations in the Czech Republic, Croatia, Slovenia.

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