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Also in 2010, the Company put emphasis on providing a fl exible portfolio of voice services meeting the stringent communication requirements of custo- mers. Rodinná pevná linka (Family fi xed line) underwent a transformation to a universal tool for placing calls to all networks and its usage increased also in relation to calls to Slovak mobile networks.

| 41 Report of the Company’s Management | Products and Services

The entire year was marked with a continuing increase in demand for optional calling plans. At the end of 2010, their share was by 2 percent points higher than at the end of 2009 thus reaching 95 % of all price plans for residential customers. At the same time, customers’ interest in calling plans with unrestricted free minute allowance grew including the UNI calling plan product line which offers also free minutes to mobile networks. In the last year, most new customers subscribed to the calling plan Doma Extra offering toll-free calls around the clock within the fi xed network in the Slovak Republic. Also in 2010, the share of customers with UNI calling plans grew reaching approximately 33 %, which was 1 percent point above the 2009 year-end result. This achievement was attributed also to the launch of the new calling plan Doma UNI 120, which attracted thousands of customers in less than a year. This calling plan offers 120 minutes to all Slovak networks and unrestricted calls within fi xed networks during off-peak times.

Voice services were an important component also of the optical FTTx-based offers. Customers could choose from three calling plans Volania Optik Start, Klasik and Komplet. Owing to three variants and the system of packages, the customer could create their own calling plan fully matching the customer’s com- munications needs. A signifi cant growth in the number of customers connected via the optical network was refl ected also in the increasing number of customers with Volania Optik. The respective year-over-year increase facilitated by promoti- onal package offerings stood at over 32%. Optik calls were offered together with Magio internet or digital TV Magio services.

As of 31 December 2010, the Company operated 1.061 million fi xed lines. A number of attractive products contributed to the stabilisation in the num- ber of fi xed lines when compared to other incumbent operators in the CEE region. The Company retained its market position also despite increased competitive pressure on the fi xed line voice market in early 2010. The end of 2010 brought about also changes in the provision of public payphone services. The new measure of the Telecommunications Offi ce of

the Slovak Republic signifi cantly decreased the minimum number of public payphones in Slovakia’s cities and countryside. In the course of the year, the number of public payphones dropped by almost 4 % to 6,702 devices.

Fixed Network Products and Services for SMEs, SOHOs

and Solutions for Large Accounts

Products and comprehensive solutions provided by the Company to Small Offi ce/Home Offi ce (SOHO) entrepreneurs, Small end Medium Enterprises (SME) and large corporations are designed to best meet the communication needs of customers. In the area of voice services, the emphasis is mainly put on optional calling plans offering universal utilisation of free minutes to mobile networks as well as to foreign destinations and free calls within the fi xed network. Towards the end of 2010, the share of optional calling plans in this segment rose to 81 %.

In the past year, the most popular calling plans in the segment of traditional voice services were the Biznis Uni product line. More than half new customers ordered calling plans Biznis Uni 50 and Biznis Uni 150, which are designed for active customers calling all networks. The calling plans Biznis Uni offer free minutes to all networks including mobile and cover 38 countries. Customers showed interest also in calling plans with free calls such as Biznis Mesto and Biznis Slovensko. For communication with their clients, more and more companies and organisa- tions use the Intelligent Network services, which include e.g. toll-free 0800 line and shared-cost number 0850. In the case of a toll-free number, the costs of calls made are borne by the company ordering the service. This is a strong mar- keting tool for providing customers with information on a company’s products, for example. With the shared-cost number, call costs are shared between the customer and the company ordering the service. The service is used by fi rms interested in effective communication with customers that also wish to eliminate malicious and unwanted calls.

For start-ups, SMEs and SOHOs, T-Com’s portfolio offers a comprehensive com- munication solution named Benefi t, a calling plan with a practical combination of voice services, high-speed DSL internet connection and a smart PBX functi- onality. Customers can benefi t from favourable qualities of the price plan such as free unrestricted calls to fi xed networks within the country and also abroad as well as cheaper calls to mobile networks. In 2010, T-Com marketed the calling plan in several variants. The offer also included free supplementary functionalities e.g. convenient and fast computer-based handling of calls, integration with MS Outlook, the “remote offi ce: functionality and all features of a virtual private auto- mated branch exchange without the need to actually invest into the equipment. The Benefi t Start calling plan is used by customers with a single telephone line connected in a one location, who however also want to use the functionalities of a modern PBX, place free IP calls and enjoy a stable and fast internet connection. The Benefi t Light calling plan enables to plug in two telephones in a single PBX. The calling plans Benefi t Optimal and Intensive are designated for multiple users – four and eight, respectively.