Introduction

  • Independent auditor's report
  • Interview with Luis Antonio Malvido, the Chairman of...
  • Financial and operational highlights
  • Calendar of key events in 2011

01
About Telefónica Group

  • About Telefónica Group – Introduction

02
Board of Directors' Report on Business Activity

  • Telefónica O2 Czech Republic Group
  • The telecommunications market in the Czech Republic
  • Consumer segment
  • Business and SME
  • Corporate and government
  • National and international wholesale services
  • Payment services
  • Comments on the financial results

03
Corporate Social Responsibility (CSR)

  • Corporate Social Responsibility (CSR) – Introduction
  • Business Principles
  • Market conduct and customer care
  • Caring for employees and the workplace environment
  • Caring for the environment
  • Supporting communities

04
Corporate governance

  • Corporate governance of the Telefónica...
  • Subsidiaries, associates and other ownership interests
  • The organisation of Telefónica CR
  • Governing bodies
  • Board of Directors
  • Executive management
  • Report by the Company's Supervisory Board
  • Supervisory Board
  • Audit Committee
  • Rules for the remuneration of persons with executive...
  • Other information relating to persons with executive...
  • Telefónica CR's Declaration of Compliance with the...
  • Information relating to matters according to Section...

05
Consolidated financial statements

  • Consolidated financial statements – Introduction

06
Financial statements

  • Financial statements – Introduction

07
Other information for shareholders and investors

  • Other information for shareholders and investors

Corporate and government

Telecommunications services

To be able to continue to drive its business and that of its customers forward, Telefónica CR radically reassessed its telecommunications services delivery model: a major customer now gets a comprehensive solution of his telecommunications needs, as well as the many benefits that can only be offered by a single provider capable of meeting all and any needs.

Telefónica CR does not take the customers’ trust for granted; the Company decided to cultivate it through its new programme O2 Exclusive, which offers the best level of care, a regular audit of delivered services at dedicated meetings, as well as many other benefits that make the customers’ everyday lives easier. This approach helped us secure a number of prestigious corporate accounts in 2011:

In the past, Accenture was courted by Telefónica CR several times, with offers of fixed voice services, which the client always deemed uncompetitive. In 2011 we succeeded with overcoming the initial pessimism that the client brought to the negotiating table, and secured the presence of the decision-makers. The client responded well to the comprehensive proposition in all product lines under the umbrella of O2 Exclusive, and we walked away with a new contract for all types of telecommunications services.

After a commitment to our mobile service, Český Rozhlas became an exclusive client, receiving almost all types of telecommunications services from Telefónica CR. The contract for mobile services is for four years. It was to Telefónica CR’s great advantage that the client had a longstanding experience of the quality we deliver through the data and fixed voice services.

In June 2011, ČSA invited tenders for the delivery of a call centre operation from the rather populated sector of ICT providers. Together with its partner Atlantis Software, Telefónica CR beat all the competition and secured the contract. The iCC call centre will go online in April 2012.

Two years ago, Telefónica CR took over WAN connection for the brick-and-mortar branches of Fortuna, from GTS, the previous provider. We repeated the coup in 2011. For Telefónica CR, the contract brings up to 3,000 new lines to Fortuna’s POS network in the next two years, separate MPLS central lines, internet connectivity and two independent database and application server centres.

Telefónica CR became a primary provider of data connectivity to the newly built data centre of Synot IC; the contract is presently for five years. This relationship carries a substantial up-sell potential for other O2 services in the region. Moreover, we managed to expand the portfolio of services by 3,000 data and voice SIM cards. Synot Holding became another exclusive customer of Telefónica CR, relying 100% on our service.

In 2011, a contract for WAN service was signed with Moravia Steel. After taking over from GTS, Telefónica CR will provide data and internet services for a contractual period of 24 months.

In addition to its large corporate clients, in 2011 Telefónica CR also acquired several major customers from the government sector; Lesy ČR, is one such client, with a contract for telecommunications services including IP telephony and LAN redesign.

SZIF (State Agricultural Intervention Fund) is another, with a contract for operating and technical support. Telefónica CR bid the lowest price, secured the contract and helped the fund save up to CZK 100 million.

The Czech Army is now also a client of Telefónica CR, with a contract for mobile and fixed voice services which was signed for 48 months. The same extent of service, plus IT infrastructure monitoring, Telefónica CR will provide to the state-owned company DIAMO. The state-owned companies Povodí Ohře and Palivový kombinát Ústí are now the clients of O2 Car Control.

Our new business acquisition activities were also successful with public organisations at the regional level. Telefónica CR is proud to have been chosen to implement the communication infrastructure of the Karlovy Vary and Pilsen regions.

ICT

The Corporate Division was reorganised in the first half of 2011, to make its structure more focused on the marketing of ICT solutions over telecommunications services.

In June 2011, the Board of Directors approved an ICT strategy for the next three years, which focuses on ‘machine2machine’ verticals, cloud computing and security/networking developed globally at the level of the whole Telefónica Group.

O2 Cloud was the first product to be put on the market in September 2011. The technology behind O2 Cloud offers corporate customers the service of virtual data centres – server capacity, disk arrays, data back-up and restoration. The service has an interactive user and administrator interface, flexible scaling and monthly capacity allotments, all with full functionality guarantees. Customers appreciate the lower cost of this solution compared to operating a proprietary infrastructure.