Magyar Telekom launches energy retail service

Budapest, May 5, 2010 13:30

As of May 17, 2010, Magyar Telekom offers electricity and natural gas at discount price to residential customers of its telecommunications services in Budapest's district 18, in Miskolc, Szeged, Székesfehérvár and Szombathely. The energy retail service is also available to business customers. By entering the energy market, the goal of Hungary's largest telecommunication provider is not to trigger major changes in the energy market conditions, but rather, through expanding its service portfolio, to offer added value to its curent and future customers.

As of May 17, Magyar Telekom will offer discount-price electricity and natural gas to its residential customers in four large cities: Szeged, Székesfehérvár, Szombathely, Miskolc and in the metropolitan area of these cities, as well as in Budapest' district18. The service is available to business customers located anywhere in the country. A certain number of small and medium businesses among the customers of T-Systems have been approached directly by their account managers with energy retail offers from April 2010.

Christopher Mattheisen, Magyar Telekom's Chairman-CEO said, commenting upon the energy market entry: "By means of the new service, in addition to telecommunications, we bring energy to the households of our customers, thus ensuring the light and warmth of their homes. Of course, Magyar Telekom's core business remains telecommunications, now supplemented by energy retail offers. Our broad customer base means that people trust us and are used to our existing points of sale, and they can obtain all they need from the same reliable service provider. What is more, we take care of all the necessary administrative steps of switching from their earlier energy service provider to us. By entering new market segments, we wish to improve the satisfaction, comfort and loyalty of our customers."

Magyar Telekom will sell electricity and natural gas with a discount compared to the universal service price (i.e. cheaper than the price the universal service provider would offer) to those residential customers who are existing or future subscribers to certain T-Home services, like fixed telephony, internet, cable and satellite television. We offer three different discount levels to the residential and some small business customers entitled to universal service, thus enabling them to achieve up to 5% savings on electricity and up to 8% on gas. The level of discount depends on the number of core T-Home services the customer subscribes to at the site where the energy is to be provided, as well as the customer's T-Home discount entitlement level reached as part of our Connection loyalty program. We strive to offer competitive propositions to our corporate customers, too.

For customers opting to subscribe to the energy service, Magyar Telekom takes care of all administrative steps associated with switching service provider. Electricity and natural gas will be supplied to them in an uninterrupted way, no installation work on location is necessary. The maintenance of meters, cables and pipelines will remain to be provided by the existing supplier (the one that has the relevant distribution network license). The only change will be that after the cut-over, the electricity and natural gas bills will be sent by Magyar Telekom, separated from the telecommunication bill, in separate envelopes.

Magyar Telekom as a leader in innovation pays extra attention to exploring new markets and growth opportunities, as well as the introduction of innovative non-traditional services. The company has taken its first steps on Hungary's electricity and natural gas retail market by building on its experience gathered on the telecommunications market, aiming to further expand its service portfolio. By becoming an energy retailer, the primary objective of the company is to retain existing customers, as well as to improve their satisfaction and strengthen their trust in the company. The market leader telecommunications provider possesses all the necessary capabilities to provide services to large number of customers. Its existing IT platforms, customer care, collection menagement and mass billing system are applicable also for energy retail purposes.

In compliance with the relevant EU regulation, the liberalization of Hungary's electricity and natural gas market was completed in July 2009. Magyar Telekom recently concluded a strategic agreement with E.ON Energy Supplier LLC, which will be its exclusive supplier of electricity and natural gas to be sold to the company's customers.

Magyar Telekom is not a traditional player on the energy market, thus, in course of introducing this service, we will put extra emphasis on obtaining the necessary experience, which is primarily served by our gradual market entry. Magyar Telekom will define its following steps on the energy market and in expanding its service area in the second half of 2010.

Customers can access more information about the service at www.t-home.hu, or address question to our staff at the T-Pont and partner shops, as well as by calling the toll-free customers care numbers of 1412 and 1435 dedicated to residential and business customers respectively.

About Magyar Telekom
Magyar Telekom is Hungary's largest telecommunication service provider, which offers the full range of telecommunication and info-communication (ICT) services, including fix and mobile phone, data transmission and non-voice, as well s IT and system integration services. The company pursues its business through its two business units: Consumer Services Business Unit (the T-Home brand of services accessed at home and the T-Mobile brand of mobile communication services); Business Services Business Unit (T-Systems brand). Magyar Telekom is majority owner of Makedonski Telekom, the largest fix and mobile service provider of Macedonia, as well as Crnogorski Telekom, Montenegro's largest telecommunication service provider. Magyar Telekom's majority (59.21%) owner is MagyarCom Holding GmbH, which is exclusively owned by Deutsche Telekom AG. Further information is available at www.telekom.hu.