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CR#66_2014 Changes in regulations concerning Orange Polska

 

Pursuant to article 56(1.1) of the Law of 29 July 2005 on public offering and the conditions for introducing financial instruments to the organised trading system and on public companies (Journal of Laws of 2005, No. 184, item 1539, as amended), the Management Board of Orange Polska S.A. (“Orange Polska”, “the Company”) hereby informs about the receipt of decisions from the President of the Office of Electronic Communication (“UKE”).

 

Changes in regulations concerning Orange Polska

 

On October 7, 2014, the President of UKE, having completed a review of the market for wholesale broadband access services (BSA; market 5/2007), issued (i) a decision recognising effective competition in 76 communes (gminas), and (ii) a decision designating Orange Polska as an operator having significant market power (SMP) elsewhere in Poland.

 

The President of UKE’s decisions, which introduce a new regulation scheme for the BSA market, have obtained all the opinions required under the law, i.e. from the European Commission and the President of the Office for Competition and Consumer Protection (UOKiK).

 

Subject to the reservations below, as of the date of the receipt of the decision recognising 76 communes as an effectively competitive area, i.e. October 7, 2014, the regulatory obligations imposed on Orange Polska pursuant to the President of UKE’s decisions of February 14, 2007 (ref. DRT-SMP-6043-23/05 (33)) and April 28, 2011 (ref. DART–SMP–6040-1/10 (47)) were lifted. However, Orange Polska has an obligation to continue to provide telecommunication access with respect to BSA to alternative operators within the deregulated area of the 76 communes on the same terms, provided that such access had been established prior to the receipt by Orange Polska of the President of UKE’s decision. The Company should maintain the existing telecommunication access on the same terms for a period corresponding to the term of the relevant retail agreements between alternative operators and end users for the provision of BSA-based broadband services, but not longer than 24 months after the receipt by Orange Polska of the President of UKE’s decision.

 

Elsewhere in Poland, i.e. outside the 76 communes, Orange Polska remains an SMP operator and is subject to regulatory obligations related to access provision, non-discrimination, transparency, reference offer and pricing. The detailed scope of Orange Polska’s regulatory obligations is set forth in the relevant decision of October 7, 2014 (ref. DART-SMP-6040-1/14 (121)).

 

“UKE creates conditions for the development of the Internet market in Poland and for meeting the objectives of the Digital Agenda in Poland. Deregulation of the Broadband Internet Access will definitely contribute to meeting these goals.  This is good news for customers, who will soon be able to benefit from a new, attractive Internet offer - said Orange Polska CEO Bruno Duthoit. - The decision of UKE is also creating better conditions for investments in very high fixed broadband. Orange Polska is analyzing all possible options and will define our plan in this area within a few months. Orange Polska intends to continue making its infrastructure available to alternative operators in deregulated areas”.

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