Current reports

WARSAW, Poland – December 23, 2009 - Netia SA (“Netia” or the “Company”) (WSE: NET), Poland‘s largest alternative provider of fixed-line telecommunications services, announces today that in relation to the agreement signed on October 22, 2009 between the President of the UKE (the Regulator) and Telekomunikacja Polska (“TP”) (the “Agreement”), on the basis of which it was resolved that the currently binding rates for the telecommunications access should be applied in relations between TP and alternative operators (“AO”) until December 31, 2012, Netia and TP (the “Parties”) reached an agreement with respect to the scope and substance covered in a sample agreement between TP and AO, representing Annex 4 of the above mentioned Agreement between the President of UKE and TP. The Parties agreed that the wholesale rates for telecommunications access (i.e., interconnection, wholesale line rental (“WLR”), local loop unbundling (“LLU”), bitstream access (“BSA”) and access to ducts) binding in the reference offers as at October 10, 2009 will remain in force until December 31, 2012 as follows:

• amount of WLR wholesale charge will remain unchanged for the 3 year period,

• amount of LLU wholesale charge will remain unchanged for the 3 year period,

• amount of BSA wholesale charge for broadband services delivered by Netia to existing subscribers at currently offered transmission speeds will remain at the level not higher than the amount of charged fee as agreed on October 10, 2009 for the 3 year period,

• rules for setting BSA wholesale charges for new Netia subscribers who will be taking currently offered transmission speeds, which shall be based on a ‘cost plus’ formula, including the margin squeeze test, are not covered by the aforementioned agreement and are currently subject to negotiations between TP, UKE and AO under to the Agreement. The charge may not be higher than the amount of BSA wholesale charge as agreed on October 10, 2009 for the 3 year period,

• rules for setting BSA wholesale charges for new Netia subscribers who will be taking newly offered transmission speeds, unavailable as at October 10, 2009, shall be based on a ‘cost plus’ formula, including the margin squeeze test, and are not covered by the above agreement and are currently subject to negotiations between TP, UKE and AO under to the Agreement.


Furthermore, Netia and TP obliged themselves to withdraw their law suits and terminate all court disputes, including the resignation from claims. Detailed information on above legal matters and regulatory risks with regard to the Company is available in the commentary to the quarterly financial report for 3Q 2009 published by the Company on November 5, 2009.