Bulletin
Netia and P4 sign service provisioning contract
Netia SA concluded on December 7, 2007 a service provision agreement with its affiliate company P4 Sp. z o. o. with its seat in Warsaw. The Agreement provides for cooperation with respect to:
- incorporation of P4’s mobile products and services to the offer available to Netia’s clients or/and
- introduction of a joint offer of fixed-line and mobile services
and the distribution of the said products by Netia, in its own name and on its own behalf.
The service provisioning agreement with P4 will allow Netia to offer both mobile and convergent products under its own brand. The expansion of Netia’s product portfolio with these services constitutes one of the Company’s strategic targets in reaching Netia’s goal to become the leading alternative provider for broadband services in Poland. The commercial launch of mobile and convergent services by Netia is planned for 2008.
This Agreement shall come into force upon obtaining by P4 a written approval from China Development Bank, and shall remain in force until December 31, 2022, or until P4 ceases to carry out its business activities in any form, whichever occurs later.
The Agreement may be terminated before the lapse of the above deadlines only in the cases provided for therein, and subject to the contractual notice periods.
Due to the fact that the cash flows under the contract will depend on the size of Netia’s future mobile service provisioning business, the Company is currently unable to specifically determine the exact value of the performances under the Agreement. The Company estimates the gross value of incomes and expenditures under the Agreement for the first five years to be approximately PLN 397 million.