Having obtained 4 paired and 5 unpaired frequency blocks of 5 MHz each of the 2.6 GHz frequency spectrum, A1 Telekom Austria has confirmed its plans to offer LTE broadband services as soon as relevant permits are issued, which is expected at the beginning of Q4 2010. LTE services will initially be available to customers in Vienna.

Today, the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announced that A1 Telekom Austria, its Austrian operation, has obtained 4 paired and 5 unpaired frequency blocks of 5 MHz each of the 2.6 GHz frequency spectrum for a total of EUR 13.2 million.

The full amount as well as all costs and CAPEX related to the roll out in 2010 are already included in the stated Group guidance for 2010.

The auction was conducted by the Austrian regulatory authority TKK and took place from September, 13 to 20, 2010. 14 paired and 9 unpaired frequency blocks were offered in this auction. The regulatory requirements for these frequencies are the following: To start commercial services and to achieve coverage of at least 25% of the Austrian population by 31 December 2013. The frequencies acquired can be used until end of 2026.

These frequency blocks acquired will allow A1 Telekom Austria to offer broadband services based on 4th generation mobile technology, so called Long Term Evolution (LTE). A1 Telekom Austria will commence commercial services as soon as the relevant permits are issued, which is expected at the beginning of Q4 2010. Services will initially be available in Vienna.

The new tariff “A1 Broadband LTE” will provide customers with speeds up to 150 Mbit/s, will include a download volume of 30 GB and will be marketed at a price of EUR90 per month.

With these steps the Telekom Austria Group further strengthens its market leading position in Austria and continues its strategy to offer innovative services to its customers.