QSC-TELE2 joint venture Plusnet to commence operations as scheduled on September 1Cologne, August 23, 2006. The German Federal Cartel Office has approved the establishment of the joint-venture network operating company owned by QSC AG and the German subsidiary of the TELE2 Group, Communication Services TELE2 GmbH. This will enable the company, named Plusnet GmbH & Co. KG, to commence operations as scheduled on September 1, 2006. Plusnet's mission will be to operate a nationwide DSL network on behalf of its shareholders, QSC and TELE2, and to expand it from some 1,000 central offices today to nearly 2,000 central offices by year-end 2007. QSC is contributing its nationwide DSL network to Plusnet, while TELE2 is making a € 50 million cash contribution to finance further expansion of the network. QSC holds 67.5 percent of Plusnet's shares, TELE2 32.5 percent.
Management of Plusnet will be assumed by Dr. Ralf Fischer, who up until now has been heading the managed services department at QSC, as well as Bert Ohliger, in addition to his position as Chief Financial Officer at TELE2 Germany. The company will start with a workforce of 70 people and will be headquartered in QSC's building in Cologne.
The establishment of this network operating company will enable TELE2 to offer its own, affordable full-unbundled telephony and DSL connection product beginning in 2007, with which 50 percent of all German households are to be reached.
Cologne-based QSC AG (QSC) is a nationwide telecommunication provider with its own DSL network, offering businesses and premium residential customers a comprehensive portfolio of high-quality broadband communication options. QSC implements complete enterprise networks (VPNs), operates voice and data services and provides leased lines in a wide variety of bandwidths for business customers. Residential customers benefit from high-quality DSL connections, complete with VoIP applications. In addition, QSC utilizes its own network as the basis for providing high-level upstream products to carriers, Internet service providers (ISPs) as well as strong consumer marketing partners. Following the acquisition of a majority interest in Broadnet AG, QSC has additionally enjoyed access to a microwave network in 42 regions of Germany. QSC operates on a nearly nationwide scale, together with Broadnet AG connects over 140 German cities over its own broadband network and currently employs a workforce of some 650 people. In fiscal 2005, the company generated revenues of € 194.4 million, and following the acquisition of a majority stake in Broadnet AG is forecasting consolidated annual revenues of over € 265 million for 2006. QSC is listed on the TecDAX.
Tele2 is Europe's leading alternative telecom operator. Our mission is to offer cheap and simple telecoms. Tele2 always strives to offer the market's best prices. We have 31 million customers in 22 countries. Tele2 offers products and services in fixed and mobile telephony, broadband and cable TV. Ever since Jan Stenbeck founded Tele2 in 1993, the company has been a tough challenger to the former government monopolies. Tele2 has been listed on the Stockholm Stock Exchange since 1996. In 2005, we reported operating revenue of SEK 50 billion and EBITDA of SEK 6.6 billion.
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