The change in the shareholder structure in our company fills the newspapers nearly every day. This can be an interesting development for Telekom Austria Group but the picture drawn by America Movil is still somehow unclear and erratic. On the one hand a family enterprise like America Movil could bring in a long term growth strategy instead of the current paralysed look at every next quarter result with the necessity to impress the shareholders. On the other hand its acting around KPN and E-Plus did not show the expected expertise. Statements in the press to change the brand names in our group as a first step seem to be driven more by vanity than logic. In contrary the commitment to a friendly takeover as the only option sounds promising.

Whatever the next steps of America Movil will be, we as your representation have a clear picture what we demand from a new dominant shareholder! The headquarter of Telekom Austria Group has to stay in Austria which would be a perfect starting point for further expansion in Europe and beyond too. TAG employees are ready and capable to enlarge the scope of their work by entering new markets. If America Movil is willing to establish a strong European center in Vienna this can be a great chance for TAG. Furthermore we need substantial investments in our already established markets here in Europe. The Telekom Austria Group must not be a cash cow for other parts of America Movil. The share percentage of ÖIAG has to be kept at 25% plus 1 share minimum and stay on holding level. No increase in share capital shall be done without the consent and the participation of ÖIAG. This preserves the Austrian public authorities the possibility to further influence the development of Austria´s critical information infrastructure.

These points have to be fixed in a syndicate contract with ÖIAG. Besides contractual issues there are soft facts of course which have a big influence on the future success too. The management team must be staffed with professional people who know what management really is instead of business tourists on a fun trip as we experienced with other shareholders in the past. Regional strengths in our markets have to be seen as a chance and an advantage compared to a worldwide uniformity. If all this is given I am optimistic that the engagement of America Movil can have a positive effect on Telekom Austria Group.

We will closely monitor the further development and show up if it´s moving in the wrong direction!

Your employee representative in TAG
Reinhard Grell