Eesti Telekom Reports 3rd Quarter and first nine months 2008

Sales revenues of the Eesti Telekom Group (Tallin: ETLAT) in the third quarter of 2008 reached 100.1 million EUR (3rd quarter 2007: 103.1 million EUR).

In the third quarter, the total number of Elion broadband clients with permanent connections increased by 3,600 connections, reaching 172 thousand (30 September 2007: 157 thousand). The company estimates that its market share based on clients with permanent connections is 54%.

In the last quarter, the trend in connection fees for broadband services continued of the clients replacing individual services with comprehensive service packages. Compared to last year, the revenues for the broadband services segment increased 26% from the connection fees for service packages. As a result of a successful marketing campaign, the number of triple-package users increased during the quarter by 7,500, reaching 70.3 thousand as of September 30th (30 September 2007: 44.8 thousand). By the end of the third quarter, Elion had 75.4 thousand IP- and cable television clients (30 September 2007: 48.4 thousand).

To guarantee the continued popularity of the triple package, as of September, Elion is the only television service provider in Estonia to provide digiTV totally in Russian. All the Elion digiTV menus, schedules for the Russian-lanauge channels and most popular Estonian and international channels, screen notices and introduction of the films offered for video rental are also available in Russian. Also many well-known Russian films have been added to the digiTV video rental selection. The goal of the innovations is to make digiTV even more user friendly for Russian-speaking clients and to provide clients with diversified entertainment.

As of October 1st, two new channels were added to the Elion digiTV basic package, diversified the choice of channels in the theme packages, and equalized the monthly fees of all the theme packages, except for the Entertainment theme package to 2.24 EUR per month.

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