Consolidated Interim Report of AS Eesti Telekom Quarter I 2008

The sales revenues for the broadband services segment increased by 10% compared to the same period last year, reaching 48.8 million EUR (1st quarter 2007: 44.6 million EUR). The greatest increase was demonstrated by domestic interconnection services, which increased by 73% during the year. The growth was primarily based on the increases in call transit volumes from the networks of fixed network. Revenues from international call services increased by 27% compared to 2007, primarily as a result of an increase in the number of calls initiated from mobile networks.

Similarly to previous quarters, the trend in broadband services, whereby clients are replacing individual services with packages of integrated services, continued in the last quarter. Compared to last year, the broadband services segment revenues from connection fees for integrated services grew by 35%. The number of triple package users increased by 5,100, reaching 58.6 thousand as of 31 March (31 March 2007: 29.8 thousand). At the end of the first quarter, Elion had 63.2 thousand IP and cable TV clients (31 March 2007: 32.4 thousand). The popularity of the triple package has been significantly enhanced by the offering of supplemental services. Since the introduction of the remote video rental service last year, the selection of available films, TV series and programs has constantly expanded.

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