Eltel signs a long term contract with TeliaSonera

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Eltel has signed a five year contract with TeliaSonera, covering the Nordic and Baltic regions. The new contract strengthens the close cooperation between TeliaSonera and Eltel, renewing the contracted services currently being offered by Eltel to TeliaSonera, and expanding the geographical scope with new regions in Sweden.

The expected goals in the new contract are quality improvements to ensure high customer satisfaction, efficiency to gain cost reduction through synergies, flexibility to handle decreasing volumes in copper, increasing volumes in fibre, and to stay ahead of changing and increasing customer demands.

The new contract, a frame agreement composed of several delivery contracts, enter into force early 2015, with a phased transition over to the new delivery contracts during 2015 depending on country and services. The new delivery contracts in Sweden are based on a geographical model where Eltel’s Communication segment will be the provider of service deliveries, fault repairs and maintenance in the awarded regions. Following a consolidation of regions for increased synergies, Eltel will be responsible for 13 of the 25 regions in Sweden. In addition Eltel will provide build services in all regions.

Axel Hjärne, CEO of Eltel, comments:

We are proud to once again be selected as a main contractor to TeliaSonera. Through many years we have, together with TeliaSonera, developed the business to meet the market requirements and needs. The coming years will be characterized by further demands on capacity, flexibility and high availability. We are already today prepared to take on these challenges together with TeliaSonera. Through our skilled and dedicated staff we will provide TeliaSonera, and their end customers, with outstanding support and customer experience in an increasingly connected society.

About Eltel Group Corporation

Eltel is a leading Northern European provider of technical services for the Infranet industry – critical infrastructure in the segments of Power, Communication and Transport & Defence – with operations throughout the Nordic and Baltic regions, Poland, Germany and the United Kingdom. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. Eltel has 8,500 employees and sales amounted to EUR 1,15 billion in 2013.

For more information, please contact:

Gunilla Wikman, Investor Relations Manager at Eltel AB
tel: +46 725 843 630
info@eltelnetworks.com

Hannu Tynkkynen, Senior Vice President, Group Communications at Eltel AB
tel: +358 40 3114503
hannu.tynkkynen@eltelnetworks.com

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