EuroTel Praha SALES CHAINS Sales chains continue to gain importance in terms of improving the business policy of EuroTel Praha. These chains´ point of departure are large firms dealing in telecommunications equipment which administer these chains. To a large extent, they ensure that even small firms and firms whose main activity is not based on selling mobile phones have sufficient goods, information and expertise on selling mobile phones. Based on managing these chains, EuroTel cooperates with the most prominent firms in the field of telecommunication equipment sales. See the following tables to learn where these firms and their best business partners are situated. We will also take the liberty of introducing two of the said companies in more detail. Jaroslav Daněk Sales Chains Business Representative ISC COMMUNICATION The company was founded in 1986 in New York, USA, and in the Czech Republic in 1991. It is engaged in the development of software for Computer Telephones and computer telephony; distributes Panasonic and Siemens office and telecommunications equipment, Thomson consumer electronics and GSM/NMT services; sells Panasonic/Technics consumer electronics and white goods; is the business partner to ALCATEL, IBM, and AT&T; supplies software and hardware for ALCATEL, AT&T, ERICSSON, PANASONIC, PHILIPS, SIEMENS, and many other prominent organizations; and is a member of the ISC Group which consists of five companies. Presently, ISC has 50 employees and its annual turnover last year totaled 360 million CZK. In 1996, the company had a network of 500 business partners who sold telecommunications equipment. This fact became an excellently prepared field for closing a strategic contract with EuroTel Praha which turned ISC into one of the main distributors of GSM services in the Czech Republic. Thanks to the experience of the network business partners, the number of mobile phones sold quickly grew (the plan for 500 activations/month was exceeded by 100%) and within three months the company became EuroTel Praha´s largest and main distributor (at present, it can pride itself on the crystal sculpture presented by EuroTel Praha for gaining the first 15,000 customers in 1996-1997) along with its 150 dealers. Since the time GSM services began to be distributed, the company has been establishing a sales chain in two ways. The first way emerged from history and from the network of partners who were offered the chance to sell mobile phones and, if interested, to close a contract with ISC. The company is responsible to EuroTel Praha for its dealers, including payment capability. This fact, along with the 100% marketing support of EuroTel Praha, contributes to the maximal satisfaction of customers. The second way is continuously being developed. Under the Technik Centrum logo, the company is creating a network of sales stores with which it closes franchising contracts. ISC provides the stores with support in terms of financing and marketing, and thus guarantees coverage of the entire Czech Republic with a quality network of mobile phone sales stores. In “its“ stores, ISC offers products (including original accessories) which are distributed by EuroTel Praha and all other product brands distributed by official distributors in the Czech Republic. Thanks to large stock reserves, the company is capable of supplying its partners with any kind of goods within 24 hours and thus satisfy the customer’s needs as quickly as possible. This also applies to service which is provided by all partner sales stores. The option of borrowing a mobile phone contributes to the absolute satisfaction of the customer. Thanks to the computer connection with the EuroTel Praha system, all activation applications since August 1997 have been processed via the so-called Dealer Station which accelerates the customer’s connection to the network so the customer leaves the store in less time and with an already activated telephone. Proof positive of the satisfied cooperation with EuroTel Praha is the fact that ISC has not yet entered into any cooperation with a competing company. Customers can obtain details on the products and resolve all their concerns through the INFO-LINE 02/ 2180 9710 or through the “green line“ (calls free of charge) 0800 1 86522. APOLOGY EuroTel Praha would like to apologize to all its eastern Bohemian customers for publishing an incorrect fax number for the Nová Paka Telecommunications Center in EuroTel Magazine 1/98. The given number, 0434/621856, is a private number. The correct telephone + fax number of the Nová Paka Telecommunications Center is 0434/621855. Thank you for understanding. SETOS The SETOS company was founded in 1992. Since the company began operating, its main thrust has been the supply and assembly of telecommunications equipment. Gradual development lead to the emergence of individual centers and other directions of the company’s business. Telephone distribution completely broke off, a service department arose, and the company’s assembly department was strengthened. The actual sale of telecommunications equipment consists of two components. The first of them is retail which currently represents 12 stores, 7 of which are outside of Prague. Our company’s offices can be found in České Budějovice, Česká Lípa, Liberec, Most, Teplice, and Zlín. Two more stores will be opened in Brno in the near future. All of these stores are aimed at the sale of goods to the end customer. The second component consists of wholesale focused on distribution of not only common telecommunications equipment but also selling GSM. In 1996 when GSM technology hit our market, a special department devoted to the sale of this commodity came about. In addition to mobile phones, services of the leading operator--EuroTel Praha--were also incorporated into it assortment. The beginning of fruitful cooperation with this company dates back to this year. As the coverage of our republic grew thanks to this operator’s signal, individual stores gradually joined in on distributing mobile technology. Despite this, it represented only retail stores until January of this year. This month witnessed a radical change in our company’s position to EuroTel--SETOS became one of the sales chains. This fact enabled many of our constant business partners engaged solely in selling classical telecommunications equipment to become involved in selling services as well. Expanding the number of sales locations reinforced not only our market position in the field of mobile phones, but also helps the number of EuroTel Praha users to continue to grow. Presently, SETOS is not only engaged in selling GSM in its stores, but also gives cover to roughly another 50 distribution locations under itself which offer the telephones and services of the aforesaid operator. It is, of course, in our interest that this number not be final but continually increase on behalf of all parties involved. For that to happen, a special team of specialists was compiled to devote themselves solely to GSM matters and to care for the constant contact with EuroTel and all the sales locations. Another essential element of sales is our service department which takes care of quick repairs and resolves potential complaints in order for us to achieve the maximal satisfaction of our customers. Customers can obtain more detailed information about the products SETOS offers by calling free of charge to the “green line“ at 0800 1 40140 or by visiting our Internet address at www.setos.cz. In conclusion, we would like to assure you that all our employees are ready to provide you with the best services and to see to it that SETOS becomes EuroTel Praha´s forefront partner by bringing you full satisfaction.