Press release

29/01/2008

Fonic drops price to 9 cents per minute and text message

Fonic remains true to its claim of being a fair, transparent mobile communications service provider and is lowering its flat-rate price just five months after entering the market: Starting February 1, all Fonic customers will be able to call and text all German telecom networks for just 9 cents per minute and text message. The other advantages Fonic offers, i.e. inexpensive calling without a fixed contract term, monthly fee or minimum charges as well as free mailbox access, will not change. All existing contracts will be automatically switched over to the lower price. “There’s no catch, like administration fees or hidden price increases – we’re just getting cheaper,” promises Björn Flormann, Managing Director of Sales and Marketing. Another new customer benefit: the credit uploaded to the phone card will never expire, even if the customer does not recharge the card for six months or more.

The fact that the regulatory authorities lowered the termination charges for network operators in December has made this price cut possible. Fonic is passing the cost savings directly on to its customers. Björn Flormann explains that this is part of the Fonic concept: "Last year, we entered the market with an extremely low-priced, really fair concept. Transparency is important to us. When our overheads go down, we want our customers to feel the benefits immediately."

Fonic concept gets things moving on the mobile communications market

In September 2007, Fonic made using a mobile telephone more inexpensive and fairer than ever before: Fonic was the first service provider to go below the 10-cent mark with a real flat rate of 9.9 cents, without the otherwise usual fixed costs, such as minimum charges or a monthly service fee. The combination of prepaid and post-paid elements in one flat rate is another benefit: Fonic offers low prices and complete cost control like a discounter, combined with convenient payment using automatic debit that only premium service providers had offered previously. This new pricing concept has already paid off in a big way, and despite the reaction of the competitors, Fonic's success remains unbroken. With its new pricing strategy, Fonic is also strengthening its position as an inspiration for the continued development of the mobile communications market in Germany.

About Fonic

Fonic is a new telecommunications provider with its headquarters in Munich and a wholly owned subsidiary of the Telefonica Group. The provider offers simple, clearly structured and fair telecommunications services at extremely low prices. Fonic uses the O2 Germany network and profits from the Telefonica Group corporate customer prices. Fonic services can be purchased online at http://www.fonic.de or from Lidl supermarkets.

For more information, please contact:
Fink & Fuchs Public Relations AG
Christina Rettig
Tel. 0611 / 74 131-934
Markus Kohlstock
Tel. 0611 / 74 131-75

Fax 0611 / 74 131-21
E-Mail: fonic@ffpr.de
Internet: www.fonic.de/presse


Fonic GmbH
Munich headquarters
Managing Directors: Holger Feistel, Björn Flormann
Local District Court in Munich
Commercial Registry Number 169245

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