SUCCESS STORY OF OMNITEL

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SUCCESS STORY OF OMNITEL
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STRATEGIC CONCEPT
A parthership of business, state ant the public
at large - to create a knowledge-based society.
The latest technology, information and ideas - to
realise this aim. Human personality is the
highest concern of the present day.
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MISSION
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HOW THE COMPANY WAS FOUNDED
Independent communications is the basis of
the democratic society. dr. Juozas
Kazickas
This year Omnitel celebrates the 10th anniversary
of its activities. The company made its first
steps together with the newly-independent state.
One of the founding members of Omnitel, Juozas
Kazickas, was actively involved in the
preparation of state programmes to transform the
Lithuanian economy from the model of planned
economy to a market economy. The founding of
Omnitel was one of his personal contributions to
the development of the Lithuanian economy. The
importance of independent communications with the
world was one of the most important issues to the
state which at that time got involved in
information wars with Russia The idea of Mr
Kazickas to found a telecommunications company
which would be independent from the Russian
dictatorship was approved and encouraged in 1991
by the Lithuanian Government of that time.
Following the establishment of Omnitel,
Lithuania opened its door to the world. We did
this before Latvia, Estonia, Byelorussia, Ukraine
and many other neighbouring countries.
Furthermore, the establishment of a
telecommunications company meant the influx of
huge private capital to Lithuania. The first
major investments into the newly-independent
Lithuanian economy gave this country a real
opportunity to get on its feet. From the very
start, Omnitel became one of the largest
investors into the Lithuanian economy and one of
the largest Lithuanian companies. The founders
of Omnitel set a goal to bring the latest
telecommunications technologies to Lithuania and
provide the broadest possible range of services.
The successfully chosen operational strategy and
the philosophy of a company striving for
leadership allowed fast development of activities
and formed a basis for securing a leadership
position for this company working in the field of
telecommunications.

• In 1991, after Lithuania regained its
  independence, Dr. J. Kazickas founded the
  Company.
• The idea behind this was to establish
  independent communications with the rest of the
  world.
• The first private telecommunications company in
  Eastern Europe.
• One of the first major investors in the
  countrys economy.

Firm initial steps helped to lay down the
foundations for successful activities of Omnitel
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OMNITELS SHAREHOLDERS
Shareholders guarantee basis for viable business
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OMNITEL TODAY

• The largest telecommunications company in the
  Baltic States according to the number of
  customers by the end of September 2003 Omnitel
  had 965.000 subscribers. In June 2003 Omnitel
  became Lithuanias largest provider of
  telecommunications services.
• One of the largest investors - about 1 billion
  Lt into Lithuanian economy.
• Service leader
• widest range of GSM services
• widest choice of data solutions
• broadest experience in the development of
  convergence solutions (Internetmobile)
• largest number of mobile Internet solutions.
• Services and solutions are developed taking into
  account customer needs.
• Technology leader
• - first in Lithuanian to introduce GSM connection
  (1995),
• - one of the first in Europe to provide
  integrated services portal to GSM service users
  (1999),
• - first in Lithuania to introduce WAP protocol
  for data transfer and the first WAP portal
  (wap.omni.lt) (1999),
• - one of the first in the world to introduce GPRS
  (2001), as well ast MMS, Bluetooth technologies
  (2002),
• - the first in the world to launch and operate
  Motorolas latest base stations Horizon II
  (2003).
• - Omnitel is the 4th company in Europe and the
  7th in the world to have implemented on its
  network the latest GPRS technology CS3/CS4
  (2003). GPRS data transfer rates are increased up
  to 70 per cent.

Omnitel has reached its goal and today has the
strongest position on the Lithuanian
telecommunications market. (Leader of
technologies) Omnitel often implements
technologies in Lithuania even before they are
introduced in other countries of the world or
introduces them alongside with other world
operators. (Leading service provider) The
company places great importance to ensuring that
the latest technologies produce real benefits to
Lithuanian people, therefore, it makes a lot of
efforts and works hard to develop specific
services. Currently, Omnitel, as a
telecommunications company, offers the broadest
range of services to its customers. Omnitel now
offers the same services to its customers as
those provided by West European and Scandinavian
mobile operators. (Investments) The company is
currently one of the most important economic
entities in the country. It is one of the largest
investors and tax payers. It has the largest
influence on the formation of the Lithuanian and
Baltic telecommunications markets. (Number of
customers) Omnitels efforts and investments was
a determining factor for the company in securing
a leadership position in the Baltic region. In
terms of the number of customers, Omnitel is
currently ahead of all the Lithuanian, Latvian
and Estonian mobile telecommunications companies.
Today Omnitel is the countrys unsurpassable
leader in the field of mobile telecommunications.

Omnitel is the largest mobile communications
company in the Baltic States
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LARGEST MARKET SHARE
The Lithuanian mobile telecommunications market
by July 31st, 2003
Market according to Omnitel evaluation

• The Lithuanian business segment chooses Omnitel
  the company has secured 70 percent of the
  Lithuanian business market (Baltic Surveys).
• Around 90 per cent of 100 biggest Lithuanian
  companies use Omnitel services.

Lithuanian business leaders rely on services
provided by Omnitel
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OMNITELS TURNOVER
The telecommunications market is one of the most
rapidly changing business areas. Fast advances of
world technologies forces us to observe the
changes and latest developments very closely so
that we would be able to offer the newest
services to our customers. Most up-to-date
services is the key to success in the business of
mobile telecommunications. The company
implements and puts on the market
state-of-the-art solutions on favourable terms.
Rapid development of the companys business
proves that Omnitel is able to keep pace with the
development of world technologies. The company
got on its feet within five years and has been
earning profits since 1996. Last year, the
turnover of the company reached 340 million Lt.
Omnitel is one of the largest tax payers in
Lithuania in 2000, it paid a total of 33.7
million litas to the state budget. This
approximately equals the amount paid out in
pensions in three regions of Lithuania. From the
very first year of operation, Omnitel has been
one of the largest investors in Lithuania. As
stated earlier, investments of Omnitel amounted
to 800 million Lt over the 10 years. Today the
company is among the five largest investors. Its
investments are growing every year (chart). The
main investments are made into the latest
technologies, the development of GSM services and
improvements of the GSM network. Investment
strategies ensure the development of services and
growth of the company.
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OMNITELS INVESTMENTS
Successful investments were the determining
factor for the profitable activities of the
company
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COMMUNICATIONS NETWORK

• Omnitel network reaches the remotest places in
  Lithuania.
• Omnitels network covers 99,7 percent of the
  countrys territory.
• Two-band network GSM (900 MHz) and DCS (1800
  MHz).
• Today Omnitel has more than 700 base stations.
• 3 switching centres.
• Subscribers of Omnitel can use mobile services
  in 81 countries of the world supported by 182 GSM
  operators.
• Our clients can access the internet in 90
  countries around the world, internet via GPRS in
  24 countries.

Investments into network and state-of-art
technologies build a bridge towards 3G
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UNIQUE SOLUTIONS (1)

• In March 2001, Omnitel started providing a new
  service to its business clients Save komanda
  (Your team) which is created on the IN
  (Intelligent network) platform it is a
  possibility to provide the short numbers for the
  companys mobile telephone users and to connect
  them into a unanimous network. Short numbers can
  be used both for making calls within and outside
  the company. A customer may decide to which
  subscribers of his/her company or external
  subscribers a short number will be allocated thus
  the customer may create his or her own team.
• Omnitel seeks to stimulate e-commerce in
  Lithuania. It was the first company in the
  country to offer an e-shop "Muge" (www.muge.lt).
  Now it represents the largest electronic commerce
  portal in Lithuania. As many as 12 shops are
  operating in Muge and a wide range of commodities
  are offered in it. Muge differs from other
  national electronic shops, due to the possibility
  to perform payments for the commodities not only
  by the traditional, but also by the innovative,
  convenient and secure mode of payment. Recently
  a possibility to create and control an
  independent electronic shop "Make an electronic
  shop yourself" was introduced. It allows the user
  to create a shop of his/her own and to test its
  operation. Both hardware and software for this
  project were provided by "IBM Lietuva". In May
  2001, Super.lt was opened in the portal. It is
  deemed to be one of the biggest projects in the
  area of electronic commerce in Lithuania. More
  than 2000 titles of various books and more than
  50 computer games could be obtained here.
  Information on authors, book reviews, possibility
  to participate in discussions are available here
  as well. "Muge" visitors can also participate in
  the commodity auctions, receive the newest
  information about electronic commerce in
  Lithuania and in the world. "Muge" portal is
  visited by over 40 000 people a month. Knowing
  that Internet in Lithuania is used about 8
  population (approx. 280 thousand people) such a
  visiting frequency could be considered as a
  success.

• Omnitels joint portal OMNI.LT the most
  popular multi-channel personalized portal
  providing most convenient electronic
  communication tools, opportunities to manage GSM
  services, information and electronic
  entertainment.
• Muge (www.omni.lt/muge) - one of the first
  e-shops in Lithuania. Now it is Lithuanias
  largest e-commerce portal.
• In co-operation with partners, the first in the
  Baltic region solutions of applying GPRS
  technology in business were introduced
  establishment of mobile managers work places.
  There are more than 10 solutions at present.
• Integrated data transfer solutions (IP VPN via
  fixed connection and via GPRS).
• Mobile Manager solution for mobile information
  management at Vilniaus bankas unique solution
  meeting individual customer needs
• Data transmission networks at companies (largest
  project during six months integrated solution
  for Vilniaus bankas).
• MPLS service to organize networks for big
  companies.
• Mobile marketing solutions.
• OMNI DSL fast Internet with supplementary
  service package (whole solution - fixed IP
  address, e-mailboxes, room for website and
  database).

Latest technologies are the crucial factor for
service development and company success
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UNIQUE SOLUTIONS (2)

• GPRS roaming service was started (we have 18
  partners).
• WLAN is being developed to supplement
  opportunities provided by GPRS (access points at
  Vilnius Airport and FORUM Palace).
• Omnitel was the first in Lithuania to introduce
  a service of following moving objects, using GPS
  satellite positioning system, and their control.
  
• Mobile Secretary free-of-charge information
  on missed calls. More than 15,6 mio missed calls
  were reported in 3 months.
• SIM plius card with particularly broad
  possibilities was introduced, enabling each
  subscriber to personalize services received.
• S.O.S. calls a unique service allowing
  making calls at the expense of the called
  subscriber (sponsor).
• Java mobile games on WAP.OMNI.LT for the first
  time in Lithuania users have an opportunity to
  download a game to their mobile phone.
• New SMS, MMS services, games (Find Me, exam
  results, city security information, learning
  English, MMS greetings, MMS city maps). During
  the 1st six months of 2003 more than 60 unique
  SMS games were developed. Each Omnitel subscriber
  sends 46 SMS messages per month on the average.
• Omnitel introduced a project e-city with to
  transfer city communications to the electronic
  environment.

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PROFFESIONAL STAFF
Omnitel is proud of and values its team. We think
that our business is driven by people rather that
technologies or equipment. It was only thanks to
highly-qualified employees that Omnitel was able
to implement GRPS technology and became one of
the world leaders in this field. We are united
by a common philosophy and one underlying idea
Omnitel must be the best in everything it does.
This has lead to a tradition that only the best
employees stay with the company. We encourage
all initiatives of our employees and provide the
basis for their implementation that is why
Omnitel acts as one team.
Highly-qualified, insightful and motivated staff
have significantly contributed to Omnitels
success. Omnitels staff education
Age of employees
Omnitels management
A team of people united by common ideas and
initiatives contributes towards the success of
the Company
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CLOSEST TO PEOPLE (1)
One of the main reasons behind Omnitels success
is focus on customers needs. We are always aware
of the situation on the market and try guess what
tomorrow will bring. That is why we are able to
offer such services that our customers will
certainly need tomorrow. We try to establish
close contacts with our customers and to provide
services to them in the most convenient way.
That is why we have a wide customer service
network and are constantly expanding it (about
sales outlets). Our clients may choose the most
acceptable method of payment for services
(pre-payment or a permanent contract with
Omnitel) and the most suitable plan (based on
who, how intensively and how frequently uses the
services). There are different methods and
locations for making payments for services
(Omnitel, banks, post office). Omnitel is
implementing promotion programme for loyal
customers called Welfare every year customers
are granted increasing discounts for the
subscription fee and rate of telephone calls).
We value our customers and try to preserve their
loyalty. To make customers feel our constant
attention, we have our Subscriber Service Centre
which provides advice on all issues related to
Omnitel services round the clock. Our customers
feel our attention this reflected in the
constantly growing number of our subscribers.

• According to the data from the survey conducted
  by the market and public opinion research company
  SIC rinkos tyrimai in 2003, Omnitel was the
  first regarding all indicators - corporate image,
  strength, modernity, opinion about the company,
  attractiveness of advertisement and potential
  employer.

We are always close to our Customers
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CLOSEST TO PEOPLE (2)
7 Omnitel representative offices are
operating. 14 showrooms of the company in
Lithuanias 8 largest cities. Omnitel is
represented by 4 partner networks Mikro Visata,
Kom Runa, Inta and Sonex Co. and retail chain
Simas that started operation in summer 2002. By
the end of 2002 the number of SIMAS sales outlets
grew up to 90. The companys services throughout
the country are distributed in about 500 sales
outlets. Extra prepaid service is available at
4.500 sales outlets. Most convenient payment
plans and methods, cheaper calls among group
members My Circle, My Team, Joint Team,
My Network, Business League. Loyalty
programs Gerove, Aciu, Nauda and EXTRA
plius. The most modern in the Baltic States
Alcatel customer care center allows ensuring high
quality of customer service. The customer care
quality is in line with international standards
applied by best operators. About 2,4 million
contacts per month and about 70 thousand per
day Existing systems and software facilitate
effective customer service - clearly
distinguished customer care directions - 90
callers choose automatic service, which allows
ensuring good quality live customer service -
Information is provided live, via automatic
self-service, by SMS and fax.
We are always close to our Customers
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CORPORATE CITIZEN

• Omnitel has always been and will remain an active
  member of business community and corporate
  citizen.
• development of information society in Lithuania
  - initiation of the alliance WINDOW TO THE FUTURE
  to achieve the break point in the internet
  penetration and overcome digital divide already
  launched 29 internet public access points.
• participation in development process of
  information society in Lithuania
• Member of 7 associations, including the
  Lithuanian Council of Information Society under
  the President of the Republic of Lithuania, the
  Information Economic Forum, Infobalt Association,
  the Coordination Council of the Ministry of
  Educations Programme Schools for Information
  Lithuania.
• initiation and sponsorship of computerisation
  projects for education system
• The programme Schools for Information
  Lithuania implemented jointly by Omnitel, its
  founders, dr. Juozas Kazickas Family Fund,
  Gediminas Gruodis, ex-president of Omnitel, and
  the Ministry of Education and Science has been
  launched.
• A sponsorship agreement was concluded with
  Vilnius University where Omnitel will provide
  support to and participate in the establishment
  of VU Career Centre.
• support for Lithuanias science, culture and
  sports
• Support is provided for the countrys largest
  universities, most famous music festivals, the
  Lithuanian National Olympic Committee and the
  Lithuanian Basketball League, the most impressive
  entertainment events.

The path that the company has been following for
10 years and its size and influence allows
Omnitel to have its say not only in business life
but also in the life of the country and its
society. We view Omnitel as a member of the
Lithuanian society which, in addition to
different possibilities and goals, has its
obligations to its country and people. We have
set three tasks for ourselves in the field of our
public activities. 1. We are aiming to promote
the development of the information society in
Lithuania by taking very specific steps. 2. We
devote particular attention and support to the
countrys schools and universities since it is
there that our young society members are
educated. 8 million Lt was allocated to the
programme Schools for Information Lithuania to
set up computer classrooms. A total of 100
Lithuanian schools have already been computerised
and are now introducing Internet access, a common
school network is being developed. Remigijus
Gaška, Advisor to Lithuanian President Valdas
Adamkus, attributes a new significant role to
Omnitel By computerising the countrys schools,
Omnitel will thus help solve the two most
important social problems in Lithuania, i.e.
unemployment and a very considerable lack of
progress of rural population in mastering the use
of information technologies. 3. We are
particularly concerned with the spiritual life of
Lithuania, the development of intellectual
thought and public education projects. Omnitel
is one of the largest sponsors of different
public programmes. For six years, it has been
funding well-known festivals of classical music
and sponsoring sports and other teams. Events
such as Pažaislis Music Festival and Vilnius
Festival, have a major influence on the countrys
spiritual life. Currently, the situation in the
countrys cultural life is far from good,
therefore, our companys position is that the
concern for the spiritual life of the nation
cannot be left only to the state. Omnitel has
always been concerned with the cultural situation
in Lithuania, as it determines the general way of
life of the country, peoples thinking and
self-attitude. That is why we are particularly
focusing on those cultural facts that influence
the cultural context both of our country and the
whole Baltic region.
Omnitel has a say in solving the most important
issues of the societys life and supports
projects of the future
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TODAY WE DEVELOP RELIABLE AND CONVENIENT COMMUNI
CATION
Omnitel is the driving force behind the
revolution of information technologies in
Lithuania. Tim Kennedy, The Washington Times
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Thank you!