NETCOM AB ANNOUNCES A NEW PRICING STRATEGY FOR COMVIQ OFFERING LOWER COSTS WITH NO MINIMUM SUBSCRIPTION PERIOD - Tele2

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Apr 29, 1999 7:14 PM CET

NETCOM AB ANNOUNCES A NEW PRICING STRATEGY FOR COMVIQ OFFERING LOWER COSTS WITH NO MINIMUM SUBSCRIPTION PERIOD

NETCOM AB ANNOUNCES A NEW PRICING STRATEGY FOR COMVIQ OFFERING LOWER COSTS WITH NO MINIMUM SUBSCRIPTION PERIOD
 
Stockholm and New York - April 29, 1999 - NetCom AB ("NetCom") (Nasdaq : NECS), the leading alternative provider of telecommunication services in Scandinavia, today announced a new pricing strategy for its Swedish GSM operator Comviq. It has developed a completely new pricing strategy for mobile subscriptions in the Swedish market. The new strategy will be available from May 5, 1999 and is based on no minimum subscription period, lower costs, subscriptions based on calling patterns and a more straightforward sales process for dealers.
 
"We have decided to be the cheapest offering in the market, so there's no reason to tie up customers in long contracts. A lower price is the only sensible reason to change from one mobile network to another," says Lars-Johan Jarnheimer, President and CEO of NetCom, which owns Comviq.
 
Until now, mobile telephone users have been forced to commit themselves to an operator for an extended period (as long as three years). But Comviq's new pricing strategy removes the compulsory subscription period and allows customers to choose subscription types reflective of their calling patterns, with the flexibility to change subscription type if their calling patterns change.
 
The call charges and monthly fees for the new types of subscription are substantially lower than previously. Call tariffs as low as SEK 0.40 per minute in the evenings and weekends make Comviq subscriptions the unrivalled cheapest offering in the market, priced low enough to compete with conventional fixed subscriptions.
 
"Comviq's business concept is simple: Make mobile telephony accessible to as many people as possible and at the lowest prices," Jarnheimer explains.
 
The customer's choice
The new Comviq subscriptions give customers the option of choosing their method of service payment, from either prepaid or billed, and also the subscription most appropriate for their own calling patterns.
 
If a customer's calling pattern changes, he or she need only change to a more suitable type of subscription. When a customer changes the subscription, any leftover "prepaid airtime" is transferred to the new subscription. Customers can even change the type of subscription at no charge.
 
The new subscriptions combine the freedom of prepaid cards with subscriptions tailored to particular calling patterns. Based on the prepaid Comviq Kontant card, and combined with changes in previous subscription types and sales methods, the new subscription types allow customers to choose the subscription that suits them best.
 
NetCom AB was formed in 1993 and is a leading alternative provider of telecommunications services in Scandinavia. The company operates in the GSM mobile telephony market under the brand names of Comviq, Tele2 in Sweden and through its listed affiliate, NetCom ASA in Norway and its affiliate Ritabell in Estonia. The Group has operations in the areas of public telecommunications, Internet and data communications services, where the group operates under the brand name of Tele2, in Sweden and its subsidiaries Tele2 A/S in Denmark and Tele2 Norge AS in Norway. The group also operates in the cable-TV service sector. The company is listed both on the Stockholm Stock Exchange under the symbols NCOMA and NCOMB and on the Nasdaq Stock Market under the symbol NECS.
 
CONTACTS:
 
Lars-Johan Jarnheimer Telephone: + 46 8 562 640 00
 
President and CEO, NetCom AB, Sweden
 
Jörgen Latte Telephone: + 46 8 562 640 00
 
CFO, NetCom AB, Sweden
 
Samantha Drover Telephone: + 44 171 408 0020
 
Director of Investor Relations
 
Press Inquiries: Janerik Larsson Telephone: +46 70 762 00 85
 
NetCom's web site is located at http://www.netcom.com
 
Appendix 1 - Comviq - New types of private subscription
 
Comviq Basic:
 
The customer wants to be accessible and able to call without it costing too much each month.
 
Price daytime (Mon-Fri 7 am-7 pm) SEK 5.50/minute
 
Price evenings and weekends SEK 2/minute
 
Price night-time (1 am-7 am) SEK 1/minute
 
Monthly fee SEK 25/month
 
Comviq Evening:
 
The customer makes many calls in the evening.
 
Price daytime (Mon-Fri 7 am-7 pm) SEK 4/minute
 
Price other times SEK 0.40/minute
 
Monthly fee SEK 80/month
 
Evening with prepaid airtime:
 
The customer makes many calls in the evening, for more than SEK 150 a month.
 
Price daytime (Mon-Fri 7 am-7 pm) SEK 5.50/minute
 
Price other times SEK 0.40/minute
 
Monthly fee SEK 150/month applied to airtime charges
 
Daytime with prepaid airtime:
 
The customer calls mainly during the day, for more than SEK 99 a month.
 
Price daytime (Mon-Fri 7 am-7 pm) SEK 3.50/minute
 
Price other times SEK 3.50/minute
 
Monthly fee SEK 99/month applied to airtime charges

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