Eltel Signs a Renewal of a Fibre Build and Maintenance Agreement with TDC Group in Denmark for Three Years at a Value of Approximately EUR 50 Million

Regulatory News:

Eltel (STO:ELTEL), as a partner in a joint venture with two other companies, has signed a new three-year agreement to build and maintain the fibre network of TDC Group in Denmark. The estimated value of Eltel’s share of the agreement is approximately EUR 50 million.

In October 2011 Eltel announced an outsourcing agreement for the years 2012-2016 to build, connect lines to and maintain TDC’s fibre network. The agreement was signed by a joint venture called Fiber & Anlaeg I/S together with Munck Forsyningsledninger A/S and Petri & Haugsted A/S, in which Eltel was the main partner.

The renewed and signed agreement, which will span from July 2016 to June 2019, will comprise build, connection and maintenance services for TDC’s corporate and private household customers in Denmark. Eltel’s role is planning, project management, logistics, documentation and reporting.

Optic fibre deployment is one of the main trends in fixed communication in order to increase bandwidth in the network by replacing traditional copper with the next generation communication networks. It is estimated that 30 million households in the EU and Norway are to be connected to the internet through fibre connections by 2019. Eltel is the leading service provider in fibre deployment in the Nordic markets, and has the ambition to further grow this position across all its existing markets. The contract with TDC Group in Denmark is another proof of this successful concept.

Peter Uddfors, President - Eltel Fixed Communication comments:

"Eltel’s specialised optic fibre deployment and rollout best practices have shown very positive results in terms of customer satisfaction, efficiency, quality and profitability. The new agreement that our joint venture has been awarded, proves that together with our partners we have succeeded in the previous outsourcing agreement and delivered results according to TDC’s expectations. We are very happy that this cooperation and relationship now has been confirmed with a new long term agreement”.

Carsten Bryder, CTO - TDC Group comments:

"TDC Group is pleased to prolong the partnership with Eltel through the contract with Fiber & Anlæg I/S with the specific purpose of increasing customer satisfaction significantly in the fiber process over the next three years. Improved CSAT (Customer SATisfaction) is the key metric for TDC in our newly launched 2018 strategy, and we are convinced that this prolongation will contribute to us reaching our high ambitions”.

About Eltel

Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. 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. In 2015 Eltel net sales amounted to EUR 1,255 million. The current number of employees is approximately 9,600. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.

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