Current report 15/2016Orange Polska S.A. - Warsaw, Poland22February 2016(translation of Polishversion)title:OrangePolska improves its TV content proposal for IPTV customers.Pursuantto art. 56, clause 1, item 1 of the Law of 29 July 2005 on publicoffering and the conditions for introducing financial instruments to theorganised trading system and on public companies (Journal of Laws of2005, No. 184, item 1539, with amendments), the Management Board ofOrange Polska S.A. (the "Company") informs about improvement of TVcontent proposal for IPTV customers.Orange Polska improves itsTV content proposal for IPTV customers as a step to monetize investmentsin FTTH
Since today TV offer available for our fixed broadband customers on ourIPTV platform will be based on content aggregated by Orange Polska.Aggregation of content means that Orange Polska is purchasing licensingrights for TV channels directly from the broadcasters.Thischange of approach, from resale to content aggregation, enables higherflexibility in the creation of TV offer best suited to customer needsand in addition enables development of additional services includingcatch-up TV, multiroom and multiscreen in the future. As a result OrangePolska improves its competitive position in content proposal which isone of the key elements in our household centered strategy and whichwill help monetization of the planned investments in fibre technology inthe coming years. Quality of the TV offer is one of the most importantfactors for Polish households when choosing operator of fixed services.Package of channels available in the basic subscription has increasedfrom 61 to 91 (of which 25 are HD quality channels) suited for allfamily members.From the financial perspective the change meansthat Orange Polska will now collect all revenues from TV packagespurchased by new IPTV customers and will recognize related costs ofcontent. In the resale model that has existed until today Orange Polskawas sharing revenues from the sale of TV packages outside of the basicpackage. We expect that this change will not only deliver improvedcustomer proposal but will also translate into better financial value.-Over the next 3 years, thanks to the recently announced investment plan,up to 3.5 million Polish families will be within the reach of FTTHnetwork of Orange Polska. I am very pleased that we will be able tooffer this very fast connectivity along with the new TV proposalperfectly fitting demanding customers - said MichaĆPaschalis-Jakubowicz, Orange Polska's board member in charge onmarketing. - By enriching self-made TV offer we are gaining much higherflexibility regarding pricing and selection of channels. We have made aneffort to make our offer a competitive proposal. I am convinced it willbe well received by our customers - he added.IPTV customerbase of Orange Polska at the end of 2015 stood at 184k and increased byclose to 30% year-on-year.At the same time Orange Polska plansto continue to develop its strong partnership with satellite platformnc+ and offer nc+ packages on the top of its packages for IPTVcustomers. Also, TV offer available in DTH technology remains unchanged.It continues to be based on resale of TV content of nc+ and revenuesharing formula.