Supplemental Disclosure Material - Ono

Because we derive a substantial portion of our revenue from residential customers, who may be impacted by these
conditions, it may be (i) more difficult to attract and retain new and existing subscribers, (ii) more likely that certain of our
customers will downgrade or disconnect their services and (iii) more difficult to maintain ARPUs at existing levels. In
addition, we can provide no assurances that a further deterioration of the economy will not lead to a higher number of
non-paying customers or generally result in service disconnections.
Therefore, a weak economy and negative economic development may jeopardize our development and may have a
material adverse effect on our business, financial condition and results of operations.
Demand in future periods is difficult to predict. If demand is lower than anticipated, we may not realize the expected
benefits of providing enhanced services to the Spanish marketplace. Alternatively, if demand is greater than expected, we
may not be able to keep up with it and lose market share.
Bundling broadband internet, television and telephony services is an important part of our strategy. Moreover, if one
of our bundled offerings no longer appeals to our customers, they may discontinue using our bundled or stand-alone services
altogether. In addition, the broadband internet, television and telephony markets are very competitive and any of our new,
enhanced or planned products or services, including residential broadband internet with speeds of up to 100 Mbps and next
generation TV, may fail to achieve market acceptance and the new or enhanced products or services introduced by our
competitors may be more appealing to customers.
Furthermore, in connection with the roll out of broadband internet access enhancements, we rely on third-party
subcontractors. Similarly, we rely on suppliers for our television services, including for our next generation TV platform. We
have contracted with TiVo to be the exclusive software supplier and with Cisco to be the exclusive set-top box supplier.
Customer demand for our product offerings depends on customer satisfaction with the services provided by our subcontractors
and suppliers over which we may have limited control.
If we fail to introduce new or enhanced products and services successfully, our revenues and margins could be lower than
expected.
Part of our business strategy is based on the introduction of new or enhanced products and services. Any of the new
or enhanced products or services we introduce may fail to achieve market acceptance or products or services introduced by
our competitors may be more appealing to customers. If our new product or service offerings are not successful, our
subscribers may decide to discontinue using our services and choose other distribution platforms.
Our strategy includes the nationwide roll-out of high broadband internet speeds (using Docsis 3.0) and the
introduction of next generation TV and we cannot guarantee that these new services, or any other new products that we may
develop in the future, will perform as expected when first introduced in the market. Should these or other new products and
services fail to perform as expected or should they fail to gain market acceptance, our results of operations may be negatively
affected.
Failure to control customer churn may adversely affect our financial performance.
The successful implementation of our business plan depends on our ability to control customer churn. Customer
churn is a measure of customers who stop using our services. Customer churn could increase as a result of:
• Dissatisfaction with the quality of our customer service, including billing errors;
• Customers moving to areas where we cannot offer services;
• Interruptions to the delivery of services to customers over our network and poor fault management; and
• The availability of competing services, some of which may, from time to time, be less expensive or
technologically superior to those offered by us or offer content or features that we do not offer.
Our inability to further decrease churn or an increase in churn as a result of any of these factors can lead to a
reduction in revenue. We have experienced increased levels of churn in recent periods, primarily as a result of the difficult
economic environment in Spain and the competitive environment in the Spanish telecommunications market. There can be no
assurance that this trend will not continue in future periods.
Any negative impact on the reputation of and value associated with our brand could adversely affect our business.
The “ONO” brand is an important asset of our business. Maintaining the reputation of and value associated with this
brand is central to the success of our business, but our business strategy and its execution may not accomplish this objective.
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