Supplemental Disclosure Material - Ono

In February 2012, we completed the deployment of Docsis 3.0 technology in the Canary Islands and currently we
have the capacity to deliver high-speed Internet (30 Mbps and higher) to over 7 million homes within our network coverage
areas, representing our entire fiber customer base. As of March 31, 2012, over 530 thousand customers subscribed to our
high-speed internet packages (30 Mbps and higher), which represents approximately 37% of our broadband customer base. In
addition, in February 2012, we officially launched a commercial campaign to further improve internet offerings to our
high-end internet customers. Customers subscribing to our 6 to 100 Mbps Internet packages are offered extra 15 Mbps for free
in exchange for a minimum contract term of 12 months.
Television: Television customers decreased by 52 thousand, or 5.5%, to 906 thousand as of March 31, 2012 from
959 thousand as of March 31, 2011. Television customers as a proportion of total residential fiber customers decreased by 2.0
percentage points to 50.6% as of March 31, 2012 from 52.6% at the same date in 2011. The penetration of television services
decreased by 0.8 percentage points to 12.9% at the end of March 2012 compared to 13.6% at the end of March 2011. Our
television customer base has been negatively impacted by several factors: the difficult macroeconomic environment forcing
some customers to drop television services to conserve disposable income; our decision to discontinue the promotion of this
product on a stand-alone basis (in order to encourage the purchase of our bundled packages), and the increased focus on
acquiring customers with telephony and broadband bundles, which enjoy lower churn rates.
In October 2011, we officially launched our next generation TV service (TiVo) to customers within Madrid and
Barcelona and we have made this service available in regions that represent almost 62% of our network as of March 31, 2012.
We expect to further extend this innovative TV service to the remaining regions within our network coverage areas in the
coming quarters. As of March 31, 2012, this product had only been launched for five months and during this period, we
gained over 16 thousand customers.
Telephony: Telephony customers decreased by 11 thousand, or 0.6%, to 1,697 thousand as of March 31, 2012
from 1,708 thousand as of March 31, 2011. Telephony customers as a proportion of total residential fiber customers increased
by 1.1 percentage points to 94.8% as of March 31, 2012 from 93.7% as of March 31, 2011. This service has been relatively
resilient despite the ongoing economic crisis in terms of both customer base (where our telephony penetration decreased by
only 0.2% to 24.1% at the end of March 2012 compared to 24.3% at the end of March 2011) and minutes of use (where
national fixed-to-fixed calls volumes remaining broadly stable, although fixed-to-mobile and international call volumes
remain weak).
Residential ADSL
Residential ADSL services are comprised of services offered through full unbundling of the local loop. These
services provide us with revenues from monthly fees from telephony and broadband internet services and usage charges from
telephony services.
The following table sets forth customers, RGU and revenue from our residential ADSL services and percentage
change over the period.
As of and for the three months
ended March 31, Percentage
2011 2012 change
(unaudited)
Customers (in thousands, except percentage) ............................. 91 91 (0.1%)
RGUs (in thousands, except percentage) ................................. 169 171 1.2%
Revenue (euro in millions, except percentage) ............................ 10 11 10.0%
Residential ADSL revenues increased by €1 million, or 10.0%, to €11 million in the first three months of 2012 from
€10 million in the first three months of 2011, reflecting increases in RGUs, offset in part by declines in variable usage fees
due to the challenging macroeconomic environment. ADSL customers remained flat at 91 thousand as of March 31, 2012
from March 31, 2011. RGUs increased by 2 thousand, or 1.2%, to 171 thousand as of March 31, 2012 from 169 thousand as
of March 31, 2011.
Business Services
revenue.
Business services revenues comprise revenues from SMEs, large accounts, corporations, wholesale and other
Business services revenues, which represented 23.3% of our revenues in the three months ended March 31, 2012,
increased by €15 million, or 20.3%, to €89 million for the three months ended March 31, 2012 from €76 million for the three
months ended March 31, 2011, primarily as a result of the increase in SME and wholesale revenues.
SME services
Revenues from SME services are derived from fees paid by small- and medium-sized enterprises, for voice and data
services, offered individually or as a bundle and incoming interconnection revenues of this segment. We offer SME services
over fiber and ADSL.
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