iesy Repository GmbH - Irish Stock Exchange

Term Sheet Service Duration
Energy for Broadband
Equipment
Purchase of electrical
power from DTAG
required for the
operation of part of
ish’s network
equipment.
184
Approximate
annual
cost Termination rights
Unlimited €6.9 million for the year This Term Sheet may
2004. The prices were be terminated by ish
fixed until December and DTAG to the same
31, 2004; after an extent as Term Sheet 4
adjustment on the basis with respect to indoor
of a mutual review of installations and partial
the energy installations terminations under
actually in use, there is Term Sheet 4 are
no longer a fixed fee, deemed as partial
but rather remuneration terminations of Term
equal to the payments Sheet 5. With respect to
made by DTAG to its outdoor installations,
supplier plus a handling ish is entitled to
fee of 5%.
terminate this Term
Sheet in whole or, with
respect to individual
installations, to the end
of each calendar month
with a notice period of
6 months. Outdoor
installations can be
terminated by DTAG
with a notice period of
12 months. As part of
the BRN-ish
agreements, DTAG
agreed to early
termination of energy
supplies.
Under the SLAs, ish leased analog fiber links and also operated AMTV radio links and for this operation leased some
space and purchased energy from DTAG under the SLAs. Since 2004, ish has undertaken an AMTV and analog fiber optic
replacement project. Through this project, analog fiber links as well as microwave, satellite and radio transmission capacity
are being replaced by optical fiber links of managed bandwidth.
In this respect, ish and DTAG entered into the BRN-ish agreements (main agreement concluded in 2004 and amended
in 2005 by an additional agreement), under which DTAG installs, makes available and operates a fixed-line broadband and
broadcasting distribution network in the 574 MHz spectrum. Pursuant to the BRN-ish agreements existing analog fiber links
and AMTV radio links will be replaced by new optical fiber links. Since the BRN-ish agreements substitute some of the
services rendered under the SLAs, they provide for the termination of such services. The BRN-ish agreements may be
terminated, without payment of a termination fee, for the main agreement on or after December 31, 2013 and for the
amendment agreement on or after June 30, 2015 with a notice period of 18 months, respectively. Any earlier termination of
the main agreement or the amendment requires the payment of a termination fee. The remuneration for the new network
amounts to approximately €7.2 million for the main agreement and €2.0 million for the amendment per year.
Interconnection with DTAG
To deliver telephony services to ish customers, ish has voice interconnection with DTAG in place. Though the
interconnection agreement with DTAG was terminated as of June 30, 2003, RegTP subsequently ordered the continuation of
the interconnection on the basis of the standard DTAG interconnection agreement with certain changes for an indefinite
period after DTAG failed to reach a new interconnection agreement with ish. This interconnection agreement with DTAG is a
standard agreement as the interconnection regime is heavily regulated.