Sustainability Report 2009 · PDF file · 2016-05-19Magyar Telekom Sustainability...

Corporate governance and risk management

Magyar Telekom Sustainability Report 2009 1

Sustainability Report 2009

Magyar Telekom Sustainability Report 2009

Contents

GRI content index 3

Letter from the Chairman-CEO 5

About the report 7

I. About the Group 8

II. Vision, Mission, Policies, Strategies 12

III. Sustainability coordination 16

1. Corporate governance and risk management 20

1.1.Corporategovernance 20 1.2Corporatecompliance 23 1.3.Politicalpresence 25 1.4.Suppliers 25 1.5.Riskmanagement 26

2. Customer Relations 28

2.1Managingcustomercomplaints 28 2.2.Informingourcustomers 29 2.3.Customersatisfaction 29 2.4.Marketingcommunication 31

3. Communication without boundaries 33

3.1.ICTproductsforsustainability 33 3.2.Eliminatingthedigitaldivide 33 3.3.Serviceavailability 35 3.4.T-City,thecityofthefuture 36

4. Reducing the environmental footprint 38

4.1.Climateprotection 38 4.2.Waterconsumption 45 4.3.Biodiversity 45 4.4.Emissions 46 4.5.Waste 46 4.6.Environmentalobjectivesandcosts 48 4.7.T-Mobileforthecyclists 49

5. Employees 51

5.1.Talentmanagement 52 5.2.Workplacehealthandsafety 53 5.3.Humanright,equalopportunity 55 5.4.Managingchanges 57 5.5.Humanresourcesindicators 58 5.6.Involvementofemployees 60

6. Investor relations 62

7. Cooperations 64

7.1.Professionalcooperations 64 7.2.Cooperationinenvironmentprotectionandsocialissues 65 7.3.Chartersandprinciples 65

8. Corporate citizenship 67

8.1.Sponsorship 67 8.2.Institutionalpatronage 68 8.3.“MagyarTelekomContributes”Program 68 8.4.Employeesascorporatecitizens 709. Responsible data services 72

9.1.Protectingchildren 72 9.2.Internetsecurity 73 9.3.Addressinglegalandethicalissuesofcontentprovision 73

10. Data protection 75

11. Safe use of mobile phones / Electromagnetic Fields 77

List of abbreviations 79 Assurance Statement 80

GRI(GlobalReportingInitiative)isaninternationalorganizationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreports,thusensuringcomparabil-ityandpromotingtransparencyamongcompanies.ThefollowingtablehelpsthereadertofindtheinformationincludedinthereportattachedtospecificGRIindicators.Youcanreadmoreabouttheguidelinesandtheindicatorsatthefollowingpage:http://www.globalreporting.org/Home/LanguageBar/Hungarian.htm

GRIContentindexReportelementsincoreandadditionalindicatorcategories

GRI section Page

Strategy and analyses

1.1 5-6.

1.2 12-15.

Organizational profile

2.1 8.

2.2 8.

2.3 8-9.

2.4 8.

2.5 8-9.

2.6 8.

2.7 8.

2.8 8-9.

2.9 8-9.

2.10 5-6.

Report parameters

Report profile

3.1 7.

3.2 7.

3.3 7.

3.4 7.

GRI content index Letter from the Chairman-CEO About the report


GRI section Page

Report scope and boundary

3.5 7.

3.6 7.

3.7 7.

3.8 7.

3.9 7.

3.10 7.

3.11 7.

GRI content index

3.12 3-4.

Certification

3.13 7.,80.

Governance, commitments and engagements

Governance

4.1 16-18.,20-22.

4.2 21.

4.3 Notrelevant

4.4 57.,62.

4.5 22.

4.6 24.

4.7 53.

4.8 12-15.,23.,51-52.

4.9 16-18.

4.10 22.

Commitments to external initiatives

4.11 25-26.,38.,40.,42-43.

4.12 65.

4.13 64.

Stakeholder engagements

4.14 14.

4.15 14.

4.16 14.,25-26.,60.,62.

4.17 14.

Economic performance indicators

Core Additional

Indicator Page Indicator Page

Economic performance

EC1 11.

EC2 38.,40.,42-43.

EC3 57.

EC4 11.

Market presence

EC6 26.

EC7 59.

Indirect economic impact

EC8 33-35.,67-70.

Environmental performance indicators

Core Additional


Materials

EN1 43.

EN2 43.

Energy

EN3 40-41. EN5 40.

EN4 39. EN6 40.

EN7 38.,40.

Water

EN8 45

Biodiversity

EN11 45.

EN12 45. EN14 45.

Emissions, effluents and waste

EN16 44. EN18 38-40.,49.

EN17 44.

EN19 46.

EN20 46.

EN21 46.

EN22 46-47. EN24 46.

EN23 46-47.

GRI content index

http://www.globalreporting.org/Home/LanguageBar/Hungarian.htm

http://www.globalreporting.org/Home/LanguageBar/Hungarian.htm



Telecommunication specific indicators

Indicator Page

Internal operation

Investments

IO1 10-11.,34-35.

IO2 Notrelevant

Health and safety

IO3 53-55.,77-78.

IO4 77-78.

IO5 77-78.

IO6 77-78.

Infrastructure

IO7 45.

IO8 45.

Ensuring access

Access to telecommunication products and services

PA1 34-35.

PA2 33-35.

PA3 35-36.

PA4 10-11.,35.,77.

PA5 34.

PA6 33-36.

Access to content

PA7 72-73.

Customer relations

PA8 77-78.

PA9 78.

PA10 29.

PA11 33.,36.,38.,43.,72-73.

Technological applications

Resource efficiency

TA1 42-43.

TA2 36.,42-43.

TA3 42-43.

TA4 42-43.

TA5 73.

Social performance indicators

Core Additional


Freedom of association and collective bargaining

HR5 57.

Child labor

HR6 57.

Forced and compulsary labor

HR7 57.

Security practices

Indigenous rights

Community

SO1 33-35.

Corruption

SO2 23.

SO3 23.

SO4 23.

Public policy

SO5 25. SO6 25.

Anti-competitive behavior

SO7 24.

Compliance

SO8 24.

Consumer health and safety

PR1 33.,72-73.,77-78.

Product and service labeling

PR3 29.

PR5 29-31.

Marketingcommunication

PR6 31. PR7 24.

Customer privacy

PR8 75.

Compliance

PR9 24.

In accordance with GRI (Global Reporting Initiative) year 2006. guide

(www.globalreporting.org)

Environmental performance indicators

Core Additional


Products and services

EN26 38-43.,46.

EN27 47.

Compliance

EN28 24.

Transport

EN29 41-42.

Overall

EN30 48.

Social performance indicators

Core Additional


Employment

LA1 8.,59.

LA2 58.

Labor/ management relations

LA4 57.

LA5 57.

Occupational health and safety

LA7 53-55.

LA8 53-55.

Training and education

LA10 52. LA11 52-53.

LA12 53.

Diversity and equal opportunity

LA13 59-60.

LA14 59.

Investment and procurement practices

HR1 56. HR3 55.

HR2 26.

Non-discrimination

HR4 55-56.



Wecontinuetoconsiderthemitigationofclimatechangeasatopprior-itytaskwithinandoutsideofthecompanyalike.Byusingmanyofourservices,ouremployeesandcustomerscansaveontravelorpapercon-sumption.Video-conferencingisincreasinglywidelyusedbyourstaffs,andthenumberofpeopleregisteredasusersofE-bill(electronicbilling)hasalmostdoubled.BymeansofourHosting(datapark)services,ourcorporatecustomerscanuseICTserviceswithoutprocuringtheirownservers,which,inadditiontodecreasingtheircosts,improvestheutiliza-tionlevelsofserversingeneral,thusdecreasingtheenergyconsumptionperindividualuser,too.

Ourpaperconsumptiondecreasedbymorethan50%inoneyear,whichhadafavorableimpactonourCO2

footprint.In2009,itwasconsideredanoveltythatwestartedtouserenewableenergysourcesinMontenegro,too,byputtingintooperationtwoself-sufficientbasestationsrunningonwindandsolarenergy.IntheframeworkoftheglobalEarthHour,weswitchedofflightsinourshopsthatwereopenthatday,anddrewourcus-tomers’attentiontotheproblemofclimatechangebymeansofaspecialaction.Wealsoorganizednumerousbicycleeventsin2009topopularizethisenvironment-friendlyandhealthymeansoftransportation.

DearReader,

TheMagyarTelekomretaineditsleadingsustainabilityroleinCentralEasternEuropein2009,too:Ourcorporategroupwasranked1stbytheCSR24/7responsiblecorporategovernancesurveyencompassing4countriesoftheregion.Inaddition,forthefirsttimesincethestartofouroperationswewereincludedinasustainabilityindex:asamemberoftheCEERIUSIndexlaunchedbytheViennaStockExchange,weareamongthecompaniesoftheregionperformingbestfromtheaspectsofsustainability.

In2009,MagyarTelekomcontinuedtopursueitssustainabilityactivitiesinlinewithoursustainabilitystrategydespitethedeepeningeconomicandfinancialcrisis.WearepositioningMagyarTelekomasacompanyofferingintegratedmobileandfixed-lineservices,asaresultofwhich,inmostcases,wemanagedtofurtherincreaseourmarketsharesonourmajormarkets.Duetotheimpactoftheadverseeconomictrends,howev-er,lesscustomerssubscribetoourservices,evenatlowerprices.Inordertocounterbalancetheseunfavorableeffects,wecontinuedtostreamlineourorganizationandadoptedcostdecreasingmeasures.Someofthesedecisionsalsopromotetheachievementofourenvironmentalgoals,asforexamplethedecreaseofourpaperandfuelconsumption,leadtoadecreaseinourCO2

emissionintotheenvironment,too.

Letter from the Chairman-CEO



Amongourcolleagues,awarenessofsustainabledevelopmentisexcel-lentandcontinuestoimprove,exemplifiedbythefactthatin2008,80%oftheemployeesunderstoodtheunderlyingconcept,andthisresultincreasedto90%in2009.Wemanagedtoachievethisimprovement,amongotherthings,byprovidingsustainabilitytrainingtonewlyhiredstaffmembers,continuouslyupdatedsustainabilitynews,anintranetpagededicatedtosustainabilityandclimateprotection,aswellasasustainabilitychapterinthecorporatenewsletter.

Westrivetofurthereducateourcustomersbytradition-settingprogramslikeSustainabilityDayheldforthesecondtimein2009.Iamproudofthefactthatinoneyear,thenumberofpeopleinterestedinexemplarysus-tainabilitysolutions,andthusattendingthisinteractivefestival-conferencethatIpersonallyalsofindentertaining,doubled.

Eventhough,asignificantimprovementoftheeconomicandfinancialen-vironmentisnotexpectedin2010either,weshallcontinuetoworkfortheimplementationofthesustainabilitystrategyincourseofthelastcalendaryearitencompasses,too.Ourplansincludeutilizinggreenenergy,furtherdecreaseofournetworks’energyconsumption,aswellasimprovingthesustainabilityawarenessofouremployeesandcustomers.Wecontinuetoseekcooperationwitheveryoneworkingonsolvingissuesofsustainabledevelopment.

Budapest,July15,2010.

ChristopherMattheisenChairman-CEO

WelaunchedanNGOPartnershipProgramin2009,intheframeworkofwhich,westartedtocloselycooperatewithandprovidesupporttothe3winningNGOsinthefollowing3years.Inaddition,wewishtoinvolveourcolleaguesinsolvingproblemsonasociallevel.In2009,closetofivehundredTelekompeopleparticipatedindifferentvolunteerprojects.

Inordertoensurethelong-termprofitabilityandcompetitivenessofthecompany,wearecommittedtotheroll-outofthenewgenerationfixed-linenetworkandthe3rdgenerationmobilenetwork,despitetheunfavorableeconomicandfinancialenvironment.Thenumberofourcustomersusingtheworld’sbest1mobileinternetnetworkincreasedbymorethan60%in2009.Withtheroll-outofthe3Gnetwork,weexpectquicklyincreas-ingcustomernumbersinMontenegroandMacedonia,whilethesalesofbroadbandinternetserviceshasincreasedinbothcountries.Bytheendoftheyear,wereached170000householdsinHungarybyfiberand370000byupgradedcablenetworks.

Besidesdevelopingournetworks,wealsowishtodevelopourcontentservices,forthepurposeofwhich,welaunchedtwonewthematictelevi-sionchannelsin2009.LifeNetworkbroadcastsprogramsabouthealthylifestylesandfamilylife,whileOzoneNetworkcoversissuesofenviron-mentprotectionandclimatechange,whicharetopicsdirectlylinkedtoourobjectivessetinthecontextofsustainabledevelopment.

Ourgoalremainstomakeoursustainabilityperformancevisibleforourcustomersandemployeesalike.

InMay2009,welaunchedalong-terminnovationanddevelopmentprograminthecityofSzolnok.ThepurposeofthecooperationaimedatdevelopingasmartcityistobetteradaptourITandcommunicationtech-nologyservicestoourcustomers’demand,andthusimprovetheusers’qualityoflife.Themainfocusoftheprogram,health,education,securityandentertainment,alsofitinwellwithoursustainabilitystrategy.

OurDigitalBridgeatSmallSettlementsProgramwassupplementedbyanewelementin2009.IntheframeworkofDigitalBridgeFest,myvolun-teercolleaguesdemonstratedat2-6locationspereacheventwhatop-portunitiestheinternetofferstoinhabitantsofdisadvantagedsettlements.Whatismore,theprogramalsoincludedtalentcontests,thewinnersofwhichwereofferedtheopportunitytoperformforliveaudiences.TheInternetforEqualOpportunities(Egálnet)Programorganizedhomepagecontestsforthesecondtimein2009,wherethebesthomepagesreceivedawards.

Forseveralyears,thecorporategrouphasputsignificantemphasisonimprovingitsemployees’satisfactionandhealthandonenablingthemtoestablishtheirwork-lifebalance.In2009,wetookstepstowardsthisdirectionby,amongotherefforts,launchingthecareermanagementsys-tem,wideningtheuseofatypicalformsoflaborforce,aswellasafamilysupportprogram.Oureffortsreceivednumerousrecognitionsin2009:inadditiontobeingranked3rdaspartoftheBestEmployerSurvey,weweregrantedFamily-friendlyWorkplace,Heart-friendlyWorkplaceandHealthyWorkplaceawards.

1 BasedonthesurveyofArcChartin2009

ThishasbeenforsevenconsecutiveyearsthatMagyarTelekomcompilesitssustainabilityreport,thusthisintegratedformofpresentingthecorporategroup’senvironmental,socialandeconomicactivitiesrelatedtosustainabledevelopmentcanbeconsideredatradition.Themainpurposeofpublishingthisreportistomakeourcompany’soperationtransparentforeveryone.In2009,wecontinuedtopursueoursustainabilityactivitiesalongourcurrent3-yearsustainabilitystrategy,therefore,wedidnotchangemostof



thereport’sstructure.Followingtheintroductorychapters,wepresentoursustainabilityachievementsintermsofthekeychallenges.Duetotheirimportance,themajortopics(e.g.partnerships,corporatecitizenship,responsiblecontentprovision,dataprivacy,securemobilephoneusage/EMF)inthechaptertitled“maintainingtrustandcredibility”inlastyear’sreportarediscussedinseparatechaptersthisyear.Thisisthethirdyearthatthereporthasbeenpreparedincompliancewith3rd-generationGlobalReportingInitiative(GRIG+)standards.Weappliedtheinitiative’sstandardsagainatthehighestA+level.Thereportcoversthecalendaryearof2009.

Whencompilingthereport,weputtheemphasisontheinformation’ssignificance,preciseness,reliabilityandbalancedproportions,aswellasthepresentationofinterrelationsinthecontextofsustainability.Atthesametime,westrivetoprovideacomprehensiveoverviewencompassingtheinternationalsubsidiaries,aswell.Thedataincludedinthereportarehistoricallycomparablethroughadjustmentalongthechangesadoptedinthegroup’scomposition.Whensummarizingtheenvironmentalgoals,wehavetakenintoaccountonlytheaffiliatesofthegroupinthestrategy’sbaseyear(2007),whichfurtherimprovescomparability.Atthesametime,thedescriptionsofindividualenvironmentalfactorsincorporatethefiguresofallaffiliatesthatprovideddatainthegivenyear.

GroupmembersfromRomania,UkraineandBulgariahavenotbeenincludedinthereportingprocesssincetheirenvironmental,socialandeconomiceffectsareconsideredinsignificant.

Themostimportantfinancialdataareincludedinthechaptertitled“AbouttheGroup”,whilemoredetailedinformationcanbefoundinMagyarTelekom’sAnnualReport:http://www.telekom.hu/static/sw/download/Magyar_Telekom_annual_report_2009.pdfInordertoensureauthenticity,wehavehadthereportauditedbyaninde-pendentexternalpartythisyear,too:B&PCSRManagement.Theresultsoftheauditcanbefoundinthe“certification”chapter.WeprovidedatatoDeutscheTelekom’sCRreport,too,thus,Pricewater-houseCoopersGermanyalsoauditedtheenergy,wasteandfleetdatausedinthereport.Thesourceofthedatainthereportareasfollows:FinancialdataarefromtheGroup’s2009AnnualReport,IFRSReport,ResponsibleCorporateGovernanceReportandexternalsurveys.

DatarelatedtothesocietyarefromdatasourceswithintheGroup.Theenvironmentprotectiondataarefromamonitorableonlinedataprovisionsystem.

OurSustainabilityReporthasbeenpreparedprimarilytorespondtothedemandofourinvestors,especiallyresponsibleones,however,itprovidesvaluableinformationtoallstakeholders.Thefull-textofthereportisonlypublishedontheinternet,however,uponconsiderationofwhatourcustomersmightprimarilybeinterestedin,ashortenedversionisalsopublishedinaprintedformat,hardcopiesofwhichareavailableattheT-Shopsandoursustainabilityevents.Wecontinuetostrivetothinkandactincooperationwithourstakehold-ers,therefore,weaskourreaderstosendtheircomments,[email protected].

ÉvaSomorjai KatalinSzomolányiChiefHROfficer HeadoftheCorporateSeniorExecutiveacting SustainabilityDepartmentonbehalfoftheMCinconnection ProfessionalSupervisorofthewiththeSustainabilityStrategy GroupSustainabilityStrategyoftheGroup

About the report

http://www.telekom.hu/static/sw/download/Magyar_Telekom_annual_report_2009.pdf


mailto:fenntarthatosag%40telekom.hu?subject=

MagyarTelekom(www.telekom.hu)isHungary’slargesttelecommunicationprovider.MagyarTelekomoffersitsresidentialcustomerstelevision,internetandtelephonyviafixed-lineandmobilenetworks,undertheT-HomeandT-Mobilebrands,thus,isHungary’sonly„doubletriple-play”provider.Atthesametime,asamultiplatformcontentprovider,itlaunchedtwothematictelevisionchannelsin2009,inadditiontoorigo’sinternetcontentprovision.M-Factoryoptimizestheinternetcontenttomobiledevices.UndertheT-Systemsbrand,theGroupoffersinnovativesolutionsbasedonstate-of-the-artnetworktechnologiesandcost-efficient,reliableITapplications,inadditiontothetraditionalfixed-lineandmobileservices.

Origolaunchedtwothematictelevisionchannels,whichaddresstopicsnotcoveredbyotherplayersofthetelevisionmarket.LifeNetworkexploressubjectmattersrelatedtohealthylifestyles,familylifeandpreventivehealthcare,whileOzoneNetworkcoversissuesofsustainabledevelopment,environmentprotectionandclimatechange.ThechannelsareavailableaspartofT-Home’stelevisionservicepackagesandthroughotherdigitalandanaloguecablenetworks,too.

MagyarTelekomisamajorityownerofMakedonskiTelekom,Macedonia’sleadingfixed-lineprovideranditssubsidiary,themarket-leadermobileserviceprovider,T-MobileMacedonia.MagyarTelekomalsoholdsmajorityinterestinCrnogorskiTelekom,Montenegro’slargesttelecommunicationserviceprovider,whichoffersfixed-line,mobileandinternetservicestoitscustomers.

About the Group


MagyarTelekom,foundedin1991(thencalledMatáv),wasprivatizedin1993.ThedomesticandinternationalinitialpublicofferingofMagyarTelekomsharestookplaceinBudapestandinNewYorkin1997.MagyarTelekom’smajority(59.21%)ownerisMagyarComHoldingGmbH,whichissolelyownedbyDeutscheTelekomAG.AsofMarch01,2006,MagyarTelekom’sregisteredcorporatenameisMagyarTelekomTelecommunicationsPublicLimitedCompany,abbreviatedasMagyarTelekomPlc.TheoperationalterritoryoftheaffiliatesisHungary,Macedonia,Montenegro,Romania,BulgariaandtheUkraine.TheheadquartersoftheGroupislocatedatBudapest(Krisztinakrt.55).

YoucanlearnmoreabouttheGroupanditsforeignsubsidiariesat:http://www.telekom.hu/about_magyar_telekom/magyar_telekom_group

In2009,thefollowingchangestookplaceinthestructureoftheGroup:T-KábelmergedintoMagyarTelekomPlcwitheffectfromSeptember30,2009.

ISHintegratedhealthcareITproviderwasacquired.TelekomNewMediaintegratedtelecommunicationapplicationsproviderwasacquired.

MoreinformationabouttheGroup’sproductsandservicescanbefoundattheCompany’shomepage:http://www.telekom.hu/servicesandthroughthecustomerservice.

MagyarTelekom’sownershipstructurein2010-ben(accordingtotheApril30,2010statusoftheshareregistry)showedthefollowingbreakdowninpercentages:

YoucanreadmoreaboutMagyarTelekom’sownershipstructureat:http://www.telekom.hu/investor_relations/magyar_telekom_shares/ownership_structure

MagyarTelekomGroup’sheadcount(FTEonDecember31,2009)is10828.

I. About the Group

foreign institution (17.58%)

domestic institution (6.31%)

nominee (12.48%)

domestic individuals (4.48%)

treasury shares (0.14%)

other (0.05%)

MagyarCom Holding GmbH (59.21%)

Ownership structure of Magyar Telekom

http://www.telekom.hu/about_magyar_telekom/magyar_telekom_group

http://www.telekom.hu/services

http://www.telekom.hu/investor_relations/magyar_telekom_shares/ownership_structure

http://www.telekom.hu/investor_relations/magyar_telekom_shares/ownership_structure

About the Group


YoucanreadmoreaboutthehistoryoftheCompanyat:http://www.telekom.hu/about_magyar_telekom/company_history

2 T-MobilecontinuestooperateasanindependentbrandwithinMagyarTelekom(asof

03.01.2006.)3 Egertel’srelevantdataareincludedamongthoseofMagyarTelekom(ItoperatesinanMT-

ownedbuildingandonMT’snetworketc.)4 EmitelmergedintoMagyarTelekom’sfixed-linenetworkin2007.5 BCNcontinuesitsoperationsaspartofKFKISystemIntegrationasof2008.6 ICONprovideddataforthefisttimein2007,itsdataareincludedamongthoseofBCN.7 INTEGRISprovideddataforthefirsttimein2007,itsdataareincludedamongthoseofBCN.8 IQSYSprovideddataforthefirsttimein2007,itsdataareinlcudedamongthoseofBCN.9 IQSYSprovideddataforthefirsttimeonbehalfoftheformerINTEGRISin2008,aslegalsuc-

cessorofIQSYSandT-SystemsHungary.10KFKI-LNXprovideddataforthefirsttimein2007,itsdataareincludedamongthoseofBCN.11KFKIprovideddataforthefirsttimein2008onbehalfoftheformerBCN,ICONandKFKI-LNX,

astheirlegalsuccessor.12T-SystemsHungaryprovideddataforthefirsttimein2007,itsdataareincludedamongthose

ofBCN.13T-KábelcontinuesitsoperationswithinMagyarTelekom(asof09.30.2009.)14T-OnlineHungary’saccessbusinessmergedintoMagyarTelekomin2007,whileitsweband

contentbusinesscontinuesitsoperationsunderthe[origo]Zrt.nameasanaffiliateofMagyar

TelekomGroup.15Cardnetwassoldin2006.16PRO-Mprovideddataforthefirsttimein2008.17Dataplexprovideddataforthefirsttimein2008.18Mfactoryprovideddataforthefirsttimein2008.19origoprovideddataforthefirsttimein2008.20ThedataoftheMontenegrinCrnogorskiTelekomareunderthenameTCG.21ThedataofMakedonskiTelekomandT-MobileMacedoniaareunderthenameMakTel.

Inorderforthecomprehensiveunderstandabilityofthediagrams,onemustneedtoseeMagyarTelekomGroup’sstructure,whichchangedincourseoftheyearsinquestionasfollows:

Changes of the Group

2005 2006 2007 2008 2009

MagyarTelekomPlc.

MagyarTelekomPlc.

MagyarTelekomPlc.

MagyarTelekomPlc.

MagyarTelekomPlc.

T-Mobile2 - - - -

Egertel3 - - - -

Emitel Emitel4 - - -

BCN BCN BCN5 - -

- - ICON6

- - INTEGRIS7 - -

- - IQSYS8 IQSYS9 IQSYS

- - KFKI-LNX10 KFKI11 KFKI

- - T-SystemsHungary12 - -

T-Kábel T-Kábel T-Kábel T-Kábel13 -

EPT EPT EPT EPT EPT

T-Online T-Online14 - - -

Cardnet15 - - - -

- - - PRO-M16 PRO-M

- - - Dataplex17 Dataplex

- - - MFactory18 MFactory

- - - Origo19 Origo

TCG20 TCG TCG TCG TCG

MakTel21 MakTel MakTel MakTel MakTel

http://www.telekom.hu/about_magyar_telekom/company_history

About the Group


Consumer Services Business Unit (CBU)December

31, 2008.

December 31,

2009.

Change (%)

Fixed line operations

Voice services

Totalvoiceaccess(1) 1,921,486 1,740,619 (9.4)

Payphone 16,274 14,788 (9.1)

Totaloutgoingtraffic(thousandminutes)(1) 3,550,076 3,135,892 (11.7)

BlendedMOU(outgoing) 151 159 5.3

BlendedARPA(HUF) 3,650 3,630 (0.5)

Data products

RetailDSLmarketshare(estimated)(2) 54% 58% n.a.

Cablebroadbandmarketshare(estimated)(2) 18% 19% n.a.

NumberofretailDSLcustomers 404,878 435,558 7.6

Numberofcablebroadbandcustomers 127,683 152,878 19.7

Numberoffiberopticconnections 0 7,247 n.a.

Totalretailbroadbandcustomers 532,561 595,683 11.9

BlendedbroadbandARPU(HUF) 5,103 4,427 (13.2)

TV services

NumberofcableTVcustomers 422,936 406,841 (3.8)

NumberofsatelliteTVcustomers 5,338 156,142 2,825.1

NumberofIPTVcustomers 28,496 67,430 136.6

TotalTVcustomers 456,770 630,413 38.0

BlendedTVARPU(HUF) 3,537 3,280 (7.3)

Consumer Services Business Unit (CBU)December

31, 2008.

December 31,

2009.

Change (%)

Mobile operations

Mobilepenetration(3) 121.8% 117.7% n.a.

MobileSIMmarketshare(2) 43.9% 43.4% n.a.

Numberofcustomers(RPC) 4,648,323 4,343,672 (6.6)

PostpaidshareintheRPCbase 29.1% 35.2% n.a.

MOU 127 126 (0.8)

ARPU(HUF) 3,397 3,164 (6.9)

Postpaid 7,265 6,454 (11.2)

Prepaid 1,862 1,670 (10.3)

Overallchurnrate 16.9% 27.5% n.a.

Postpaid 12.1% 15.1% n.a.

Prepaid 18.8% 33.1% n.a.

Ratioofnon-voicerevenuesinARPU 15.2% 16.7% n.a.

Averageacquisitioncost(SAC)pergrossadd(HUF) 6,813 7,680 12.7

Numberofmobilebroadbandsubscriptions 182,687 326,384 78.7

Mobilebroadbandmarketshare(2) 53.4% 45.9% n.a.

Population-basedindoor3Gcoverage(2) n.a. 65.4% n.a.

Magyar Telekom Group: summary of operating statistics

Business Services Business Unit (BBU)Decem-ber 31, 2008.

Decem-ber 31, 2009.

Change (%)


Voice services

Business 110,389 100,172 (9.3)

Managedleasedlines(Flex-Comconnections) 6,037 4,745 (21.4)

ISDNchannels 288,338 270,466 (6.2)

Totallines 404,764 375,383 (7.3)

Totaloutgoingtraffic(thousandminutes) 798,157 656,372 (17.8)

MOU(outgoing) 191 178 (6.8)

ARPU(HUF) 5,457 5,162 (5.4)

Data products

NumberofleasedlineInternetsubscribers 617 558 (9.6)


NumberofwholesaleDSLaccess 196,776 161,270 (18.0)

NumberoftotalDSLaccess 228,581 193,628 (15.3)

RetailDSLARPU(HUF) 13,743 12,712 (7.5)

Mobile operations

Numberofcustomers(RPC) 713,469 775,912 8.8

Overallchurnrate 5.8% 8.0% n.a.

MOU 325 336 3.4

ARPU(HUF) 7,655 6,458 (15.6)

Numberofmobilebroadbandsubscriptions 81,339 102,161 25.6

Ratioofnon-voicerevenuesinARPU 20.2% 23.6% n.a.

Averageacquisitioncost(SAC)pergrossadd(HUF) 9,092 8,280 (8.9)

About the Group


Businessvalueproducedanddistributed:

Direct business value produced 2008 2009

Revenues(totalrevenue+shareofafter-taxearningsofaffiliatesandjointventures) 674,397millionHUF 643,880millionHUF

Business value distributed

Operatingcosts(directlyrevenue-relatedexpenditure+netotheroperatingcosts) 304,358millionHUF 293,018millionHUF

Employeesalariesandbenefits(personnelexpenditure) 100,320millionHUF 101,918millionHUF

Paymentsduetocapitalinvestors(paiddividend+netfinancialearnings) 107,360millionHUF 109,865millionHUF

Paymentsduetothestatebudget(incometax) 27,698millionHUF 21,529millionHUF

Communityinvestments(donations,institu-tionalpatronage,volunteerwork,education)* 1,256millionHUF 671millionHUF

Withheld earnings (earnings after tax + depreciation – paid dividend) 134,661 million HUF 117,550 million HUF

Note:InbracketstheappropriatelinesoftheIFRSprofitandlossstatementaregiven(withtheexceptionofcommunityinvestmentsbecausethereisnosuchlineintheP&Lstatement)

Substantial financial support from the State 2007 2008 2009

Taxbenefitused 355millionHUF 294millionHUF 1,137millionHUF

Deductionfromtaxbaseduetodonations 180millionHUF 398millionHUF 98millionHUF

TaxgainbytaxableincomedecreaseduetoR&D 12millionHUF 60millionHUF 53millionHUF

Youcanreadmoreaboutthecompany’sfinancialperformanceinMagyarTelekom’sAnnualreport:http://www.telekom.hu/static/sw/download/Magyar_Telekom_annual_report_2009.pdf

MacedoniaDecember

31, 2008.

December 31,

2009.

Change (%)


Voice services

Fixedlinepenetration 20.9% 18.5% n.a.

Totalvoiceaccess 429,544 372,015 (13.4)

Payphone 1,692 1,218 (28.0)

Totaloutgoingtraffic(thousandminutes) 1,258,294 969,538 (22.9)

Data and TV services

RetailDSLmarketshare(estimated) 81% 83% n.a.


NumberofwholesaleDSLaccess 17,008 18,751 10.2

NumberoftotalDSLaccess 98,866 128,368 29.8

Numberofdial-upcustomers 5,910 1,813 (69.3)

Numberofleasedlinecustomers 129 228 76.7


Mobile operations

Mobilepenetration 110.5% 116.1% n.a.

MarketshareofT-MobileMacedonia 59.4% 56.4% n.a.

Numberofcustomers(RPC) 1,379,191 1,381,094 0.1


MOU 96 104 8.3

ARPU(HUF) 2,586 2,678 3.6

MontenegroDecember

31, 2008.

December 31,

2009.

Change (%)


Voice services

Fixedlinepenetration 28.0% 26.3% n.a.

Totalvoiceaccess 182,235 176,890 (2.9)

Totaloutgoingtraffic(thousandminutes) 563,139 424,544 (24.6)

Data and TV services


NumberofwholesaleDSLaccess 0 0 n.a.

NumberoftotalDSLaccess 38,956 54,983 41.1

Numberofdial-upcustomers 17,455 5,184 (70.3)

Numberofleasedlinecustomers 188 191 1.6


Mobile operations

Mobilepenetration(4) 185.6% 208.7% n.a.

MarketshareofT-MobileCrnaGora(4) 36.1% 36.7% n.a.

Numberofcustomers(RPC) 506,519 531,457 4.9


MOU 105 96 (8.6)

ARPU(HUF) 2,886 2,459 (14.8)

(1)IncludingVoIPandVoCable.(2)DatarelatestoMagyarTelekomPlc.(3)DatarelatestomobilepenetrationinHungary,includingcustomersofallthreeserviceproviders.(4)DatapublishedbytheMontenegrinAgencyforElectronicCommunicationsandPostalServices(EKIP)basedonthetotalnumberofactiveSIMcardsintheprevious3months.



Vision, Mission, Policies, Strategies

Vision:Asamarketleadingtelecommunicationsandinformationtechnologypro-vidertheMagyarTelekomGroupworksforthebetterfutureoftheentiresociety.Itofferstopquality,efficiencyandinnovativeknowledgetoitscustomers.Ineveryrespect.

Mission:Asthemarketleader,weuniquelybringtogethertheneedsofourcustom-erswiththelatesttechnology,whetherincommunications,informationorentertainment.Everythingwedostartswiththecustomer.Ourgoalistoturnmoderncommunicationsintoexperiencewhichmakesadifferenceinpeople’slives.WeareheretomakeMagyarTelekomeverybody’sfavoriteserviceprovider.


Magyar Telekom Group’s Environmental Policy

TheMagyarTelekomGroup,asleadinginfocommunicationsserviceproviderofCentralEuropeandleadingplayeroftheHungarianeconomy,iscommittedtopreservingthenatureandtheenvironmentandtoimprovingthestateoftheenvironment.Weareawarethatclimatechangeisoneofthemostformidablechallengesofenvironmentprotectionsoweidentifiedwiththisproblemandsetsuchgoalsinourprogramswhichalsoservethecauseofprotectionoftheclimate.Incompliancewithourmissionandoursustainabilitystrategyandbearinginmindtheroleweintendtoplayintheinformationsociety,wefeelresponsibilityforharmonizingourgoalswiththebasicprinciplesofsustainabledevelopment.Beyondcomplyingwiththeregulations,wearemakingeffortsbothatgroupandmembercompanyleveltomeethalfwaythegeneralsocialandenvironmentalexpectations.Ourgoalistoimproveourenvironmentalperformancewhilereducingourenvironmentalimpact.Throughthedevelopment,implementationanduseofourtelecommunicationsandinformationtechnologyserviceswegivethesociety,ourcustomersandalsoourselvestheopportunitytoimprovethegeneralefficiencyoftheenvironmentprotectionefforts.Ourinformationandcommunicationservicescarryconsiderablepotentialforthereductionofgreenhousegasemissions.Byactivelycommunicatingthisfacttoourstakeholdersweenablethemtobemoreenvironment-conscious.Inordertomeetourcommitments:Weoperateagroup-levelenvironmentalcoordinationprocessandimplementandoperateanMSZENISO14001standardenvironment-centeredmanagementsystemattheorganizationswithmajorimpact.Inourdevelopmentswetakeintoconsiderationenvironmentalaspectsandsocialexpectationsalike.Environmentalguidelinesandconsiderationsplayamajorroleinourprocurementandinvestmentpoliciesandwealsoexpectoursuppliersandsubcontractorstocomplywiththem,thusencouragingtheirenvironment-consciousdevelopment.Inthedevelopmentofourservicesweseektoreducetheuseofenergyandotherresources,toanalyzeourproductsfromanenvironmentalaspectandtocertifyandcommunicatetheirpositiveenvironmentalimpact.Wewishtomaketheprotectionoftheenvironmentanimportantcauseforeveryemployeeandcustomer,soweregularlyprovideinformationaboutourenvironmentprotectionactivitiesandwealsodevelopingandoperatinganenvironmentalinformationsystem.Intheseenvironmentprotectionactivitiesanddevelopmenteffortswecooperatewiththestakeholdersandreleaseannualreportsaboutourachievementsfortheirinformation.Weshareourknowledgeandexperienceswithourpartners,thushelpingthemimplementtheirownprograms.ThemanagementoftheMagyarTelekomGroupdeclarethattheypursuetheiractivitiesincompliancewiththeguidelinesofthisenvironmentalpolicyandalsoexpecteveryemployeetodothesame.Budapest,January26,2006

CorporateStrategy–WearebuildinganewMagyarTelekomOurstrategyhasbeenelaboratedinawaytoenableustoexploitthebenefitsofourwidecustomerbaseandexistingcompetences,aswellassignificantlyimproveourefficiency,whilecapitalizingongrowthopportunities.Inordertopursuethesegoals,MagyarTelekomassumedanew,customer-focusedoperatingmodelasofthebeginningof2008,andparalleltotheintegrationofthefixed-lineandmobilebusinessunits,establishednewmanagementandbrandstructures.Asafollow-uponintegration,theactivitiespursuedbytheformerAlternativeBusinessandCorporateDevelopmentBusinessUnitandtheGroupStrategyDirecto-rateweremergedundertheChiefStrategyandCorporateDevelopmentOfficer’sleadershipasofSeptember2009,asaresultofwhichstrategyandcorporatedevelopmentarecloselylinked.TheGroup’sintegrationeffortsservetheimprovementofservicequalityandefficiencybasedonsynergiesofferedbyjointoperation.Inadditiontoretainingourcustomerbase,asoneofourmajorassets,wecreatenewrevenuesourcesbyenteringnewmarkets,andapplynewbusinesssolutions.Ourmid-termgoalistostrengthenourcorebusinessandtheestablishmentofnewcapabilitiesinthecontextoftraditionaltele-communicationareas,whilestrengtheningourexistingcompetencesandmarketpresenceonmassmarketsofnewservices.WearebuildinganewMagyarTelekomwiththeaimtoestablishtheCompany’smid-andlong-termcompetitivenessinresponsetothenegativeeffectsoftheeconomiccrisisthatburdened2009.Intheworseningeconomicenvironment,itisofutmostimportanceforMagyarTelekomtomaintaintheCompany’sprofitability,efficiencyandcash-flowgeneratingcapability.

QualityPolicyQualityPolicyofMagyarTelekomGroupapprovedin2005wasrenewedin2009thatisavailableonthefollowingwebpage:http://www.telekom.hu/static/sw/download/minosegpolitika_en.pdf

II. Vision, Mission, Policies, Strategies

http://www.telekom.hu/static/sw/download/minosegpolitika_en.pdf




Strengthening the communication means available to societyItisimportantforMagyarTelekomthatinadditiontofollowingtechnologi-caldevelopmenttrends,thebenefitsofferedbyITCsolutionsbeavailableforeveryone.TheGroup’sobjectivesincludethecontinuanceanddevel-opmentofitsprogramsaimedateliminatingthedigitaldivide,theprovi-sionofICTservicesofspecialrelevanceinthecontextofsustainability,aswellasthecommunicationofthesustainabilityeffectsoftheproductsandstrengtheningcustomers’senseofresponsibility.

Decreasing the environmental footprintTelecommunicationproductsandservices,whileenablingrawmaterialandenergysavings,alsoburdentheenvironment.TheGroupaimstofurtherdecreasethisburden.Thekeytaskisfightingclimatechange:theCompanyhassetthetargetofdecreasingitsCO2

emissionby10%by2011.MagyarTelekomalsowishestohelpcustomerstodecreasetheiremissions,whileitsupportstheminadaptingtotheclimatechange.

Human resources management“Committed,professionalsreadytotaketheinitiativearethekeysuccessfactortoMagyarTelekomGroup’sbusinesseffectiveness.”(MagyarTelekom’sHRVision).Inthisspirit,theGroupstrivestofurtherdevelopitshumancapital,attractandretaintalent,aswellasensureequalopportuni-tiesandpromotetheestablishmentofwork-lifebalance.

Maintaining trust and credibilityInordertomaintainsocialtrust,everycompanymustconductitsbusinesstransparentlyanduponconsiderationofallstakeholders’expectations.Inlightofthisconcept,MagyarTelekom’sgoal,amongothers,istofurtherstrengthentheprotectionofchildrenfromadultcontent,aswellastojoinandtostartmajorsustainabilityinitiatives.

Customer relationsTheCompanyaimstoincreaseawarenessamongitscustomersaboutitseffortsmadeinordertopromotesustainabledevelopment.Therelevantsetofobjectivesinclude,amongothers,popularizingelectronicproductandserviceorderplacementsolutions,anincreasingqualityofserviceprovisiontocustomers,aswellasfamiliarizingcustomerswiththeGroup’ssustainabilityinitiatives.

SustainabilityStrategy2008–2011

Thekeyobjectiveofthe2008-2011strategyistomaketheleadingsustainabilityroleachievedbyMagyarTelekomsofarvisiblefortheemployeesandthecustomers,too.Thisobjectiveisproposedtobereachedthroughtasksarrangedin34themesalongsidethefollowingkeychallenges:

Corporate governance and risk managementMagyarTelekomstrivestomaintaintransparentandaccountableoperations,whileensuringcompliance,anti-corruptionandefficientriskmanagement.Itsgoalsinclude,forexample,thedevelopmentofitscompliancesystems,aswellastheimprovementofitsenvironmentalandsocialperformance.

Environment

Economy Society

Sustainabledevelopment

Harmony of socialand environmentalinterests

Harmonyof economic andsocial interests

Harmony of environmental andeconomic interests

Connection of sustainability with different interests



StakeholdersThestakeholdersofMagyarTelekomGroupincludeallthegroupswhichhaveanimpactonachievementofthecompany’sobjectivesorhaveavestedinterestinit(Figure46).TheCompanyidentifiedthroughreviewingitsmanagementsystemsandbenchmarkauditsthescopeofstakehold-ersandkeepscontinuouscontactwiththemtoensurethattheirinterestsaretakenintoconsiderationinthecourseofitsoperations.

TofindinformationonimportantissuesdiscussedwithstakeholderpleasereadmemorialsofpreviousSustainabilityRoundtables:http://www.telekom.hu/society_and_environment/events/Sustainabil-ity_Roundtable_Discussion

The10thSustainabilityRoundtableheldonJune22,2009addressedcurrentkeytopics.The11thRoundtablewilltakeplaceonJune21,2010,andshallfocusoncommunicationofsustainability.

HR StrategyOneofthekeychallengesofthesustainabilitystrategyisHRmanage-ment,thusMagyarTelekom’sHRStrategyalsoplaysanimportantroleinachievingoursustainabilityobjectives.ThetargetssetaspartoftheHRStrategywereachievedinapro-ratedmannerin2009.

1.Inthecontextofthe3-yearefficiencyimprovementplan,thepersonnelexpendituresavingsachievedin2009wereonplan.

2.In2008,theperformancemanagementsystemwasextendedtocoverallMagyarTelekeomPlcemployees,thusthecoverageofemployeesbytheperformancemanagementsystemis100%atthemothercompany.

Group-levelroll-outisinprogress. –Aculturedevelopmentprojectwassetup,whichhaselaborated,and

stilldoes,measuresinseveralworkstreamspromotingaperformance-basedcorporateculture.

–Anewcareermanagementsystemwasestablished.

AtthetimeofcompilingthisReport,theseniormanagementoftheMagyarTelekomGrouphasgivenfullauthorityandresponsibilitytothechiefHRofficertocoordinatetheimplementationoftheSustainabilityStrategyapprovedbythemanagementearlier,whiletheCorporateSustainabilityDepartmentisresponsibleforprofessionalcoordinationoftherelevantefforts.

Output factors outpayments infrastructure „bads” (e.g. pollution) communication

Infocommunication products and services

Impacts risk efficiency result market position brand value preception

Econ

omy

Soci

ety

Envi

ronm

ent

Structural approach of sustainability

Impacts domestic and international regulations, requirements shareholder, investor, customer demands local, regional and international expectations, trends market and competition frameworks

Input factors financial resources human resources natural resources material resources information resources

Magyar Telekom Group responsibility knowledge creativity innovation

http://www.telekom.hu/society_and_environment/events/Sustainability_Roundtable_Discussion

http://www.telekom.hu/society_and_environment/events/Sustainability_Roundtable_Discussion



3.In2008,theproceduresandmethodologiesofprovidingsuccessioninmanagerialandkeypositionswereelaborated.In2009,internalcandidateswereappointedto63%ofthesejobs,whichsignificantlyexceedstheplanned50%.

4.WeprovidedevelopmentactivitiestomanagersintheframeworkoftheManagementinChange–ChangeinManagement(4VProgram).

Theprogramconsistsofmandatoryandoptionalmoduleswithadefinedmandatorynumberofcreditstobeachievedeachyear.Theprogram’sstructureismainlyaimedatcreatingsupportivemanagersandtostrengthenmanagers’„peoplemanagement”skills.

The4Vprogramsuccessfullycontinuedin2009.Theobjectiveswereachieved,andmanynewelementswereintroduced.

5.Intheautumnof2008,theEverydayHeroesemployerbrandcampaignstarted,intheframeworkofwhichanewInternshipProgramwasintroducedandseveralmeasures(e.g.atypicallaborforcecapacitypilot,canteeninvestmentprojects,improvementoftheworkingenviron-ment,renewalofachievementrecognitionsystemsetc.)wereadoptedwiththepurposeofimprovingemployeesatisfaction.Asaresultofthemeasures,MagyarTelekomGroupwasranked4thbyengineeringstudentsand7thbyeconomiststudentsattheMostDesiredCompanySurveyof2009,significantlyexceedingthetargetedtop15ranking.

6.HRcustomersatisfactionmeasurementsystem’sstructureelaboratedin2008

Taskaccomplished.WiththeinvolvementofGroupStrategy,thesystemwasputintooperationin2009.TheHRcustomersatisfactionindex’srespectivetargetsfor2009and2010weredefined,andthetargetfor2009wasachieved.

Support strategyCorporatesustainabilityalsoencompassescorporatecitizenship,thusMagyarTelekomGroupelaboratedanew,mid-termsupportstrategyin2009,inwhichitlaysdownthenewprinciplesofitssupportactivities.Accordingtothenewstrategy,thecompanypursuedabetterfocusedsupportactivityin2009.Sponsorshipwasprimarilyaimedatcultureandsports,whiledonationstoNGOsfocusedonsustainability,preventivehealthcareandpopularscienceprojects,includingeducation.

Katalin Szomolányi HeadofDepartmentCorporateSustainabilityDepartment

– What do you do for sustainability stakeholder relations?–Inthecontextofsustainability,wecanidentifythefollowingstake-holders:investors,regulators,customers,employees,communities,NGOs,suppliersandpartners,aswellasthefuturegenerations.Astoresponsibleinvestors,theminimumrequirementistohaveaSustain-abilityReport,preparedalongasetofguidelines,withthepurposeofprovidinginformationofinterestforthewidestpossiblerangeofstakeholders.Wealsoseekopportunitiesoftwo-waycommunication,likeroundtablediscussions,eventsorourSustainabilityDay.BasedonsixyearsofexperiencewiththeDigitalBridgeProgram,intheframeworkoftheJövő/MenőProgram,weofferedthechanceevenforpeoplewhodonotworkforourcompanytojoinourvolunteerworkinitiatives,whichofferouremployeestheopportunityofteambuildingorjustaweekendget-together.– How do you contribute to sustainable development when you are not at work? –Thisisaprofessionthatcanbedonerightonlyifitsprinciplesprevailinyourfree-time,too.WhenIbuiltuptheSustainabilityDay,IdidnotrelysolelyuponmyworkcontactsandIdidnotworkonitexclusivelyduringworkinghours.IattendtheaforementionedvolunteerworkinitiativesandtheDigitalBridgeProgrameventsbothasanorganizerandasaparticipant,evenifIhavetogiveupmyweekendfree-timeforthat.Ialsowriteablogandanchoraradioshowonthistopic,Ideliverpresentationsperrequest,andIalsoconsideritimportantthatthiscredomanifestinmyeverydayactivities:Icollectwasteselectively,useenergy-efficientlightbulbs,driveahybridcarandusuallytravelbycarpool.IkeepaneyeonCégmérce(CorporateCritic),too,buymostlybiofood,andIevenhaveafairtradeT-shirt.Nowadays,Iexperimentwithasoapnut,whichistheproduceofaplantinIndia,andcanbeusedasanenvironment-friendlywashingpowderthatissoftonyourskin.SinceIhaveputittouse,Idonotapplyanychemicaldetergents,waterorfabricsofteners,thus,Idonotburdentheenvironmentwithchemicalsandplasticwaste.

Katalin Szomolányi

Sustainability coordination

In2009,sustainabilityactivitiesweregovernedonGrouplevelaccordingtothestructurebelow(comparedto2008,thechangeisthatbymergingtheAlternativeBusinessandCorporateDevelopmentBusinessUnitandtheStrategyDirectorate,theStrategyandCorporateDevelopmentareawasestablishedandtheComplianceareawastransferredtotheChairman-CEO’sdirectarea):

Group-levelcoordinationcontinuestobeprovidedbytheGroupSustain-abilityCoordinationCouncil.Youcanreadmoreaboutthedetailsintheyear-2008SustainabilityReport:http://www.telekom.hu/static/sw/download/fenntart_jel_2008_eng.pdf.


III. Sustainability coordination

Chairman-CEO’s field ofresponsibility

Chief Human Resources Officer’s field of responsibility

COO, Consumer ServicesBusiness Unit

COO, Business ServicesBusiness Unit

COO, Alternative Businessand Corporate DevelopmentBusiness Unit

Chief Technical Officer’sfield of responsibility

Chief Financial Officer’sfield of responsibility

Compliance

Corporatecitizenship

Sustainabilitycoordination

Training anddevelopment

Equal opportunity,diversity

Strengtheningcustomers’consciousness

Energy-efficientand cost-efficientbusiness solutions

Innovation

Energy-efficientnetworks

Eliminating thedigital divide

Eco-efficientoperations

Supply chainmanagement

The Group-level coordination of sustainability activities has taken the following form as of January 01, 2008

Board of Directors Supervisory BoardManagement Committee

Executive in charge

Group Sustainability Coordination Council

Head of GSD

http://www.telekom.hu/static/sw/download/fenntart_jel_2008_eng.pdf



Regulationofsustainabilityactivities,Groupsustainabilityprocess,environmentprotectioncoordinationTheGroupsustainabilitycoordinationprocessencompassesallsustain-ability(includingenvironmentprotection)activitiesofMagyarTelekomGroup.Theinterrelationsamongtheactivitiesoftheprocessaredemon-stratedbythechartbelow,whichhasalreadybeenpublishedbefore.

HowsustainabilityactivitiesarebuiltuponeachotherThehierarchyofMagyarTelekomGroup’ssustainabilityactivitiesdidnotchange.Accordingly,thechartbelowisunchanged,itsdetailedexplana-tioncanbefoundintheSustainabilityReport2008.

Group policies, trends, stakeholderexpectations

Groupsustainabilitycommunications

Group sustainability strategy

Che

ckin

g th

e fu

lfillm

ent o

f tas

ks

MC

Consumer Services BU Business Services BU

Group center and service center

Info-communications products services

Activities of the sustainability process

Sustainability management process

1. Operational framework of sustainability process 1.1. Regulations 1.2. Determination of the guidelines, strategy 1.3. Working groups/ Specialist teams

1.4. Control, feedback

– demands– requirements– trends– best practices

– stakeholders

2. Process management 2.1. Group policies 2.2. Group sustainability targets

3. Implementation of tasks 3.1. Development tasks 3.2. Operative tasks 3.3. Preparation for operation disorders

4. Communication stakeholdersstakeholders

Group sustainability processes, environmental coordination



Uponconsiderationofthecorporategroup’svisionandpositionassumedintheinformationsociety,MagyarTelekomconsidersitastrategicgoaltohaveaninformationsecuritymanagementsystemandcompliancewiththeISO27001standard.Inthisspirit,thecompanyregularlysurveysitsinformationassets,analyzesthreatsandrisksattachedtoinformationsecurity,aswellasconsciouslystrivestodecreasesuchexposure.

Inprofessionalareasthathavesignificantenvironmentalimpact,theGroupintroducedISO14001environmentfocusedmanagementsystemsandhadhadcertifiedsince2001.Afterwardsthesesystemswereinte-gratedandextendedtowholeMagyarTelekomPlc.andtogrouplevelbyinvolvingcertifiedsubsidiariesin2008.Thesystematicoperationofthesystemsandtheexploitationofdevel-opmentopportunities,throughperiodicalaudits,ensurecontinuousimprovementoftheprofessionalareas’environmentalperformance.

Harmonizationamongtheenvironmentaleffortsmadebythenumer-oussubsidiariesofdiverseactivities,aswellastheenforcementoftheprinciplesandtheachievementofthegoalssetforthaspartoftheGroupEnvironmentProtectionPolicyandtheimplementationofthestrategyareensuredbyoperationandregularreviewoftheGroup’ssustainabilitymanagementprocessalongitselementsdeterminingenvironmentalcoordination.

Organizations of Magyar Telekom Group certified according to the ISO 14001 standard:

Affiliate / Organization Certification date

MagyarTelekomPlc November14,2001.

KFKIZrt. July04,2006.

IQSYSZrt.(Budapestsite) June29,2006.

DataplexKft. November03,2008.

Pro-MZrt. May11,2009.

T-MobileMacedonia January08,2004.

TheGroupSustainabilityCoordinationCouncil(GSCC)heldregularses-siontomonitortheaccomplishmentofthetasksin2009,too.AccordingtotheCEO’srelevantdirective,theaccomplishmentofopera-tiveenvironmentprotectiontasksaretheresponsibilityoftheorganiza-tionsconcerned,asbefore.TheGSCCprovidesregularupdatesaboutitsmeetingstothetopexecu-tivesoftheorganizationsandaffiliates,aswellastheChiefOfficersinchargeoftheBusinessUnits,thusenablingthemtoexercisetopmanage-rialcontrol.

MagyarTelekomGroup’stopmostmanagementbody,theManagementCommittee,isinformedatleastonceayearabouttheaccomplishmentstatusoftheGroupsustainabilitystrategy,aswellasaboutmajorsustain-abilityactivities,achievements.

ManagementsystemsMagyarTelekomhasdifferentstandardcertifiedmanagementsystemsinplaceatitsorganizationsandaffiliatesformorethan10years.Asaresult,theCompanyhadhaditsqualityassurancesystemcertifiedaccordingtotheISO9001standardin2002,aswellasitsenvironmentalsystemaccordingtotheISO14001standardanditsinformationsecuritysystemaccordingtotheISO27001standardin2008inanintegratedmanner.

WiththeintroductionoftheISO9001-certifiedqualitymanagementsys-tems,MagyarTelekom’sgoalistoprovidestandardqualitytoitscustom-erswithoutregardtotimeandplaceandtocontinuouslyimproveservicequalityingeneral.Inaccordancewiththeprinciplesofqualitymanage-mentsystems,theGroupregularlymeasures,analysesitsactivitiesandcontinuouslyimprovesitsoperationsandqualitymanagementsystem.



1. Corporate governance and risk management

1.1. Corporate governance 201.2 Corporate compliance 231.3. Political presence 251.4. Suppliers 251.5. Risk management 26



1.1. Corporate governanceTheprofessionalsphereandtheinvestorsrequirepubliccompanieslistedonthestockexchangetostateclearlywhatgovernancemodeltheyuseandhowthisisappliedinthepractice.BeingacompanylistedbothontheBudapestStockExchangeandtheNewYorkStockExchangeitishighlyimportantforustomeetthisrequirementandtherelevantstatu-toryandstockexchangerequirements.Toensuretransparencyofthecompany’smanagementinformationaboutMagyarTelekom’scorporategovernanceisavailableonthefollowingwebsite:http://www.telekom.hu/investor_relations/corporate_governanceInformationongeneralmeetingsisavailableonthefollowingwebsitehttp://www.telekom.hu/investor_relations/corporate_governance/gen-eral_meetings

1. Corporate governance and risk management

Imre GellaiHeadofOfficeChairman-CEOOffice

– What do you do for Magyar Telekom to be a sustainable company?–Oneofthemaintasksofmyfieldofresponsibilityistosupportdecision-makingbodiesinawaythattheybeincompliancewithstatu-toryandstockexchangeregulation.Bycomplyingwiththerelevantrules,wecanmakethecompany’soperationtransparentandimproveoursustainabilityrankings(whicharepartlybasedoncorporategovern-anceassessment).Sustainability-targetedinvestmentfundsinvestintocompaniesthatmeetcertainsustainabilityrequirements,i.e.whosesustainabilityrankingsarehigh.Thesustainability-consciousnessofourteamiswelldemonstratedbythefactthatatourlatestteambuildingexercise,wevolunteeredtobuildanornamentalwellatTiszadorogmaaspartoftheJövő/MenőProgram.WethoughtthatifTelekomsupportstheprogramasalong-termstrate-gicpartner,wecanalsocontributethroughvolunteerworktothiseffort.

– How do you contribute to sustainable development when you are not at work? –Ithink,I’mjustatinywheelinahugemachineandmypersonalcon-tributionissosmallthatitcannotbetranslatedintofigures.Atthesametime,Iamalsosurethatifwedonotstartchangingindividuals’attitudetowardstheenvironmentandsociety,thenthesituationwillconstantlygrowworseandworse,andweallwillbeaccountableforthat.Inthisspirit,Icollectwasteselectively,Itrynottolosesightofseeminglyinsig-nificantthingsandteachmykidstodothesame.Andwhenthetimecomesthatweneedtojoinforces,likeincaseofthefloodsofthespring,IcallMagyarTelekom’sDonationLine,anddefinitelynotfromoneoftheofficephones.

Imre Gellai

http://www.telekom.hu/investor_relations/corporate_governance

http://www.telekom.hu/investor_relations/corporate_governance/general_meetings

http://www.telekom.hu/investor_relations/corporate_governance/general_meetings



BoardofdirectorsUnderHungarianlawtheBoardofDirectorsisresponsiblefortheman-agementofthecompanyandittakesdecisioninallsuchmattersinwhichtheshareholdersdonothaveexclusivepowerofdecision.TheBoardofDirectorssubmitsannualreportstotheshareholdersattheannualgeneralmeetingandquarterlyreportstotheSupervisoryBoardonthemanagement,assetsandbusinesspolicyofthecompany.TheArticlesofAssociationofthecompanyapprovedbythesharehold-ers’meetingrulesthattheBoardofDirectorshastobecomposedofminimum6,maximum11members,whomtheAnnualGeneralMeeting(AGM)electsforaperiodofthreeyears.TheBoardofDirectorsmeetsatleastfourtimesayear.TheBoardofDirec-torshasquorumifatleastsixmembersarepresent.Eachboardmemberhasonevote.TheBoardadoptsitsresolutionsbysimplemajorityvote.

Members of the Board of Directors on December 31, 2009:

Name Main position

ChristopherMattheisen Chairman_CEO,MagyarTelekomPlc.

IstvánFöldesi Internationalbusinessconsultant,Director,InnoHungaryTechnologyCenter

WolfgangHetlinger Internationalactivitiesandservices,DirectorinchargeofCentral-Europeanissues,T-SystemAustria

MihályGálik

Universityprofessor,headofUniversityDepartmentMedia,Marketing-communicationandTelecommunicationDepartment,CorvinusUniversityBudapest,FinancialManage-mentFaculty

GuidoKerkhoff MemberofDeutscheTelekomAG’sBoardofDirectorsinchargeoftheSouth-East-Europeansubsidiaries’management

ThiloKusch ChiefFinancialOfficer,MagyarTelekom

MechthildeMaier DeutscheTelekom’sDiversityManagementSeniorVicePresident

FrankOdzuck CEO,ZwackUnicumPlc.

Dr.RalphRentschler MemberoftheBoardofDirectors,T-Com/T-Home(DeutscheTelekomAGdivision)

Dr.SteffenRoehnCIOMemberofDeutscheTelekomGroup’sBoardofDirectors,inchargeoftheITissuesrelatedtoDeutscheTelekom’sintegratedmass-marketapproach

TheAnnualGeneralMeetingheldonApril07,2010electedthenewBoardofDirectorsfor3years.CurrentmembersoftheBoardofDirectorsarelistedatourhomepage:http://www.telekom.hu/investor_relations/corporate_governance/board_of_directors

ManagementCommitteeIncompliancewiththecompany’sArticlesofAssociationandtherulesofprocedureoftheBoardofDirectors,in2000theBoardofDirectorsestab-lishedtheManagementCommitteewithpowerstopursueitsactivitiesincompliancewiththeannualbusinessplan.

Members of the Management Committee on December 31, 2009:

Name Main position

ChristopherMattheisen Chairman-CEO

ThiloKusch ChiefFinancialOfficer

IstvánMaradi ChiefTechnologyandITOfficer

IstvánPapp ChiefOfficer,BusinessServicesBusinessUnit

RóbertPataki ChiefStrategyandCorporateDevelopmentOfficer

ÉvaSomorjai ChiefHumanResourcesOfficer

JánosWinkler ChiefOfficer,ConsumerServicesBusinessUnit

ThecurrentmembersoftheManagementCommitteearelistedatourhomepage:http://www.telekom.hu/investor_relations/corporate_govern-ance/management_committee

SupervisoryBoardTheSupervisoryBoardsupervisesthemanagementofthecompanyandensuresthecomplianceofthecompanywiththeHungarianstatutoryregulationsandthecompany’sowncorporategovernanceregulations.TheSupervisoryBoardstudieseveryreporttobesubmittedtotheannualgeneralmeeting,theproposalsoftheBoardofDirectors,thefinancial

reportsandtheproposalforthedistributionofthenetincome.TheSupervisoryBoardmakesreportsabouttheseissuesfortheAGMthathasmandateofdeliberatingtheannualreport.IncompliancewiththeArticlesofAssociationofthecompany,theSuper-visoryBoardhasminimum3,maximum15members,whoareelectedbytheAGMforatermofthreeyears.TheWorkers’CouncilappointsonethirdoftheSupervisoryBoardmembers,incompliancewiththeprinci-plesonemployeerepresentation.TheSupervisoryBoardhasquorumifatleasttwothirdofthemembersarepresent.AccordingtolawmajorityoftheSupervisoryBoardisindependent.

Members of the Supervisory Board on December 31, 2009:

Name Major position

LászlóPappChairmanofSupervisoryBoard,ProfessorattheElectronicEngineeringFacultyoftheUniversityofTechnologyandEconomics,Budapest

AttilaCsizmadia SeniorAdvisor,FinanceMinistry

KonradKreuzer ChairmanofE.ONHungary’sBoardofDirectors

IstvánKoszorú ChairmanofMagyarTelekom’sCentralWorksCouncil

MartinMeffert CountryManager,HungaryT-HomeHQ,DeutscheTelekomAG

JánosIlléssy ManagingDirector,LebonaKft.

SándorKerekes DeputyRectorofCorvinusUniversityBudapest,DirectoroftheUniversity’sInstituteofEnvironmentalSciences

Mrs.ZsoltVarga BPMManager,CostumerServiceDirectorate,ConsumerServicesBusinessUnit,MagyarTelekom

GyörgyVarju ChairmanofCBU’sWorkCouncil,memberoftheCentralWorkCouncil

TheAnnualGeneralMeetingheldonApril07,2010electedthenewSupervisoryBoardfor3years.CurrentmembersoftheSupervisoryBoardarelistedatourhomepage:http://www.telekom.hu/investor_relations/corporate_governance/super-visory_board

http://www.telekom.hu/investor_relations/corporate_governance/board_of_directors

http://www.telekom.hu/investor_relations/corporate_governance/board_of_directors

http://www.telekom.hu/investor_relations/corporate_governance/management_committee

http://www.telekom.hu/investor_relations/corporate_governance/management_committee

http://www.telekom.hu/investor_relations/corporate_governance/supervisory_board

http://www.telekom.hu/investor_relations/corporate_governance/supervisory_board


AuditCommitteeTheAuditCommitteeisinvolvedintheselectionandappointmentoftheindependentauditorandreviewstheservicesprovidedbytheexternalauditor.ItisalsotheresponsibilityoftheAuditCommitteetoapprovetheauditandnon-auditservicesprovidedbytheexternalauditor.TheAuditCommitteereviewstheannualfinancialreportsofMagyarTelekom,withobservanceoftheresultsoftheauditsandtheauditsoftheindependentexternalauditor,thereportstobesubmittedtothestockexchangesandthefinancialauthorities,aswellasthereportsoftheinternalaudit.TheAuditCommitteemeetsasnecessary,butatleastonfouroccasionsayear.ThemembersoftheCommitteeareelectedbytheAGMofthecom-panyfromamongtheindependentmembersoftheSupervisoryBoard.

Members of the Audit Committee on December 31, 2009:

Name Main position

JánosIlléssy ChairmanoftheAuditCommittee,ManagingDirector,LebonaKft.

SándorKerekes DeputyRectorofCorvinusUniversityBudapest,DirectoroftheUniversity’sInstituteofEnvironmentalSciences

LászlóPap ProfessorattheElectronicEngineeringFacultyoftheUniversityofTechnologyandEconomics,Budapest

TheAnnualGeneralMeetingheldonApril07,2010electedthenewAuditCommitteefor3years.CurrentmembersoftheAuditCommitteearelistedatourhomepage:http://www.telekom.hu/investor_relations/corporate_governance/au-dit_committee

RemunerationComitteeTheRemunerationCommitteemakesproposaltotheBoardofDirectorsfortheemployment,dismissal,remuneration,determinationandevalua-tionofthebonustargetsofthechiefexecutiveofficerandthechiefoffic-ers.TheRemunerationCommitteemeetsatleastthreetimesayear.ThemembersoftheRemunerationCommitteeareelectedfromthemembersoftheBoardofDirectors.


Members of the Remuneration Committee on December 31, 2009.

Name Main position

FrankOdzuck ChiefExecutiveOfficer,ZwackUnicumNyrt.

Dr.RalphRentschler MemberoftheBoardofDirectors,T-Com/T-Home(DeutscheTelekomAGDivision)

GuidoKerkhoff MemberofDeutscheTelekomAG’sBoardofDirectorsinchargeofSEEsubsidiaries

MembersoftheRemunerationCommitteewerere-electedattheBoardofDirectorsmeetingheldonApril21,2010.

IncentivesandevaluationoftheperformanceoftopexecutivesTopexecutives(ChiefExecutiveOfficer,ChiefOfficers)arepaidvariablepay(bonus)asperformanceincentive.BonustargetsarelinkedtotheCompany’sperformancethroughthePerformanceManagement(PM)system.

Ontopoftheshort-termincentive,theinterestsoftopmanagementarealignedwiththoseoftheownersbymeansofaso-calledMid-termIncen-tivePlan.

TheRemunerationCommittee(3memberselectedbyMagyarTelekom’sBoardofDirectors)makesproposalsastoboththeannualtargetsandtheevaluationoftheirperformance,aswellasmonitorstheperformanceoftopexecutivesthroughouttheyear.UponconsiderationoftheproposalsmadebytheRemunerationCommittee,theBoardofDirectorsadoptsdecisionsregardingtheevaluationoftopexecutives’performance.TheBoardofDirectorsmeetsfourtimesayear–theperformanceoftheprevi-ousyeartakesplaceatthefirstmeetingheldduringtheyear.

55%oftopexecutives’salaryisfixed,while45%isvariablepay.Theannualbonusispayableproratedtotheevaluatedperformanceofthein-dividualtargets,setatthebeginningoftheyear,andderivedfromMagyarTelekomGroup’sstrategictargets.Nobonusispayable,ifperformanceisbelowacertainminimallimitdefinedinadvance.Incaseofover-achiev-ingthetargets,additionalbonusispayable,theextentofwhichcannotexceed50%ofthebonuspayableupon100%performance.Theframe-workofbonustargetsetting(bonusextent,structureandmaximalextentofadditionalbonus)isdefinedbythestrategicinvestor’scompensationguidelines(DeutscheTelekomGlobalCompensationGuidelines).

Inadditiontotheannuity-basedbonus,paidasshorttermincentive,in2004,acash-equivalentmanagementincentiveplanwasintroduced,whichincludesthree-yeartranchesstartingeachyear,asamid/long-termincentivefortopexecutives.Thisstrictly-regulatedprogramlinkedtotheMTelekomshareprice,rewardstopmanagementonthebasisofthethree-yearperformanceofsuccessparametersdefinedannually.Theextentofthisincentiveelementisdeterminedasaratiooftheannualon-targetsalary(basesalaryplusbonuspayableupon100%performance),inequalratiosforeachtopexecutive.ThelasttrancheoftheprogramstartedasofJanuary01,2009.Nodeci-sionhasbeenmadeyetaboutanycontinuanceorreplacementoftheprogramin2010.

MiddlemanagementandexpertsinchargeofmeetingcompliancetargetsreceivedirectincentivesthroughthePMsystemtoachievethesaidtargets.Atthesametimetherelevantpolicyentitlesseniormanage-menttodecidenottopaybonus,ifcertainmanagerialornon-managerialemployeeshinderormakeitimpossibletoachievecertaintargets.

http://www.telekom.hu/investor_relations/corporate_governance/audit_committee

http://www.telekom.hu/investor_relations/corporate_governance/audit_committee



TheCompanyhasreceivedreportsaboutunethicalconductduringtheyear,whichhavebeenverifiedand,ifnecessaryinvestigated.Incaseswherefraudwasdetected,thenecessaryremedialactionshavebeentaken.MagyarTelekomdisclosescorruptioncasesandresponsetothosecasesasitisrequiredbytherelevantlawsandregulations.See20FfinancialstatementsfiledwiththeSEC.

Ontopoftheabove,in2009,theCompanyheldcoursestobeattendedinpersonbymembersofMagyarTelekomGroup’sareas,atboththemothercompanyandtheHungarianandforeignsubsidiaries,exposedtotheriskoffraud,addressingissuesofanti-corruptionandethicalbusinessconduct.Thesecoursesarecontinuedin2010.

1.2 Corporate complianceMagyarTelekomGroup’sCorporateComplianceProgramhasbeenelaboratedwiththeaimtoensurethatMagyarTelekomGroupconductitsbusinessinfullawarenessofandcommitmenttotherelevantstatutes,inharmonywiththestrictestpossiblebusinessethicalstandards.Inorderforthat,directiveshavebeenissuedaddressingthepotentialcompliancerisks,andtheproceduresthereindefinedareinplace.Therelatedtrainingcoursesarecontinuouslyprovidedtoemployees.Clearprocessesforthewhistle-blowing,investigation,monitoringandremedyofsuspectedcasesofnon-complianceareinplace.

TheCorporateComplianceProgramissupervisedbytheGroupCompli-anceDirector.TheGroupComplianceDirectorreportsdirectlytotheAuditCommittee,andisindirectcooperationwiththeBoardofDirectors,theSupervisoryBoardandthemanagement.TheComplianceProgramfocusesontheCodeofConduct.

Incourseof2009,100%ofbothMagyarTelekomPlc’sorganizationalunitsandsubsidiariestookpartintheprocessofriskanalysis.Asaresultofthesurvey,acomprehensiveauditwasconductedabouttherisksofpotentialfraudulentacts,thefindingsofwhichweresubmittedtotheCompany’sAuditCommittee.

In2009,theCompanylaunchedcomprehensiveonlinetrainingcoursesonGroup-levelregardingdocumentandinformationmanagement,aswellashandlingconfidentialdata,aimedattargetgroupsofemployeesselectedthroughriskanalysis.Theonlinetrainingaddressingbasiccom-plianceinformationwascompletedin2009.92%ofinviteescompletedthecourse22.Trainingofnewlyhiredcolleaguesiscontinuous.

Melinda ModokDirector,GroupSustainabilityDepartment

– What do you do for Magyar Telekom to be a sustainable company?–Welaunchedacomplianceprogramthreeyearsago,withthepurposeofmakingeveryMagyarTelekomemployeecommittedtoethicalbusi-nessconduct.Telekom,asalargecorporation,isamajorplayeronthemarket,soitdoesmatterwhatbusinessconductitdemonstrates.Wedeemitimportantthatourcolleagues,bethememployeesorleasedlaborforce,attendtrainingcoursestolearnaboutthevaluesinquestion.Forme,sustainabilityalsomeansthatthecompanydoesnotgrowwiththesolepurposeofachievingbetterindicatorsandexpansionrates.Businessattitudeshouldnotsupportanunrealisticgrowththatisdetrimentaltoboththeenvironmentandthesociety.Itisimportantthatwedonoturgecustomerstoover-consumeandthatwedonotachievecompetitiveadvantagesbyunfairconduct.MycolleaguesandIstrivetouseaslittlepaperaspossible.Wetransmitmaterialselectronicallywheneverpossible,andaspartofateambuild-ingexercise,wecleanedupahikepathatTihanybycollectingthetrashfromitsenvironment.

– How do you contribute to sustainable development when you are not at work?–Irecentlymovedintoanewapartment,whereIstrovetohaveenergy-efficientlightbulbsinstalled,Igotalightfixturethatrunsonasolarpanelfortheterrace,andIcollectwasteselectively.Ialsorecentlyboughtabike,soIhavealreadymadethefirststeptowardsdecreasingmypollutantemission.

Melinda Modok

22 AllemployeesofMagyarTelekomGroupandthoseactingonbehalfofitwereinvitedtothecourse(13028person)



Magyar Telekom Group has put rules in place to govern the following cases of conflict of interest:

1. Restrictiononemploymentbyorworkingforotherlegalentities1.1.Employeesmaynotbeemployedbyorworkfor: a)anyenterprisethatprovidespublictelecommunicationservices, b)anyenterprisethatconductsbusinesswithanyaffiliateofMagyarTelekomGroup, c)anyenterprisethatpursuesanybusinesspursuedbyMagyarTelekomPlc.1.2.EmployeesmaynotenterintoanyadditionalemploymentcontractwithMagyarTelekom

Plc.forthepursuanceofanyotheractivities.1.3.EmployeesmaynotworkforMagyarTelekomPlc.underanyothercontractforthe

pursuanceofataskthatispartoftheindividualemployee’sjob.2. Restrictiononeconomicinterest Employeesmaynotholdeconomicinterestinanyenterprisepursuinganidentical

businesswiththatofMagyarTelekomPlc.3. Restrictiononothertypesofinterest Employeesmaynotparticipateinthepreparation,considerationorperformanceof

anycontract,orconductofanyofothertypesofbusinesstransactionwithexternalpartiesbetweenanyaffiliatesofMagyarTelekomGroupandanenterpriseinwhichtheemployeeinquestionholdsadirectorindirectinterest.

4. Personalconflictofinterest Anemployeemaydirectlyreporttooneofhis/hercloserelativesworkingforthe

companyonlywiththerelevantHRPartnerDirector’sspecificpercaseapproval.5. Conflictofinterestinpositions Themanagermustensurethatnoneofhis/hersubordinateemployeesbethedecision

makerregardingissuesthatbelong,undertheRulesofOrganizationandOperation,totheindividualemployee,whentheissueinquestionimpactsanentityoutsideofMagyarTelekomPlc.(business,foundation,union,association),inwhichtheemployeeholdsanoffice(membershipinboardsofdirectors,supervisoryboards,chairormembershipinboardsoftrusteesetc.).

Atotalof5proceedingswereconductedagainsttheCompanyforas-sumedviolationsofmarketingcommunicationstandardsandrules.Inthreecases,theCompetitionOfficedidnotdetermineanyviolation,andonesuchproceedingisstillunderway.

TheinvestigationbytheCompetitionOfficeconductedin2009regard-ingT-Mobile’s3000free-of-chargeminutescampaignreacheditsendinNovember2009.

TheCompetitionCouncilimposedafineofHUF20milliontobepaidbyMagyarTelekomPlc,astheauthorityfoundtheinformationadvertisedpo-tentiallymisleading.TheCompanypursuesitsinformativeandadvertise-mentactivitiesincompliancewithfairbusinessprinciples,inaccordancewiththeeffectivestatutesandinlinewiththerelevantadvertisementmarketconditions.AstheCompanydidnotagreewiththedecisionoftheOffice,itfiledalawsuitchallengingtheresolution.Theproceedingshavenotreachedanenforceableresult,yet.

RegardingthecampaignsadvertisingtheBackandForthDiscountsattachedtomobileandfixed-linesubscriptions(in2006and2007)launchedin2007,theCompetitionCounciladoptedaresolutioninNovember2009,andthusimposedafineofHUF30milliontobepaidbyMagyarTelekomPlc.AccordingtotheCompetitionCouncil,theinforma-tionprovidedtoconsumerswaspotentiallymisleading.AccordingtoMag-yarTelekom,thecommunicationwasinlinewiththeeffectivestatutes,thus,theCompanyfiledalawsuitchallengingtherelevantresolution.Theproceedingshavenotreachedanenforceableresult,yet.

TheCompetitionOfficelaunchedcompetitionsupervisionproceedingsagainstMagyarTelekomin2008regardinganallegedabuseofeconomicpowerinthecontextoftheT-Homebrandintroduction.Theproceedingswereclosedin2009onthegroundsoflackofviolation,justlikethepro-ceedingslaunchedregardingT-Mobile’sunlimiteddataoptioncampaign.

RegulatoryComplianceIn2009,asbefore,nofineswereimposedupontheCompanypursuanttoviolationofenvironmentprotectionstatutesandpolicies,ornon-compli-ancewithstatutesorotherdecreesaddressingfiduciarydutyandmannerofuseofproductsandservices.

In2009,nocomplaintsaboutdiscriminationwerefiledwiththerelevantauthoritiesagainstMagyarTelekomGroupaffiliates,andnoproceedingsorinvestigationswerelaunchedinthisregard.In2009,4labor-lawlawsuitswerelaunchedagainsttheCompany,andoneofthemwaswonbyMagyarTelekomPlcduringtheyear.Includ-ingtheproceedingsrollingoverfrompreviousyears,5lawsuitsareinprogress.

Forcomparison,in2008,3lawsuitswerelaunchedand8reachedtheirend,includingtheonesrollingoverfrompreviousyears,halfofwhichwerewonbythecompany.

TheNationalCommunicationAuthorityimposedfinesupontheCompanytothetotalamountofHUF146millionin2009.Inadditiontoseveralsmallerfines,theAuthorityimposedafineofHUF100millionrelatedtothepenaltypaymentpracticeappliedbytheCompanyattachedtofix-termcontracts,andHUF30millionrelatedtonon-complianceinthecontextofmobileradiotelephoneindividualsubscribercontracts.TheCompanyhasappealedagainsttherelevantresolutions.Thepro-ceedingshavenotreachedanenforceableend,yet.

In2009,HUF51millionconsumerprotectionfineswereimposeduponMagyarTelekomPlc.Inthecontextofdamagesclaims,HUF84millionwaspaid.Forcompari-son,in2008,thisamountwasHUF102million.

Nofineswereimposedduetoanti-competitiveconductorviolationofanti-trustoranti-monopolystatutesin2009.



Inordertoincreaseprocurementefficiency,incaseofsmall-value,operationsupportprocurements,wecontinuetopreferonlineeShopsestablisheddedicatedtoMagyarTelekom.Thereferences,economicposition,qualityandenvironmentprotec-tioncapabilitiesareassessedinapre-assessmentsystem,whiletheircontractualperformanceisassessedinapost-assessmentsystembytherelevantexperts,onthebasisofwhichtheyarecategorized(A,B,C,D).Thesecategoriesareofmajorimportancewhenselectingsuppliers.TheCompanymostlyprocuresproductsandservicesfromqualified(A,Bcategory)suppliers.InteractivepagesareavailabletosuppliersatthehomepageofthePro-curementDirectorate(https://www.beszerzes.magyartelekom.hu/english/main.vm),wheretheycanregisterandthenaccessdirectlynewsletters,tenderdocumentation,thesupplierqualificationsystem,submitsomeofthestatementsregardingprocurementprocedures(anti-corruptionstatement,CodeofConduct,SocialCharter),andlearnmoreabouttheCompany’sexpectationsinthecontextofoperationsandsocialissues.Inordertopromotemutualimpromvement,registeredsuppliersareinformedmonthlyabouttheirresultsachievedatsupplierassessment.

Theprocurementproceduresthatliaisonwiththesuppliersmostlycom-priseofareconductedbymeansofintegratedITsystems.Theselectionprocessissupportedbyaninternet-basedofferrequestandauctiontool(e-RFX),andordersareplaced/confirmedalsothroughaninternet-basedelectroniccommercesolution(WebEDI),thenumberoftransactionsthroughwhichisincreasingyearbyyear.Inanefforttopreventanydamage,hazardousmaterialspurchasedaretransporteddirectlytotheinternalcustomer,withtheexceptionofstoringaminimaljustifiableinventory,thusminimizingtransportationtime.

MagyarTelekompurchasesmaterials,tangibleassetsandservicesexclu-sivelybymeansofaregulatedprocedure.Astoproducts,thereisablacklistandagreylistofingredients,meaningthatproductsthatcontainanyofthelistedmaterialsarebannedfromprocurement(blacklist),orarenotrecommendedtoprocure(greylist)byMagyarTelekom.

suchothercompanieswhoseeconomic,socialandenvironmentalper-formanceisuptoastandard.Inordertoensurethis,theGroupmanagesitssuppliercontactsfromsustainabilityaspects,too.

MagyarTelekom’sprocurementfocusedvendorrelationsmanagementisperformedbyacentralizedorganizationcertifiedaccordingtotheISO9001:2000standard.Group-levelcoordinationofvendorrelationsisensuredbytheGroupProcurementBoard,partlythroughtheprovisionofcentralizedprocurementservicesandpartlythroughcoordinationofthemembercompanies’functionalorganizations.Thesuppliersareselectedincompliancewiththelaws,inprocurementproceduresthatensurefaircompetition,transparencyandstructuredanddocumentedprocesses.Initscontractsthecompanyseekstodevelopmutuallyadvantageous,value-creatingpartnerrelations.Toensurecost-efficientoperationthecompanyiscontinuouslyrationalizingitsproc-essesandthenumberofvendorswherebyastablegroupofhighqualityvendorsisachieved.

Inordertoimprovetheefficencyoftheprocurementactivity,thefollowinghavebeenidentifiedasgoals:Thenumberofactivesuppliersshouldbestabilizedattheleveloptimalforouroperations.ByexploitingsynergiesofGroup-levelprocurement,thenumberofactivesuppliershassignificantlydecreased,by15%,comparedto2008.

Qualifiedsuppliersshouldbeusedtoahighextent:Currently,97%ofallordersplacedduringtheyeargotoqualifiedsuppliers.Comparedtothevaluesoforders,theratiois95%.

Thenumberofalternative,electronicprocurementsolutions,de-creasingtheordercycletimesandthevolumeofdocuments,shouldincrease.Thevolumeofelectronicprocurementtransactionshascontinuouslyincreasedduringtherecentyears.Currently,itis52%ofallordereditemswithouttheeShops.(In2008,itwas47%).

Furtherelectroniccataloguesmanagedbythesuppliersareincorporatedintoourinternalorderplacementsystem.Ordersthusplacedaretrans-feredtothesuppliertotallyelectronically.

1.3. Political presenceTheMagyarTelekomGroupisinvolvedinshaingpublicpoliticsthroughitsrepresentationorganzations.Thisworksthefollowingway:Undertheeffectiveregulationstherepresentationorganizationsaregiventhepossibilitytocommentthedraftregulations.Theministriessubmittheproposedregulationstotherepresentationorganizationswhichpollthemembercompanies,collecttheiropinionsandrelaythemtothelineministry.SuchcommentingactivitiesarecarriedoutundertheauspicesoftheJointVentureAllianceortheHungarianSocietyofInternationalCorporations.TheMagyarTelekomGroupisinvolvedintheworkoftheenvironmentalgroupoftheHungarianBusinessLeadersForum,andalsoregularlycom-mentsthedraftenvironmentalregulationsandlawamendmentssubmit-tedtoitbytheJointVentureAlliancetheHungarianSocietyofInternation-alCorporations,theAssociationofInformationTechnologyEnterprisesandtheCommunicationCouncilfortheReconciliationofInterests.InHungary,lobbyingactivitiesareregulatedbylaw[ActXLIXof2006andGovernmentDecree176/2006(VIII.14.)onitsimplementation].TheMagyarTelekomGroupregulatescompliancewiththislawinagroupCEOdirective.In2009,thecorporategroupdidnotpursueanyactivitiessubjecttoAct2006/XLIX.Wehavenoknowledgeofanyfinancialsupporttopoliticalparties,politi-ciansoranyrelatedentitiesprovidedbyMagyarTelekomGroupaffiliatesin2009,whichisintotalcompliancewiththedetailedstipulationssetforthbyourCodeofConduct.

1.4. SuppliersDuetoitssize,MagyarTelekomGrouphasasignificantimpactuponotherstakeholdersineconomy,thus,thescopeofitsresponsibilitycannotbelimitedbytheboundariesoftheCompany.Besides,itisalsoimportantfromriskmanagementaspectsthatitestablishesbusinesscontactswith



1.5. Risk managementItisourpolicythatalldisclosuresmadebyustooursecurityholdersandtheinvestmentcommunitybeaccurateandcomplete,andfairlypresentourfinancialconditionandresultsofoperationsinallmaterialrespects.Suchdisclosuresshouldbemadeonatimelybasisasrequiredbyap-plicablelaws,rulesandregulations,includingby-lawsoftheBudapestStockExchangeandrulesadoptedbytheU.S.SecuritiesandExchangeCommission(“SEC”).Toachievetheseobjectives,weformedtheDisclo-sureCommitteeanddevelopedandhavecontinuouslyenhancedourriskmanagementpolicythatisavailable:http://www.telekom.hu/static/sw/download/kockazatkezeles_en.pdf

Suppliers’DolphinAwardIn2008,weestablishedtheDolphinAward,whichisanawarddedicatedtoCommitted,Sustainable,InnovativeGeneration(http://www.telekom.hu/society_and_environment/events/Dolphin_Award).BygrantingtheDolphinAward,MagyarTelekomwouldliketopromotetheideaofasustainablefutureandrecognizeeffeortsmadetowardsthispurpose.Winnersoftheawardareselectedbyaboardoftrustees,consistingofexperts,fromsupplierssubmittingprojectsinthecontextofsustainability.ThesecondawardceremonytookpaceonJune22,2009intheframe-workoftheSustainabilityRoundtable.

Winners of Dolphin Award in different categories

Category Winner

Equalopportunities,antidiscrimination ProactiveManagementConsultingKft.

Implementedinnovationpromotingsustainability EricssonHungary

Investmentanddevelopmentpromotingclimateprotection GenexEnterpriseandInvestmentZrt.

SpecialAward(implementedinnovationpromot-ingsustainability) CiscoHungaryKft.

Withtheaimtoestablishasustainablesupplierchain,MagyarTelekomstartedtoassessitstop40suppliersbytheself-assessmentquestionnaireelaboratedbyGeSI(Globale-SustainabilityInitiative),whichincludesquestionsaddressing,inadditiontoenvironmentprotection,humanrights,healthyandsafeworkplaceandbusinessethics.Sofar,33suppli-ershavebeenassessed.Inaddition,asofDecember2009,everysuppliermustreadandaccepttheGroup’sSocialCharter,whichsetsforththeminimalsocialstandardsofemploymentandjob-relations.TheCompanyalsostartedtorenewitssupplierqualificationsystemfromsustainabilityaspects.In2010,thesustainabilityimprovementofMagyarTelekom’ssupplierchainshallcontinue.ForMagyarTelekom,anti-corruptionandethicalconductareimportantconcepts,therefore,itexpectsitssupplierstosignuptoitsanti-corruptiondeclaration,aswellasitsCodeofConduct,andcomplywiththerequire-mentssetforththerein,whichisalsostipulatedbytheircontracts.Thus,theaspectsofbothsupplierandcustomerqualificationsincludeethicalconductandhumanrights.MagyarTelekomconsidersitaprioritytomakepaymentstoitspartnersinaccordancewiththedeadlinessetforthintherescpectiveagreements,contracts.

Value ratio of products and services procured from local* suppliers by Magyar Telekom Group member companies with significant procurement value.Group members** 2008 2009

MagyarTelekomPlc. 78% 74%

KFKI 50.9%

IQSYS 93.5%

Pro-M 67.2%

MakedonskiTelekom 69%

T-MobileMacedonia 56%

CrnogorskiTelekom 48%

*Suppliersseatedinthegivencountry.**MembersofMagyarTelekomGroupwithsignificantprocurementvalue.

http://www.telekom.hu/static/sw/download/kockazatkezeles_en.pdf

http://www.telekom.hu/static/sw/download/kockazatkezeles_en.pdf

http://www.telekom.hu/society_and_environment/events/Dolphin_Award

http://www.telekom.hu/society_and_environment/events/Dolphin_Award



2.Customer Relations2.1. Managing customer complaints 282.2. Informing our customers 292.3. Customer satisfaction 292.4. Marketing communication 31

Customer Relations

2.1 Managing customer complaintsAsinthepreviousyears,in2009,CustomerServiceofMagyarTelekomPlc.putspecialemphasisonthestructuredcollectionandmanagementofcustomers’suggestions,commentsandcomplaints,incompliancewiththeeffectivestatutes.

Inthespiritofcooperationbetweenareas,notonlydidmorereconcilia-tionandjointthinkingtakeplaceregardingtheintroductionofnewprod-uctsandservices,butcustomercommentsmadeaboutservicesalreadyintroducedwereregularlyfedbacktotheproductowners,withtheaimtotriggerremedialactionsthateliminatethecausesofthecomplaints,decreasethenumberoffaults,thusimprovingcustomersatisfaction.

TheincreaseincustomerdemandforthenewT-Homebrandintroducedintheautumnof2008,impactedthenumberofcustomercomplaintsandtheirmanagementin2009,too.Themodifiedproductstructureandtherelatednewschemeofdiscounts,aswellasthelaunchofSAT-TV,whichhadnotbeenpartoftheserviceportfoliobefore,triggeredsignificantinterestonbehalfoftheexistingandnewcustomers.Thenumberofourcustomercontactpoints,i.e.callcentersandshops,drasticallyincreased,andresponsetocustomers’inquiriesandquickfulfillmentofordersplacedwereoftenproblematic.Thecrisisalsohadanincreasingeffectonnumbersofcustomercomplaintsandinquiries.


Inharmonywithourexpandingproductportfolio,wehavetransformed,reformedthetechnicalfaultreportprocess:wehaveestablishedataskforcewhichisabletoprovidecomprehensivetechnicalsolutionproposalsregardinganyproducts,i.e.TV,internetandtelephone,inadistanceconsultationformat.

Inordertoimproveourcustomers’satisfaction,wehaveputgreaterem-phasisonexpandingthescopeofservicesavailableinaself-serviceman-ner,thusenablingcustomersnottopotentiallyhavetowaitfortepehoneoperators.Inthisspirit,weintroducedthee-mailautomationapplication,asatemporarypilot,asaresultofwhich,customerscansimplyandquicklygettotheinformationsoughtfor,throughtheT-Homewebsite“inquiries”menuitem,listedamongtheFrequentlyAskedQuestions.

Ourinternalpoliciesanddataprovisionmethodswereupdatedaccordingtotheauthorities’expectationsin2009,too.

Complaints by different services

Service Number of complaints received / quality com-plaints per 1000 subscriber in 2007

Number of complaints received / quality com-plaints per 1000 subscriber in 2008

Number of complaints received / quality complaints per 1000 subscriber in 2009

Mobileservices 18.8/4 8.29/ 2.61 8.30/ 1.3

Fixed-linetelephony 5.01/0,05 5.15/0.03 201.4/ 193.3

Fixed-lineinternet 184.41/6.72 50.35/11.78 280.1/ 248

Remark:thebluefiguresarecalculatedinaccordancewithGovernmentDecree229/2008,whilethepreviousonesarecalculatedinaccordancewithGovernmentDecree345/2004.Thatac-countsforthesignificantchangeincaseoffixed-lineservices.

Inadditiontothedatarepresentedinthechart,incaseoffixed-linetelephony,thenumberoffeecomplaintsper1000subscriberswas1.5,andnumberofcomplaintsabouthandlingcustomers’affairswas3.7in2009.Incaseoffixed-lineinternet,thenumberoffeecomplaintsper1000subscriberswas1.2,andthenumberofcomplaintsabouthandlingcustomers’affairswas17.3in2009.

Inordertodecreasethenumberofcomplaints,wecontinuouslyreviewourprocessesandstrivetosimplifytherelevantprocedures.

Inadditiontothedirectfeedbackreceivedfromcustomers,specialemphasisisputonindirectindications,receivedfromauthorities,con-sumerprotectiongroupsandtheirstaffs.In2009,thementionedexternalsourceshavemadeseveralsuggestions,inadditontomonitoringourstatutorycompliance,toimprovecustomerservice,e.g.developingtheT-HomeandT-Mobilehomepages,andimprovingthecommunicationmaterialsandtheGeneralContractualConditions.Thefeasibilityofthesugesstionsreceivedwerealwaysaddressedbytherelevantareas(Marketing,Legal,ProcessRegulation),andthenecessarystepsweretaken.

Customer Relations

Customer Relations


andcanalsobeusedasabasisforfurtheranalysesbymeansofwhichwecanlearnasmuchabouttheexpectationsofourcustomersaspossibleandadjustourservicesaccordingly.

Customersatisfactionismeasuredbyanexternal,independentresearchfirm.Thecompilationofthequestionnaires,theresearchitself,theadjust-mentandprocessingofthedatabase,thepreparationofanalyses,studiesandpresentationsaboutthefindings,aswellastheirinterpretationaretheresponsibilityoftheresearchfirmincooperationwiththeMarketResearchDepartment.Thesurveyisconductedbyelicitinganswersviatelephone,intheformofstandardinterviews,encompassingsamplesofthejustifiablesize,compo-sitionandweights.Thecontentofthesurveysubstantiallyremainthesamefromyeartoyear,toensurecomparabilityofdata,butacertaindegreeofadjustmentisrequiredtimetotime,duetothechangingexpectationsoftheCompany(Group),aswellasthechangesoftheproductstructureandthemarket.Theselectionofthetargetgroup,aswellasthecoordinationandadministration(definitionofthegoals,selectionoftheresearchfirm,contracting,certificationofperformance)ofthesurveyaredonebytheMarketResearchDepartment.

theMyT-Mobileonlineself-servicepageaccessibleviathehttp://www.t-mobile.hu/englishwebsite,aswellas

theSMSself-servicecenter,incaseofcertainservices.

Inadditiontotheabove,thebrochuresandinformationleafletsavailableattheT-PontandT-Partnershopsorelectronicallydeliveredperrequestalsosupportcustomersinmakingtheirchoice.

TheT-Homeconsumercallcenterisavailable24hoursadaybydialing1412.Thiscustomerservicechannelisresponsibleforhelpingcustomersusingfixedlinetelephones,internetortelevisionservicestounderstandtheparametersoftheseservices,providinginformationastotherelevanttariffsandconditions.

Therearedifferentrangesofinformationavailableregardingdifferentproductsandservices,detailsofwhichcanbefoundinthetermsandconditions:http://www.telekom.hu/szolgaltatasok/aszf

2.3. Customer satisfactionTheCompanyconductsmeasurementsonaquarterlybasisaimedatmeasuringtheCompany’sperformanceperceivedbythecustomersalongcompositeindicatorsincorporatingsatisfactionlevelandothercompo-nents.Thus,oneofthefactorsmeasuredissatisfactionlevel.Inaddition,severalsatisfactionsurveysmightbeconductedperyeartargetedatcertainspecificareas.

Incourseoftheregularsatisfactionsurveys,thesatisfactionoftheCom-pany’scustomerswiththeCompanyandthesatisfactionofcompetitors’customerswiththeirrespectiveserviceprovidersaremeasuredalike,bro-kendowntoconsumerandbusinesscustomersegments.Thefindingsofthesurveysserveasfeedbackfromourcustomers,whichisanimportantindicatorofcorporateperformanceinthedifferentcustomersegments,

2.2. Informing our customersTherangeofMagyarTelekomGroup’stariffpackagesexpandedin2009,too,while,inordertoensuretransparency,wealsosimplifiedtheportfoliotosomeextent.TheGroupstrovetosimplifyitspropositionsasmuchaspossibleandtomakethemavailabletothewidestpossiblescopeofcustomers.YoucanreadmoreabouttheservicesandtariffpackagesofMagyarTelekomPlc’sBusinessUnitsatthewebsitesbelow:http://www.t-home.hu/englishhttp://www.t-systems.hu/start_pagehttp://www.t-mobile.hu/english/all_plans

Informationabouttheservicesofourmajorsubsidiariesisaccessibleatthewebsitesbelow:Dataplex:http://english.dataplex.hu/engine.aspx?page=Dataplex_szolgaltatas

EPT:http://www.ept.hu/pages/index.jsp?lang=enKFKI:http://www.kfkizrt.hu/portfolioIQSYShttp://www.iqsys.hu/web/guest/iqsysPro-M:http://english.pro-m.hu/engine.aspx?page=servicesorigo:http://www.corp.origo.hu/portfolio.htmlKitchenBudapest:http://www.kitchenbudapest.hu/en/productsM-Factory:http://www.mfactory.hu/index_hun.htmlMakedonskiTelekom:http://www.telekom.mk/en/?z=222T-MobileMacedonia:http://www.t-mobile.com.mk/public/?id=E7B20094336D4F37B719741ADEC78015

CrnogorskiTelekom:http://www.t-com.me/Naslovna.aspx?jezik=2,http://www.t-mobile.me/eng/postpaid.aspx

CustomerscanaddressenquiriesregardingT-Mobiletariffpackagesandservicesorevenrequestmodificationsanytimeofthedaythroughtheconsumercustomerservicecallcenter,whichcanbecalledfree-of-chargebydialing1430fromT-Mobile’sHungariannetwork,

the1777(Dominocenter)number,incasetheyholdtop-upcards,theWAPself-servicecenteraccessibleviathet-zonesportal,

0

20

40

60

80

100

* Data are applied to fix line telephone and internet.

2006 2007 2008 2009

79 79 82 82

Satisfaction with fix line services*Residential customers (average on a 0–100 scale)

http://www.t-mobile.hu/english

http://www.telekom.hu/szolgaltatasok/aszf

http://www.t-home.hu/english

http://www.t-systems.hu/start_page

http://www.t-mobile.hu/english/all_plans

http://english.dataplex.hu/engine.aspx?page=Dataplex_szolgaltatas

http://english.dataplex.hu/engine.aspx?page=Dataplex_szolgaltatas

http://www.ept.hu/pages/index.jsp?lang=en

http://www.kfkizrt.hu/portfolio

http://www.iqsys.hu/web/guest/iqsys

http://english.pro-m.hu/engine.aspx?page=services

http://www.corp.origo.hu/portfolio.html

http://www.kitchenbudapest.hu/en/products

http://www.mfactory.hu/index_hun.html

http://www.telekom.mk/en/?z=222

http://www.t-mobile.com.mk/public/?id=E7B20094336D4F37B719741ADEC78015

http://www.t-mobile.com.mk/public/?id=E7B20094336D4F37B719741ADEC78015

http://www.t-com.me/Naslovna.aspx?jezik=2

http://www.t-mobile.me/eng/postpaid.aspx

Customer Relations


In2009,accordingtobusinesscustomers’opiniononmobileservices,T-MobileHungaryisstillaboveaverage(69)andisamongthebestinEurope.

Businesscustomers’satisfactionwithfixed-lineservicesisinlinewithinternationaltrendsin2009,too.ThecustomersatisfactionindexisabovetheEuropeanaverage(51)andisslightlybetterthantheaverageofcompetitorsinHungary(55).Comparedtothesurveyof2008,thepoolofcustomerstargetedchanged:thefindingsin2009reflectedtheresponseofeverybusinesscustomer,notonlytheoneswithmorethan250employees.

Wemeasurebusinesscustomersatisfactionbyquantitativeresearch,whichisinlinewithDeutscheTelekom’sinternalstandardsandbasedoninternationalmethodology,annually.Theresearchinvolvestelephoneinquiryaddressedtoarepresentativesampleofourcustomerpool.Duetothedifferentserviceenvironmentandtheservicesprovided,fixed-line(internet,voice)andmobilebusinesscustomersaresurveyedseparately.Afterprocessingandinterpretingthefindings,weprepareactionplans,ifneeded,toimprovesatisfactionandloyaltyofourcustomersinproblem-aticsegments.

Inordertogainmorein-depthunderstandingofthefindingsof2009,wefounditnecessarytoorganizeadditionalreserach.Thus,inthefirstquarterof2010,westrivetoexplorethebackgroundofproblematicareasidentifiedbybusinesscustomersbyqualitative(interviewandfocusgroup)methods.

Inadditiontoclassicsatisfactionsurveys,customers’satisfactionwiththespecificcustomerrelationschannels,i.e.callcenter,shopsandexchangeofinformationinwritingarecontinuouslymeasured.

Onthebasisoftheanalyses,topmanagementdefinesactionplans.Theanalysesareprocessedfocusingoncustomergroupsmanagedbyspecificorganizationalunits,aswellasonGrouplevel.Implementationismonitoredbytopmanagementandthedirectorsintheframeworkofmanagementmeetings.Deficiencies,deviationsidentifiedthroughtheanalysesareaddressedbytheheadoftheunitconcerned.

In2006-2009,thelevelofresidentialconsumers’satisfactionwithbothfixedline(telephone,internet)andmobileserviceswasconstantlyhigh,theslightchangesofthedataarenotsignificant,thusdonotrepresentrealdeviations.

Thoughwecannotseeanysignificantchangesinthedata,certaindevia-tionscanbedetectedwhenexploringthedetailedanalyses,addressingsmallertargetgroups,whichareusefulforourfurtherworkaimedatprovidingsuperiorqualitytothecustomers.

0

20

40

60

80

100

* Research methodology has changed since previous years; data are presented in a comparable way.

2006 2007 2008 2009

83 81 81 82*

Satisfaction with mobile servicesResidential customers (average 0–100 scale)

0

20

40

60

80

100

Bottom10%

Top33%

MeanBottom33%

Top10%

T-Mobile

6964

50

778784

Satisfaction with mobile services – 2009(European benchmark data) Business customers (satisfaction index)

0

20

40

60

80

100

Bottom10%

CompetitorsTotal

T-SystemsTotal

Top33%

MeanBottom33%

Top10%

3546

555851

6655

Satisfaction with fixed-line services – 2009 (European benchmark data) Business customers (satisfaction index)

Customer Relations


2.4. Marketing communicationMagyarTelekommakessignificanteffortstocommunicateitsadvertise-mentstotheconsumerswithoutbeingdeceptive.Inviewoftheexperienc-esofearlieradvertisementsandtakingintoconsiderationtheguidelinesofGVH(theCompetitionOffice)thecontentsofadvertisementsundergopreliminary(internal)legalcontrolbeforetheyarecommunicatedtothecustomers,accordingly,theadsaredevelopedbytheCommunicationsareaalwaysbyassessingbothbusinessandthelegalaspects.Custom-ersareprovidedinformationviaanumberofdifferentcommunicationschannelsabouttheproductsandservicestobeadvertisedtoensurehighaccuracyinformationtoawidecircleofcustomers.

AttheMacedonianandMontenegrinsubsidiariesoftheGroup,thetrendsareclearlyimprovingineveryserviceareaandcustomersegment.

Customer Satisfaction Index, T-Home Macedonia

2007 2008 2009

THomeMacedoniaCustomerSatisfactionIndex(TRI*MIndex)ResidentialCustomers 48 54 62

THomeMacedoniaCustomerSatisfactionIndex(TRI*MIndex)Business(CME/SOHO)Customers 52 55 61

Customer Satisfaction Index, T-Mobile Macedonia

2007 2008 2009

T-MobileMacedoniaCustomerSatisfactionIndexRC(TRI*MIndex) 72 89 88

Customer Satisfaction Index, T-Mobile Montenegro

2007 2008 2009

T-MobileMacedoniaCustomerSatisfactionIndexRC(TRI*MIndex) 71 78 75

Customer Satisfaction Index, T-Com Montenegro

2007 2008 2009

T-ComMontenegroCustomerSatisfactionIndex(TRI*MIndex)ResidentialCustomers 48 78 81

T-ComMontenegroCustomerSatisfactionIndex(TRI*MIndex)Business(CME/SOHO)Customers 57 73 91



3. Communication without boundaries

3.1. ICT products for sustainability 333.2. Eliminating the digital divide 333.3. Service availability 353.4. T-City, the city of the future 36

Communication without boundaries

3.1. ICT products for sustainabilityMagyarTelekomassessesitsproductsandservicesfromsustainabilityaspects,too.Theassessmentrevealswhethertheproductorserviceinquestionhasanyfavorableenvironmentalorsocialimpact,whetheritcontributestolong-termeconomicdevelopmentandifitisbenefitialforthecustomer.Thesustainabilityimpactofproducts/servicesismeasuredin3dimen-sions,in15topicsandthrough42questions.Accordingtorelatedregulationsustainabilityassessmentcoversallprod-uctsandservicesofthecompany.

Dimensions and main fields of sustainability analyses of services

Dimension Topic

Socialdimension

Protectionandpromotionofhumanhealth

Accesstoinformationandeducation

Pursuingfreedom,happinessanddevelopment

Creationandprotectionofhighqualityjobsandincome

Equalopportunities

Economicdimension

Protectionoflongtermbusinessinterest,reductionofbusinessrisk

Sustainableexamplesofconsumption

Realcosts,fairprices

Orientationoncurrentneedsandbenefits

Regional/globalresponsibility

Competitiveness

Environmentaldimension

Savingresourcesinput

Environmentalpollutionresultingfromoutputs

Contributiontoclimateprotection

Environmentallycompatibleproductsandprocesses


TheCompanyinformsitscustomersaboutitsmostimportantsustainableproductsandtheirsustainabilitybenefits,inorderforthemtobeabletomaketheirchoiceinaresponsiblemannerYoucanreadmoreabouttheaboveathttp://www.telekom.hu/society_and_environment/ict_for_sus-tainability.

Thesocialandnaturalchallengesofourdayandagehavemadeitnecessarythatemergencyandlawenforcementforcesstandardizeandimprovetheircommunicationworldwide.Inordertosupportthiseffort,MagyarTelekomestablishedaStandardDigitalRadioTelecommunica-tionSystem.Thisclosedradiotelecommunicationsystemofveryhighavailabilityisaimedatprovidingprofessionalcommunicationamongdif-ferentemergencyandlawenforcementagencies,thusenablingquicker,moreefficientandmoresecureresponse.UsersofthesysteminHungaryareasfollows:Police,FireDepartment,DisasterManagement,MinistryforEnvironmentandWaterManagement,CustomsandFinanceGuard,PrisonService,NationalSecurityServices,AmbulanceServiceandtheDefenceForces.Youcanreadmoreabouttheaboveintheyear-2008SustainabilityReport:http://www.telekom.hu/static/sw/download/fenntart_jel_2008_eng.pdf

3.2. Eliminating the digital divideDigitaldivideisthenameusedforthephenomenon,existingintoday’ssociety,ofdifferentgroupsofsocietyhavingdifferentchancestoaccessinformationtechnologies(duetogeographicallocation,socialorotherreasons).Bymeansofitsprogramaimedateliminatingthedigitaldivide,MagyarTelekomstrivestobridgethedivideandtofacilitatethepositiveeffectsofinformationandcommunicationtechnologies.Foreconomicdevelopmentinthisage,itisinevitabletoaccessinforma-tionandcommunicationtechnologies,whilethetransformationofsocial

relationsandcommunicationmakeitimportantforustogetfamiliarwithnewtechnologiesandtheopportunitiesofferedbythem.Thus,bybettercommunicationmeans,weenablecontactstobeestablishedbetweenindividualsinparticularandwithinsocietyingeneral.

MagyarTelekomforthedisabledMagyarTelekomconsidersitimportanttoenablehearingandspeechim-pairedpeopletocommunicatewiththeirenvironmentwithoutlimitations.Forthispurpose,weofferthemaspecialservicecalledJelmondó(Relay).Inordertousetheservice,aspecialkeyboard-equippedtelephonedeviceoramodem-equippedcomputerisneedtobeconnectedtothephoneline.Throughthedevice,youcancontactMagyarTelekom’soperator,whointurncontactsthepersonyouwishtocall.Thentheoperatorreadsoutyourwrittenmessagesfortheindividualontheotherendofthelineandsendsyouwrittenmessageswithhis/heranswer.Toinitiatethecontact,youneedtocallthe80303202toll-freenumber.Ifyouarenothearingorspeechimpaired,butwishtocontactapersonwithsuchdisabilities,youhavetocallthe80300200toll-freenumber.Theserviceisnotavailableforinternationalcalls,andnationwidelocal-feenumbers(0640),toll-free(0680)andextra-charge(0690)numberscan-notbecalledthroughthisservice.

WeofferaspecialdiscounttariffpackagetohearingimpairedcustomerswhoholdidentificationcertifyingtheirdisabilitiesusingwhichtheycansendSMSmessagesatHUF15permessage.Inaddition,therearetwopubliclyunavailablelargeSMSpackagesofferedtothesecustomers(SMS500,SMS1000)atfavorableprices.

Usingourprepaidtariffpackagedesignedfortheblindandvisuallyimpaired,customerscanmakecallsatdiscountminute-basedtariffs.

AnagreementisbeingpreparedwiththeNationalFederationoftheBlindandVisuallyImpaired,includingfurtherdiscountspotentiallyavailableforrelativesofourdisabledcustomers,too.

3.Communication without boundaries

http://www.telekom.hu/society_and_environment/ict_for_sustainability

http://www.telekom.hu/society_and_environment/ict_for_sustainability





ByelaboratingtheGreenZoneTariffPackage,whichisuniqueinHungary,ourpurposewastohelplessdevelopedregionscatchupwiththedevelopmentoftelecommunication.Thetariffpackageoffersspecialminutepricesforcallsinitiatedfromthedesignated“discountzones”,andsinceitsintroductionin2000,GreenZonediscountsareavailableat3000settlements,thuscovering94%ofHungary’sterritory.UsingtheCameleonPackagetogetherwiththeGreenZonetariff,onlyHUF600istobepaidabovethemonthlysubscriptionfeeandcallscanbeinitiatedat50%discountpricesfromthediscountzones.

Large-scale IT development at 70 settlements of Baranya

SpecialT-Homediscountsformorethan90thousandinhabitantsofsmallregions

ThemorethanhalfbillionforintsinvestedintheframeworkoftheNationalDevelopmentPlan’sEconomicCompetitivenessOperativeProgramprovidesbroadbandinternetfor36thousandhouseholdsaroundPécsváradfrom2009.MagyarTelekom,astheoperatorofthenetwork,offers7%discounttonewsubscribersintheregiononthemonthlyfeesofT-HomeDSL,Easy,HappyandMediuminternetpackageswithoneyearloyaltyperiod,whichstartsaftertheexpiryoftheonemonthfree-of-chargetrialperiod.

TheownerofthenetworkandtheentityinchargeoftheinvestmentprojectisthePécsváradMultipurposeSmallSettlementAssociation,whiletheoperatorofthenetwork,intheframeworkofalong-termcontract,isMagyarTelekom,whichisopentoservefurtherretailinternetprovidersthroughthenetwork,subjecttocompliancewiththetenderandtheeffectivelaw.

Withthecompletionoftheinvestmentproject,theinhabitantsofthesettlementinquestionareofferednewopportunitiesandexperiencesbyusingbroadbandinternet,whichisnotonlyentertainingintheirsparetime,butisalsousefulatwork.DuetothedevelopmentimplementedaspartofECOP,morethan90thousandinhabitantsofthesettlementcanaccessmodernbroadbandITandelectroniccommunicationservices.

ceremonytookplaceonDecember07atMagyarTelekom’sHeadquar-terBuilding.Altogether20winnerswereannounced.Winnersofeachcategoryreceivedlaptopswithaccessories,andwinnersofspecialprizesgotgiftpackages.Detailsareavailableatthelinksbelow:http://www.telekom.hu/society_and_environment/society/digital_bridge/egalnethttp://www.egalnet.hu/object.5ED601BC-C574-4C66-9A66-13C4B0A26730.ivy

Supportingisolated,disadvantagedsettlementsandgroupsofsocietyThepurposeofMagyarTelekom’sDigitalBridgeatSmallSettlementsProgramistoincreaseawrenessaboutachievementsofandopportuni-tiesofferedbyinformationandcommunicationtechnologiesinregionswherethedigitaldividemightappear.Theprogramaimstoprovidebettercommunicationmeanstodisadvantagedsettlementsoflessthan3000inhabitants,thussupportinglocalandregionaldevelopment.Inthisframework,MagyarTelekom’svolunteersprovidecustomized,efficientITtrainingtothoselivingatthesmallsettlements.127eventsofthiskindhadbeenheldbytheendof2009.588partici-pantstookpartin2009,and268MagyarTelekomvolunteershelpedthemtogetfamiliarwiththeinternet.

In2009,theDigitalBridgeatSmallSetlementsProgramwassupplement-edbyanewelement.VolunteersofMagyarTelekomcontinuetoeducatetheinhabitantstousetheinternetaspartoftheprogramcalledDigitalBridgeFest,inadditiontowhichatalentcontestisheldbyPéterNovákandKultúrpart,wherethewinnersareofferedtheopportuinitytoperformforaliveaudienceandthroughtheinternet.In2009,6settlementsofBaranyaand4ofNyírséghostedDigitalBridgeFestevents.Videos,pho-tosandfurtherinformationareavailableatthelinkbelow:http://www.telekom.hu/society_and_environment/society/digital_bridge/digital_bridge_at_small_settlements

Mobile phone for the silver generation

OnDecember04,2009,T-Mobilestartedselling,beingthefirsttodosoamongmobilepro-vidersinHungary,themobilesetcalled“emporiaTALKpremium”,whichisdesignedtofullycomplywiththeexpectationsandlifestyleoftheelderly.Itsmostimportantfeatureisthatitisextremelysimpletouse.Ithasalarge,high-contrastdisplaywitheasy-to-readcharacters,anditskeyboardconsistsofeasy-to-use,largebuttons.Controlbuttonsarealsolargeandemitdifferentcolorsoflight.Youcansetaveryloudringingtoneandyouarealertedtoincomingcallsbystrongflashinglightsonallsidesofthephone.Itdoesnothaveamenu.Differentfunctionsareaccessedbypushingdedicatedbuttons.ForexampleifyouwishtowriteanSMS,youjustpushtheappropriatebutton.Thedevicemakesitmucheasierfortheelderlytocommunicate,thusretaintheirrolesinsocietyevenaftertheiractiveworkingyears.

InternetforEqualOpportunities(Egálnet)ProgramAttheendof2006,acommunityportalwasestaiblishedwiththepurposeofsupportingtheefficientoperationoforganizationshelpingdisadvantagedgroupsbymeansofexploitingtheopportunitiesofferedbytheinternet.171organizationsjoined(registeredtoparticipatein)theprogrambytheendof2009,outofwhich114launchedtheirwebsites.Egálnetisacommunitysitethatenablesregisteredorganizationstouseasimpleprogramtocreatetheirownwebsites,aswellastokeepintouchwitheachother.ThetargetgroupoftheprogramincludesNGOsrepre-sentingsociallydisadvantagedordisabledpeople,groupssupportingyoungunemployedindividualsoronesjuststartingtheircareers,schools,minorities,aswellasfoundations,associationsaddressingothersocialproblems.Theprojectprovidesmeanstothetargetgroup,thusenablingthemtodeveloptheircapabilitiesandcommunication,whichtranslatesintoanimprovementoftheirprofessionalachievements.Communities,NGOscanadvertisethemselves,exchangeinformstionwithsimilarorganizationsandevencollectmoredonations.In2009,Egálnetwebsitescompetedwitheachotherforthesecondtime.Thewebsiteswereassessesalongcontentandformatcriteria.Theaward

TelekomDigitális Híd

http://www.telekom.hu/society_and_environment/society/digital_bridge/egalnet

http://www.telekom.hu/society_and_environment/society/digital_bridge/egalnet

http://www.egalnet.hu/object.5ED601BC-C574-4C66-9A66-13C4B0A26730.ivy

http://www.egalnet.hu/object.5ED601BC-C574-4C66-9A66-13C4B0A26730.ivy

http://www.telekom.hu/society_and_environment/society/digital_bridge/digital_bridge_at_small_settlements

http://www.telekom.hu/society_and_environment/society/digital_bridge/digital_bridge_at_small_settlements



3.3. Service availabilityMagyarTelekomgrantssubscribers’rightsconnectedwithserviceavail-abilityandfaultrepaironthebasisofitsGeneralContractConditionsavailableontheInternetandinthecustomerservicepoints.Inthesethecompanyguaranteescompliancewiththepublishedqualitytargetsintheserviceprovisionprocessinitsentireservicearea,whichcomplianceiscontrolledwithtestsandthemethodsofmeasuringaremadepublic.

Thecompanyalsospecifiesherethequalitytargetfiguresofservicesprovided,andcontinuouslymeasurestheirfulfillmentandmakespubliclyavailablethereadings.Faultsintheservicedetectedbythesubscribersinthecourseofusingtheservicearemanaged,amongothers,inlinewiththeirrightslaiddownintheGeneralContractConditions,accordingtotheproceduredeterminedfortheperiodafterthedetectionandregistrationbythecompanyofthefault.TheGeneralContractConditionsareavailableonthefollowingwebsite:http://www.telekom.hu/szolgaltatasok/aszf

Inordertoavoidextraordinaryserviceoutages,theGroupequippedalltechnologicalfacilitiesandexchangeswithbackuppowerunits.MagyarTelekomstrivestoensureservicecontinuancebymeansofcontinuouslydevelopedtechnologicalsolutions,securitysystemsandbackupequip-ment.

Asof2009,thecompanystartedalarge-scalefiberroll-out,inaccordancewithitslong-termstrategy.Thesefibernetworksprovidehigheravailabil-ity,duetothelackofactive(energyconsuming)elements,comparedtotheexistingnetworks.

PC-s for NGOsEveryyear,MakedonskiTelekomdonatesPC-stomanycivil-societyorganizations,supportingtheactivitiesofmarginalizedgroups,womenandthosewithlittleornoaccesstotechnology.In2009,computersweredonatedtotheAssociationofPeoplewithLabourDisabilitiesoftheRepublicofMacedonia,theInformationTechnologiesDevelopmentFoun-dation–InformationCentreKrivaPalanka,YouthAssociation–Krusevo,RomaniTopaanaandothers.

Development of information society in Montenegro

Beingtheleadingbroadbandproviderinthecountry,CrnogorskiTelekomisresponsibletobethefirstnationalpartnerindevelopinganinformationsociety.InordertoenableinternettobecomeapartofeverydaylivesofthemajorityofMontenegrincitizens,togetherwiththeGovernmentofMontenegro,theCompanyinitiatedaprojectaimingtoincreasethelevelofdigitalliteracyandinternetpenetrationinMontenegro.Thegoaloftheproject,whichstartedin2008andisplannedtolastuntil2012,isincreasingthedigitalliteracy,increasingthelevelofknowledgeandusingtheinternet,raisingthegenerallevelofawarenessontheimportanceoftheInternetandpromotinginformationcultureinMontenegro.Also,oneoftheobjectivesisinvolvementofthemarginalizedgroupsintotheinformationsociety.Inthefirstphaseoftheproject,forprimaryandsecondaryschoolpupils41workshopswereorganizedin21Montenegrinmunicipalities.About15000pupilswereintroducedtotheadvantagesofusingtheinternetandtotheconceptofschoolwebsites.AllprimaryandsecondaryschoolsinMontenegro(162primaryand46secondaryschools)gottheirownwebsiteswhosecontentwasfurtherdevelopedbypupilsandtheirteachers(www.mojaskola.me).BestwebteamswereawardedwithatraveltoParis.Inthesecondphaseoftheproject,thefocuswasonincreasingthecomputerliteracyandinternetusageamongseniorcitizens.Besides,theaimwastoeliminatefearofusingnewtechnologies,prejudicesandobstaclesinusingPCsandinternetamongthispopulationgroup.TheCompany’scontributiontodevelopmentofinformationsocietywillremaininourstrategicfocusforyearstocome,andthecompanyallocatedEURO1millionforthisfour-yearproject.Forthethirdyearinarow,CrnogorskiTelekomenablesfreeinternetaccessviaADSLtoallelementaryandhighschoolsinthecountry.TheprojectwasimplementedtogetherwithMinistryofEducationandScience,anditstartedin2006.Inordertofurtherincreaseawarenessabouttheimportanceofinformationtechnologiesamongtheyoungpopulation,andawardextraordinarytalentandknowledge,in2009CrnogorskiTelekomawarded62elementaryandhighschoolpupilswithfreebroadbandinternet.TheprojectwasimplementedincooperationwiththeExamcentreofMontenegro.

IntheagreementconcludedbetweenMagyarTelekomandtheMinistryforprolongingtheGSM900MHzfrequencylicenceby15years,theCompanyundertooktocarryoutcertaindevelopmentsbetweenJanuary1st2008andDecember31st2009:Insteadofthecommitted1005000,1627677citizenswereprovidedwithmobileaccessinlow-coverageregions.

Ina2kmradiusareaoftheLakeBalaton,insteadofthecommitted75%,82.59%ofmobilebroadbandterritorialcoveragewasachieved.

Insteadofthecommitted88%,94.19%ofpopulationcoveragewasachievedatBalaton.

Insteadofthe400,401newbasestationswerebuiltandinsteadofthecomitted300,507basestationswereupgraded.

Intotal,insteadofHUF20billion,HUF22.762billionwasspentbyDecember31,2009ondevelopingmobilebroadbandinfrastructure.

Atthesametime,furthersmall-regiondevelopmentprojectsareunderwayaspartofECOP.Youcanreadmoreaboutthematthefollowinglink:http://www.telekom.hu/rolunk/halozatfejlesztes_palyazat

Buildingadigitalsocietyabroad“PC for every student” in MacedoniaMakedonskiTelekom’ssupporttothegovernmentproject“PCforeverystudent”promoteseffectiveuseoftechnologyinclassroomsaccrossthecountry.ThedonationconsistedofinstallingnetworksforconnectingallPCsinonecommunicationnetwork,providingincreasedqualityoftheeducationprocess.Untilnow,1951classroomswereconnectedin93schools,andinstallationofactiveequipmentinthedormitoriesisplannedfor2010.Inaddition,inordertoprovidethestudentswithapossibilitytousetheadvantagesoftheinternetatthespeedoflight,the2010planforextendingtheopticnetworkalsoencompassesthedormitorieswhichad-ditionallysupportsouraimforextensionoftheaccesstotechnology.

http://www.telekom.hu/szolgaltatasok/aszf

http://www.telekom.hu/rolunk/halozatfejlesztes_palyazat



Inaninitialstage,MobileParkingwasintroducedthroughouttheCityandT-Mobilecreatedmobilepaymentservicesincooperationwithsomelocalpizzeriasandbookshops.(ThebasisisthefastHSDPAmobilenetwork,whichwasalreadyavailablethroughoutSzolnok.)WiththeHomeLabinnovationcenterinSzolnok,MagyarTelekomhascreatedafacilityfortestinganddevelopinginnovativeproductsandservicesenroutetomarketmaturity.AtHomeLab,residentsandlocalcompaniesareinvitedtoincorporatetheirownideas,experiencesandrequestsintothedesignofnewtechnologies.

Fall2009sawthelaunchofstagethree,withinitialprojectsintheareasofhealth,education,tourismandculture:–SinceSeptember2009,MagyarTelekomhasbeentestinganemer-gencycallsystemforelderlypeoplelivingaloneasoneofitshealthprojects.Incaseofanemergencysituation,acentral24-hourclinicwillbealerted,andwillnotifyrelativesand,ifnecessary,callaparamedic.

–Thefirstculturalprojectwaslaunchedinthetown’ssportshall,wherefourIPcamerasareusedtorelayculturalandsportingeventsliveviatheInternet.Therecordingsarealsoarchived–aservicethatisprovingparticularlyusefulforsportsmensportswomenandtheirtrainers.

–Sincethestartofthe2009academicyear,oneelementaryschoolinSzolnokhasbeenequippedwithanentryguidingRadioFrequencyIdentification(RFID)technologybasedsystem:thestudentswearspecialtagswhichregistertheirarrivalat/leavingfromschool.ParentscanopttoreceiveanautomatedSMSmessage,ortracktheirchildren’sentry/exittimesviatheInternet.

–In2009,over100peopleinSzolnoktrialedanewsecuritysystemfortheirhomes.ThepropertiesaremonitoredaroundtheclockbysensorsandIPcameras.Incaseofirregularities,theownersarenotifiedimmediatelyviae-mailorcellphone.TheycanalsoviewimagesofthesituationdirectlyviatheInternetand,wherenecessary,notifytheirneighborsoralertthepolice.Thesystemwillstilloperatereliablyevenintheeventofapowerfailure.ItisduetobelaunchedontheHungarianmarketin2010.

ThecooperationbetweenMagyarTelekomandthecityofSzolnokisalongterminnovationprogramwheretheprojectfocusesareinthefieldofeducation,culture,homesecurity,tourismandhealth.

Atthesametime,uponconsiderationoftheinconveniencecausedtocustomers,MagyarTelekom’smanagementdecidedtooffer10minutesoffree-of-chargevoicecallswithinthenetworktoeverysubscriberandDominocardholder,whichcouldbeusedupbetween0:00amDecem-ber24,2009andmidnightDecember31,2009.The10free-of-chargeminutesofvoicecallswithinthenetworkwereprovidedautomaticallytoeverycustomerandwerecalculatedonthebasisofcustomers’respec-tivetariffpackages.ApressreleasewasissuedaboutthecompensationonDecember07,andcustomerswerecontinuouslyinformedaboutitthroughthecustomerserviceautomatedmessagesandthehomepage.

3.4. T-City, the city of the futureInMay2009SzolnokwasnamedT-City.Thecityishometosome78,000people,whowillbenefitfromnumerousprojectsdesignedtodemonstratethepotentialofstate-of-the-artICTforqualityoflifeandenhancedcom-munityamenitiesinthefuturelabthatisT-City.ThecooperationbetweenMagyarTelekomandSzolnokLocalGovernmentisauniqueprojectinHungarywhichwillcreateimpetusthroughoutthecountry.

SeveralprojectstageswerecompletedinthefuturelabofSzolnokduring2009:

Annual service availability

Annual service availability (%) 2005 2006 2007 2008 2009

CTVanalogue/digital 99.88 99.96 99.98 99.98 99.97/99.95

IPTV 98.74 99.77 99.8

Fixed-lineinternet(ADSL) 99.83 99.82 99.93 99.9

Mobileinternet2G/3G 99.6 99.74 99.5 99.71 99.67/99.5

Telephone/VoIP/VoCaTV 99.97 99.97 99.97 99.96 99.96/99.65/99.97

Mobiletelephone2G/3G 99.95 99.94 99.94 99.94 99.94/99.91

AsoftheearlymorninghoursofDecember04,2009,largenumbersofmobilesubscribersofMagyarTelekomreportedtothecustomerservicecentersthattheyhadproblemsreceivingandinitiatingcalls.Duringthemorning,nationalandlocal,printedandonlinemedia,aswellasradiostationsandtelevisionchannelskeptoninquiringabouttheproblemviafixedlinetelephones,emailsandsometimeseventhroughmobiles.

MagyarTelekomissuedastatementinformingcustomersaboutthecauseoftheserviceoutage(anunexpectedsoftwarefaultthathadhappenedincourseofascheduledworkdoneduringthenight)andaboutthefactthatfaultrepairhadstartedduringthenightandthesystemwasgraduallycomingbacktonormalstatus,atthesametimethankingcustomersfortheirunderstandingandpatience.AccordingtothereportoftheTechnicalDirectorate,thecauseoftheout-agewaseliminatedby3:30pmandonlysporadicoutageswerepossiblebythattime.

Inordertoprovideup-to-dateandcomprehensiveinformationtocustom-ers,MTissuedanotherpressreleasethesamedayaboutthefactthatconsequenttofaultrepair,servicelevelswererestoredby3:30pmevery-whereinthecountryandoutageswereonlypossiblesporadically.Respondingtoquestionsaboutthepotentialityofpenaltypaymentraisedbyalmosteverymedia,MagyarTelekomstatedthatithadrevieweditspotentialliabilitiesarisingfromthenetworkoutageandhaddeterminedthatitwasundernoobligationtopaypenalty.



4. Reducing the environmen-tal footprint

4.1. Climate protection 384.2. Water consumption 454.3. Biodiversity 454.4. Emissions 464.5. Waste 464.6. Environmental objectives and costs 484.7. T-Mobile for the cyclists 49

Reducing the environmental footprint

Duetoitsscopeofactivities,MagyarTelekomGroupisnotoneofthesig-nificantpolluterseitherontheinput(rawmaterials,energyconsumption)ortheoutput(wastematerials,emission)side.Inadditiontodecreasingenergyconsumption,theCompanyreducesitsenvironmentalfootprintontheinputsidebydecreasingthevolumeofpaperusedorbyreplacingitbyrecycledpaper.Ontheoutputside,itwishestoreduceitsenvironmen-talfootprintbya10%CO

2emissiondecrease(by2011)andbyselective

wastecollection.Ontopoftheabove,MagyarTelekomenablesitscus-tomerstoreducetheirenvironmentalfootprintsbyusingtheCompany’sservices,andputsemphasisonincreasingawarenessinthiscontext,too.

4.1. Climate protectionClimatechangeisconsideredasoneofthegreatestenvironmentprotec-tionproblemsofourage.Asaresultofwarming,certainareasbecomesubjecttodesertification,whileothersareflooded,atthesametimeextremeweatherconditionsbecomegloballymorefrequentandmorein-tensive.Meltingofglaciersandthepolaricecapsresultinincreasingsealevels,whichendangersthehabitatofmillions,whilethewatersupplyofbillionsisalsoatstake.Thegrowingnumberofclimaterefugeesalreadyshowstheweightofthisproblem:millionshadtoleavetheirhomesduetodesertification,floodingorgrowingsea-levelsintherecentyears.Climatechangealsocausesanacceleratingpaceintheextinctionofplantandanimalspecies,asmanyofthemcannotadapttotherapidchanges.OneofthestrategicgoalsofMagyarTelekomposingthegreatestchallengesisclimateprotectionandthedecreaseofitsownanditscustomers’CO2

footprint.ThecorporateGroupsetatargetofreducingitsCO

2footprintby

10%by201123.

MagyarTelekomisconcernedintheissueofclimatechangefromseveralaspects.Firstofall,theCompany’soperationsincurdirectandindirectgreenhousegasemissions,despitethefactthattheactivitiespursuedbytheCompanydonotcausemuchpollution.Theseemissionsaremainly


duetoelectricpowerandpaperconsumption,heatingandtravel.Second,theGroupprovidesICT(informationandcommunicationtech-nology)servicesthatcanreplacetravelandmaterialconsumption.Videoandaudioconferencing,TelePresence,whichisamorelife-likewayofvideoconferencing,e-billsandotherelectronicsolutionstoconductone’saffairsareallsuchservices.Third,throughthemorefrequentandmoreintensiveoccurrenceofextremeweatherconditions,climatechangehasanindirecteffectontheGroup,asnetworkelementsareexposedtoweather.Inanefforttomanagetheserisks,MagyarTelekompreparedastudyoftheclimatechangeeffectsandtheirrelevantfinancialimpact,onthebasisofwhichithasstartedtomountweathermonitoringmeasurementequipmentonitstowers.Currently,16stationsareequippedlikethat,andtheinflowingdataarebeingconstantlyassessed.

ClimateprotectioncampaignIn2009,MagyarTelekom’sinternalclimateprotectioncampaign,aimedatincreasingemployees’awarenessaboutandcommitmenttoclimateprotectionandmakethemtakeactionagainsttheclimatechangebyconsciouslychangingtheirworkandlifestyles,wascontinued.

Itwasinthisspiritthatwelaunchedaneffortpromotingeconomicaldriv-ingtechniques,bymeansofwhichyoucannotonlydecreaseemissionlevels,butalsosavetravelcostsandavoidstress.Wealsoincreaseawarenessamongcolleaguesaboutthefactthatbypreferringcost-efficientsolutionsofferedbythecompany,theypromoteclimateprotectiongoals,beyondthepositiveeconomicimpact.Bythis,wewishedtoshedlightonthefactthateconomicandenvironmentprotectiongoalscanbeharmonized.WecontinuedourPCSwitchOffprogram,too,aspartofthesecondphaseofwhichweswitchPCsandlaptopsleftunusedduringthedayintostand-bymodeinordertothusdecreasetheirenergyconsumption.

Welaunchedaseriesofactionsbasedonthebooktitled„100picturesoftheworldworthtoremember”.Thebookisaboutnaturalphenomenathatmightdisappearsoonduetoclimatechange,butitalsooffersmanyuse-fulideasastohowtotakeactionagainsttheclimatechange.Inadditiontopopularizingtheseideas,weasodescribeourgoodpracticesinthiscontext.

Between8:30and9:30pm,onMarch28,2009,aspartoftheglobalEarthHourinitiative,municipalities,companiesandindividualsswitchedofflightstodrawattentiontoclimatechangeandthefactthatallofuscantakeactionagainstit.

MagyarTelekomanditsofferingbrands,T-MobileandT-Home,joinedtheinitiativein2009,astheydidin2008.Duringtheperiodindicated,weswitchedoffouradvertisementlightsandthelightsofT-Shopsandofficebuldings.Inaddition,at18shopsstillopenatthattime,weofferedenergy-efficientlightbulbsinreturnforusedbatteriesandphonesets,aswellasdistributedleafletsonenergysavingsmethodstocustomersshowingupbetweennoonandclosinghour.OrigoandIwiwalsojoinedtheinitiative,andblackedoutthebackgroundoftheirscreensfrom8:30.AnEarthHour2009clubwasalsoestablishedatIwiw.

4.Reducing the environmental footprint

23Baseyear:2007



ElectricpowerconsumptionMagyarTelekomGroup’selectricpowerconsumptionissignificant,asthetechnologiesusedtoprovideourservicesrequirethat.ItisapriorityobjectiveoftheGrouptodecreaseitsconsumptionasfaraspossiblebyapplyingstate-of-the.artequipmentandtechnologies.Consumptionin2009was282GWh,whichisanincreaseof0.4%com-paredtothepreviousyear.TheslightincreaseiscausedbytheGroup’scontinuousdevelopmentandtheexpansionofourserviceportfolio.AstomembersoftheGroup,MagyarTelekomPlc’sconsumtionin-creasedby5.7%,partiallycausedbyT-Kábel’smergerandtheappear-anceofnewacquisitionareas,coupledwiththeeffectofnewwirelessbasestations’addedconsumption.TheconsumptionofMakTelsignifi-cantlyincreased(by10.3%)causedbytheexpansionoftheshopnetworkandthenewlyestablished3Gnetworkbasestations.TCGdecreaseditsconsumptionsignificantly(by19.3%).Thisisprimarilyduetothedecreaseinconsumtionbyofficesduetodownsizing,asaresultofwhichlessbuildingsandair-conditioningequipmentareneeded.

EnergyefficiencyindicatorpresentedonthechartshowsdatatransmittedwithonekWhenergy.Tendencyofcontinousimprovementisdefinite.

0

2

4

6

8

10

12

Gbit/kWh 2005 2006 2007 2008 2009

3.3394.699

7.430

9.834

11.883

Energy efficiency indicator, Magyar Telekom Plc.

Dr. Géza Pál NagySeniorInfrastructureOperationsManagerGroupRealEstateServices

– What do you do for Magyar Telekom to be a sustainable company?–Inthisage,energyissuesposeperhapsthemostimportantsustaina-bilitychallenges.Aspartofmywork,Ifaceissueslikeelectricity,heatingandcoolingenergysavings,aswellasCO

2emissiondecreaseandre-

newableelectricitysupply.I’vebeenworkingonsolutionsinvolvingPEMcellsforclosetosevenyears,atlast,perseveranceandtheestablish-mentofavaluechainleadtosuccess.ThebottomlineisthatthemajorfactorisnotthePEMcellinitself,buttherelatedcoolingventilationisofimportance,too,asthereisnoneedforlargebatteriescontainingleadandsulfuricacid,lessthanhalfasmuchair-conditioningisrequired.EventhoughIholdanengineeringdoctorate,Ihavetocontinuouslylearnandbeabletodoubtmeasurementresults,aswellasevenmyownideas.ThatisthewaytoboilthingsdowntowhattheyreallyareandthatisthemethodologybymeansofwhichIcontributetoachievingthecompany’ssustainabilitytargets.

– How do you contribute to sustainable development when you are not at work?–Thestudyofenergyasasciencefollowsmehome.Imadeaninven-toryofhowmuchelectricity,hotsanitarywaterandheatingenergyisconsumedbyourhouse.Aftersomecalculations,Ihavehadsolarcol-lectorsmountedontheroof,whichdonotonlyfeedthebathtubandthesink,butthewashingmachineandthedishwasher,too.Theyeveninputenergyintothefloorheatingintheautumnandthespring.Ihavegradu-allyreplacedalmostalllightbulbsbyenergy-efficientones,andalsoboughtamoresophisticated,lower-consumptionandquietcomputer.



Distance heatingMagyarTelekomGroupconsumed3.4%moreenergyfordistanceheat-ingthaninthepreviousyear.Thistypeofenergyconsumptionisdifficulttoinfluence,asdistanceheatingismostlyusedinofficebuildingswerent.

DirectlygeneratedenergyforourownuseTheuseofenergygeneratedforthecompany’sownpurposesdidnotchangein2009comparedtowhathadbeendescribedinthesustainabil-ityreportsofthepreviousyears.

Inorderforustobeabletoprovidecontinuoustelecommunicationserv-ices,evenincaseofpoweroutages,wehaveemergencydieselpowergeneratorsinplace.

Wecontinuetouseagasenginetoprovidetheelectricpower,heatingandhotwaterattheKrisztinakrt.headquartersbuilding.TheunusedportionofthegeneratedelectricpowerissoldtotheBudapestElectricWorks.

AlternativeandrenewingenergysourcesMagyarTelekomPlchasheatpumpsinstalledattwositesinBudapestandoneinGyőr.Theequipment,theoperationofwhichisdescribedinlastyear’ssustainabilityreportusestheresidualheatgeneratedintechnologicalroomsforthepurposeofheatingsanitarywater.Theenergyproducedintheformofheatisapproximately4-5timesasmuchastheelectricpowerconsumed.

MagyarTelekomputintotestoperationabasestationrunningonhydro-gen(PEMcells)in2008.Theinstallationof5newsuchbasestationsstartedin2009.Thecoolingofbasestationsbyventillationstartedat950containersta-tionsbetween2006and2009.

FossilfuelconsumptionMagyarTelekomGroupusesfossilfuelstoheatoffices,partofwhichisfromdirectenergysources(naturalgas),therestisindirectenergyprovidedbylong-distanceheating.Heatingoilisusedtoaninsignificantextentandonlybyforeignsubsidiaries.

Gas consumptionAfterlastyear’sincrease,theGroup’sgasconsumptionshowssignificantdecrease(6.7%)causedbymodernizingtheheatingequipmentandthedecreaseofthenumberofbuildingstoheat.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

th m3 2005 2006 2007 2008 2009

8,697

8,175

7,166

8,1797,628

Gas consumption, Magyar Telekom Group

Inadditiontotheabove,solarcollectorsareinplaceatheCompany’sholidayhomeatBalatonkenese,whichprovideshotwaterforsanitaryandheatingpurposes.

MontenegrinTelekomhasrecentlyputintooperationtwobasestationsthatuserenewableenergysources.Thesearestate-of-the.artequipmentthatusethepowerofthesunandwind.Theprojectispartofabroadercompanyinitiativetostopglobalwarmingandprotecttheenvironment.

ThefirstbasestationwithalternativeenergysourcesinstalledintorticollisaboveRisan-at1350mabovesealevel,andtheotherislocatednexttothehighwayPodgorica-KolasinPlatijeinthecanyon.Attheselocations,equipmentwereinstalledthatuseacombinationofsolarpanelsandwindgenerators.



MileageTheGroup’sservicesencompassthetotalterritoriesofHungary,Macedo-niaandMontenegro,thus,itisinevitabletousevehiclesregularly.Noneoftheinstallationworksandonlyasmallportionofmaintenanceandrepairworkscanbehandledbyremotecontrol.

Milageincreasedby16.8%comparedtothepreviousyear’s,whichiscausedbythealreadymentionedincreaseofserviceterritory,especiallythatofCTV.

FuelconsumptionThefleetoftheGroupdecreasedby3.1%comparedtothepreviousyear,however,milageincreasedsignificantly,by16.8%.TheincreaseisduetotheincreasingnumberofSAT-TVandIPTVsubscribersthatresultedinagrowingserviceterritory.Despitetheaforementioned,totalfuelconsump-tionincreasedonly1%comparedtolastyear’ssignificant7.5%increase.TheGroup’sdieselconsumptionwas3383thousandlitersin2009,whichis3.7%morethaninthepreviousyear.Gasolineconsumptiondecreasedby1.5%,whichistobeconsideredasuccessinlightofthepreviousyear’sincreaseof7.3%.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

th liter 2005 2006 2007 2008 2009

3,1612,868

3,0413,263

3,383

Fuel consumption of vehicles (diesel), Magyar Telekom Group

Magyar Telekom Plc.

Emitel

T-Mobile

T-Online

T-Kábel EPT

IQSYS PRO-M

OrigoM Factory TCG

MakTel

Dataplex

BCN

KFKI

Cardnet

0

500

1,000

1,500

2,000

2,500

3,000

3,500

th liter 2005 2006 2007 2008 2009

2,894 2,899 2,9073,100 3,055

Fuel consumption of vehicles (petrol), Magyar Telekom Group

Magyar Telekom Plc.

Emitel

T-Mobile

T-Online

T-Kábel EPT

IQSYS PRO-M

OrigoM Factory TCG

MakTel

Dataplex

BCN

KFKI

Cardnet

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

th km 2005 2006 2007 2008 2009

71,58067,082 66,156 70,022

81,782

Mileage performance of vehicles, Magyar Telekom Group

Magyar Telekom Plc.

Emitel

T-Mobile

T-Online

T-Kábel EPT

IQSYS PRO-M

OrigoM Factory TCG

MakTel

Dataplex

BCN

KFKI

Cardnet



ThefleetoftheGroupdecreaedby3.13%comparedto2008.Breakdowntofueltypes:Thenumberofcarsrunningongasolinedecreasedby1.1%.Thenumberofcarsrunningondieseldecreasedby2.3%.Breakdowntopurpose:Thenumberofservicecarsincreasedby0.3%.Thenumberofbenefitcarsdecreasedby9.2%.

Travel-decreasingsolutionsByaudio-andvideoconferencing,manytripscanbeavoided,whichleadstosignificantdecreaseinemissions.Inaddition,usingtheTelepresenceservice,offeringlife-likevirtualmeetings,colleaguesevenindifferentcountriescansitaroundavirtualtable,thuswithouthavingtomakelongflights.Bysavingtraveltime,thereremainsmoretimetospendwiththefamilies.

Bymeansoftheaboveservices,MagyarTelekomGroupmadealtogether719513kmsoftravelunnecessary,whichis2.5timesmorethanitwasin2008.Breakdowntomeansoftransportation:flights:485728kmcarride:233785kmBreakdowntofueltype:4588litersofdieselfuelwassaved,whichis30%morethanintheprevi-ousyear.3189litersofgasolinewassaved,whichis36%morethanthepreviousyear.

VehiclesMagyarTelekomGroupcontinuouslymodernizesitsfleet.Theaverageconsumptionnormofthevehiclesreplacedin2009was8.7litersper100km,whilethatofthevehiclesthatreplacedthemwas7.2litersper100km.TheaverageCO

2emissionofthevehiclesprocuredin2009is155g/km.

Itistobehighlightedthatin2009,already54hybridvehicleswerepartofthebenefitcarfleet.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

pcs 2005 2006 2007 2008 2009

3,840

2,390

1,450

2,222

1,335

2,481

1,495

2,431

1,593

2,376

1,522

3,557

3,976 4,024 3,898

Number of vehicles, Magyar Telekom Group

Cars running on petrol Diesel cars

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

km 2005 2006 2007 2008 2009

208,650

208,650 156,670 197,874

138,348

147,884

485,728

233,785

156,670197,874

286,232

719,513

Travelling distance replaced by videoconferences, Magyar Telekom Group

Car trips Flights



Theyear-2009calendarandnotebookcollection,similarlytothatofthepreviousyear,ismadeofrecycledpaper.TheGroupalsostrivestopro-curestationeryandbusinessgiftsmadeofenvironment-friendlymaterials.

Thenumberofe-billusersamongMagyarTelekomGroup’scustomersincreasedbycloseto90%comparedtothatofthepreviousyear.MagyarTelekomPlcsendse-billsto60435customers,whileMakTeldoessoto3565customers,insteadofpaper-basedbills.KeycustomersofmobileservicescontinuetobeprovidedwiththeElectronicChargesInformationservice,bymeansofwhichelectronicbillcopiesanddetailedlistsofcallscanbedownloadedthroughtheSelf-serviceCustomerService.

PaperconsumptionPaperisthematerialconsumedbyMagyarTelekomGrouptothegreatestextent.Itismostlyusedforofficepurposes,butbillsanddirectoriesarealsoprintedonpaper.MagyarTelekomGroup’spaperconsumptiondecreasedby56%com-paredtothatof2008.AmongthemembersoftheGroup,the52.13%decreaseachievedbyMagyarTelekomPlc,duetothecontingencymeasures(costreductions)wasthemostsignificant.MagyarTelekomPlc’spaperconsumptioniscloseto90%ofthatofthetotalGroup.Approximately15%ofthepaperconsumedbytheGroup’semployeesisrecycledpaper.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

kg 2005 2006 2007 2008 2009

7,180,132

3,984,7484,310,579 4,225,000

1,826,599

Paper consumption, Magyar Telekom Group

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

kg 2005 2006 2007 2008 2009

249,648

32,108

263,360

52,936

470,776

72,037

393,019

44,098

394,843

58,537

Ratio of recycled paper in office paper, Magyar Telekom Group

Office paper used by employees(printers and photocopiers)

Recycled paper used by the employees

0

2

4

6

8

10

12

14

ton 2005 2006 2007 2008 2009

2.388

2.186

4.185

3.255

5.581

4.341

6.877

5.349

13.056

10.156

Paper replaced and CO2 avoided by using electronic bills

Paper replaced CO2 emission avoided



Intotal,itistobeconsideredasuccessthatdespitethegrowingserviceareaandportfolio,theextentofCO

2emissiondecreased,evenifonly

slightly.

TheCO2emissioncausedbythetotaldirectenergyconsumption

decreasedbymorethan1.5%comparedtothepreviousyear,whiletheemissioncausedbyindirectconsumptionshowsaslight,0.44%increase.Intotal,theCO

2emisioncausedbyenergyconsumptionshowsade-

creaseof0.1%,whichisduetothefactthatthetypesofenergythatmakeuprelativelymostoftheemissionsshownooronlyslightincrease.

CarbondioxideindicatorThecarbondioxidefootprintofdifferentenergytypesarelistedinthetablebelow.Wheconvertingthedata,weappliedCO

2conversionfactorsonthebasis

oftherecommendationsoftheInternationalEnergyAgencyDataServicesin2007(electricpower),theUNEPguidelines(heatingoil,fuel,naturalgas)anddatapublishedbyamajorHungarianpaperproductionfactory.

Magyar Telekom Group’s Energy consumption CO2 emission [tCO

2]

2005 2006 2007 2008 2009 Change compared to the previous year (%)

DIRECT ENERGY CONSUMPTION

Naturalgas 16,665 15,664 13,731 15,672 14,616 -6.74

Heatingoil 4,873 3,949 3,579 2,579 2,876 +11.52

Fuel(diesel) 8,471 7,686 8,150 8,745 9,066 +3.67

Fuel(gasoline) 6,462 6,452 6,454 6,882 6,782 -1.45

Fuel 14,933 14,138 14,604 15,627 15,848 +1.41

Emission by total direct energy consumption 36,471 33,751 31,914 33,878 33,340 -1.59

INDIRECT ENERGY CONSUMPTION

Electricpower 80,666 79,947 89,210 95,111 95,462 +0.37

Distanceheating 4,047 3,024 2,311 2,448 2,530 +3.35

Emission by total indirect energy consumption 84,713 82,971 91,521 97,559 97,992 +0.44

Emission by total energy consumption 121,184 116,722 123,435 131,437 131,332 -0.08

CO2 emission caused by Magyar Telekom Group’s paper consumption [tCO

2]

2005 2006 2007 2008 2009 Change compared to the previous year (%)

Newpaper[tCO2] 6,571 3,100 3,354 3,287 1,421 -56.77

Recycledpaper[tCO2] 28 40 54 33 44 +33.03

Total CO2 emission caused by paper consumption 6,599 3,139 3,408 3,320 1,465 -55.88

0102030405060708090

100110120130140

th ton 2005 2006 2007 2008 2009

127.784119.86

126.843134.756 132.796

Cumulated CO2 emission of Magyar Telekom Group



LandscapeeffectsTheGroupconsidersitimportanttopreservetheoriginalfeaturesofthelandscapeandtheenvironmenttothegreatestpossibleextentwhenimplementingitsinvestmentprojects,andensurethatitsfacilitiesfitinwiththelandscapeasmuchaspossible.Asinthepreviousyears,theCompanystrives,subjecttotechnicalandfinancialconditions,tolaycablesundergroundandreplaceexistingarialcablesbyundergroundnetworks.In2009majorityofnewlyinstalledcableswerelayedunderground.

Inorderforustobeabletoprovidepropermobileservices,itisinevitabletobuildtowersandbasestations.Thepriorityisgiventousingtowersthatfitinwiththelandscapeandbeusedjointlywithotheroperators,thusde-creasingthenumberofnecessarytowers.TheratiooftowersusedjointlybyMagyarTelekomGroupandotheroperatorsin2009was76.3%,andincaseofMagyarTelekomPlc86.4%,whichdidnotchangecomparedtothepeviousyear.

ThenumberofbasestationsonGrouplevelincreasedby14%,causedbytheincreaseoftheservicearea.IncaseofMagyarTelekomPlc,theincreaseisapproximately9%.ThenumberofPRO-M’sbasestationsdidnotchange.

4.3. BiodiversityMagyarTelekomGroup’sservicesencompassthecountry’stotalterritory,thuscoverprotectednaturalzones,too.Whenconductingconstructionworkatnationalparksornaturereserves,theGroupalwaysstrivestoproceedwithextremecare,incontinuousconsultationwithlocalauthori-tiesandhavingstudiespreparedaboutthepotentialeffects,basedonmeasurements.Informationaboutnaturalreservesaffectedbynetworksisnotavailablenow,butaregisterisbeingdevelopednow.

Ontheotherhand,info-communicationserviceslargelysupporttheworkofenvironmentprotectionandnatureprotectionexperts,andcomeespeciallyhandywhenhavingtoquicklyandefficientlyrespondetoenvironmentaldisasters.

4.2. Water consumptionMagyarTelekomGroupcontinuestoconsumewateronlyforsanitarypurposes.TheGroup’swaterconsumptiondecreasedbymorethan15%in2009,whichisduetothedecreaseinthenumberofbuildings(duetosalesofproperty)andemployees.

0

100

200

300

400

500

600

700

th m3 2005 2006 2007 2008 2009

689 672

499 503

426

Water consumption, Magyar Telekom Group

Magyar Telekom Plc.

Emitel

T-Mobile

T-Kábel

KFKI IQSYS PRO-M

OrigoM Factory

TCG MakTel

Dataplex

BCN

EPT



Closeto75%ofthehazardouswastegeneratedbytheGroupin2009wasrecycled.Thehazardouswasteisalwaystransferredtospecializedfirmslicensedtomanageit.

MagyarTelekomPlc’sBudaörssiteisanexceptionfromtheabove,asitisequippedwithanactivatedsludgesewagetreatmentunit.Properopera-tionoftheunitisregularlyverifiedbychemicalandbacteriologicaltestsconductedincompliancewiththerelevantstatutorystipulations.

Asaconsequenceofalltheabove,membersofMagyarTelekomGroupdonotoutputanyuntreatedsewageintotheenvironment.

NoiseandvibrationTwopotentialsourcesofnoisearetobeaddressedinrelationtoouractivities.Oneistheoutdoorairconditioningunits,thenoiseofwhichmighttriggercomplaints,especiallyindenselypopulatedareas,duetopotentialtechni-calfaults.TheCompanystrivestoinstalllow-noiseairconditioningequip-mentandpreventunacceptablenoiselevelsbycontinuous,systematicmaintenance.Theothersourceisdieselemergencypowergenerators.Theseequip-mentareinstalledinsideourbuildingsandaremuffledbysoundproofingcovers,bymeansofwhichthepotentialityofexcessnoiseiseliminated.

4.5. Waste

HazardouswasteThevolumeofhazardouswastegeneratedbyMagyarTelekomGroupdecreasedby55%comparedtothepreviousyear.Thevolumeofhazard-ouswasteeachyearreflectsthetechnologicalupgradetrendsofthegivenyear,asthehazardouswastegerneratedbytelecommunicationtechnolo-giesconsistsmostlyoflarge,heavybatteriesuedfortechnologicalpowersupply.Inconnectionwithofiiceactivitiesusedprintingcartridgescanbementioned:In20096434pieceswereusedbyMagyarTelekomPlc.

4.4. Emissions

EmissionsintoairMagyarTelekomGroup’sactivitiesdonotdirectlyincuranypollutantemissionsintotheair.Theemissionofthegasfurnacesusedforheatingandhotwatersupplydoesnotreachthedefinedenvironmentprotectionlimits.Theyareconti-nouslymaintainedandmonitored.

Inordertoensurethecontinuityoftelecommunicationservices,dieselpowergeneratorsareinstalledatourexchanges.Theyrunonlyforverylimitedtimeperiods,thustheiremissionisinsignificant.

Inanefforttoprotectthestratosphericozonelayer,theozonedepletingsubstancesusedinsomeofourequipment(air-conditioners,firefightingsystems)havebeenreplacedbyenvironment-friendlyalternatives,asprescribedbythelaw.

Optimaloperationofvehiclesisensuredbyregularcheck-ups.

Emissionintosoil,surfacewaterandgroundwaterTheGroupdoesnotconsumeindustrialwater.Waterconsumptioncon-sistssolelyofwaterusedforsanitarypurposeandprovidedbythepublicwatersupplynetwork.Consequently,noindustrialwastewaterisgener-ated.Sanitarywastewaterisdumpedintothepublicsewagenetwork.Atsites,wherepublicsewagenetworksarenotinplace,wastewateriscollectedinnon-leakingundergroundseptictanks,incompliancewiththestatutoryrequirements.Thesesitesareunmannedexchages,visitedbystaffonlywhenrepairworkisneeded,thus,thevolumeofwastewatergeneratedisinsignificant.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

kg 2005 2006 2007 2008 2009

648,561

423,869

579,541

542,404

1 898,814

995,196

943,968

599,361

424,223

316,240

Amount of hazardous waste and recycled hazardous waste,Magyar Telekom Group

Hazardous waste Recycled hazardous waste



TelecomunicationwasteCustomersdemandtowardstelecommunicationservicesurgemembersoftheGrouptocontinuouslydeveloptheirtechnologies,whichcallsforthereplacementoftheirobsoleteequipmentandnetworkelements.Inlinewithpreviousyears’practice,equipmentthusreplacedaresold,astelecommunicationwaste,tofirmsspecializedandlicencedtohandlethem.ThevolumeoftheGroup’stelecommunicationwasteincreasedby6%comparedtothepreviousyear.AmogthemembersoftheGroup,MagyarTelekomPlcgenerated17.2%moretelecommunicationwaste,whichincludesthatofT-Kábel,whichhasimplementedmajordevelopments.MagyarTelekomPlc’srelevantdataiscloseto97%ofthatofthetotalGroup.

Inaddition,MagyarTelekomwishestodecreaseitsenvironmentalfootprintbycollectingbacktheinformationandcommunicationdevicesitsellsaftertheirusefullifecycles.Byrecycling/utilizingolddevices,itispossibletoavidthatvaluablerawmaterialsbecomewaste,andtoensurethattheneedtoproducethemthroughminingisdecreased(tantalum,gold,wolfram,tin).Asaresult,theburdenontheenvironmentattachedtominingisdecreased.

In2009,MagyarTelekomPlccontractedanewpartnerforthetaskofremovalofIT-andmobile-phone-relatedwaste,therefore,thetypesofdifferentwaste,includingmobilephones,werenotregisteredincourseofremoval.Asof2010,anewprocesswaselaboratedwiththeaimtomoni-torrecycledmobilephones.Accordingly,ouryear.2010reportwillincludeinformationontheexactnumberofrecycledmobilephones.

In2009,86.35%ofallITdevicesandmobilephonessubjecttoproductfeesandcollectedbackbyMagyarTelekomwererecycledthroughacoordinatingentity.

MunicipalandotherwasteThevolumeofMagyarTelekomGroup’smunicipalandotherwastedecreasedbymorethan35%comparedto2008.Thedecreaseisduetothedecreasingheadcountandanincreasingratioofselectivewastemanagement.Selectivecontainersareavailableattwomoresites,thusaltogetherat10officebuildings(morethanhalfofMagyarTelekomPlcemployees).Thevolumeofwastepaperdepositedforrecyclingmorethantripledcomparedtothatofthepreviousyear.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

kg 2005 2006 2007 2008 2009

2,098,2631,892,302 1,779,999

523,628 555,180

Telecommunication waste released for recycling, Magyar Telekom Group

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

m3 2005 2006 2007 2008 2009

25,802 26,771

29,695 28,113

18,129

Amount of communal/residual* waste, Magyar Telekom Group

Magyar Telekom Plc.

Emitel

T-Mobile

T-Online

T-Kábel EPT

IQSYS PRO-M

OrigoM Factory TCG

MakTel

* From 2009 contains not only communal waste but also other residual waste that is nor technological neither hazardous waste (used furniture, waste from construction works etc.).

Dataplex

BCN

KFKI

Cardnet



Theratioofrecycledpaperisbelowtheplan,asthecostsavingsmeas-uresprimarilyhitproductsmadeofrecycledpaper(likecalendars).

Alltheabove,coupledwiththeincreaseofthecompany’ssize,serviceportfolioandterritorialcoverage,arethecausethatthecarbondioxideequivalent,insteadofdecreasingby10%astargeted,changedtotheoppositedirection.

Inordertoachievethecommittedclimateprotectiontarget,MagyarTelekomGroup’sManagementCommitteedecidedtoprocure35GWhofrenewingenergy,whichis15%oftheGroup’stotalelec-tricityconsumption.TherespectivecontractwasconcludedbytherelevantunitofMagyarTelekomin2009.

4.6. Environmental objectives and costsWhencalculatingtheindicators,onlythedataofthoseGroupmembersweretakenintoaccountthatwerepartofMagyarTeekomGroupintheyearservingasbasisforcomparison.(Thus,PRO-M,Mfactory,[origo],KFKI,IQSYSarenotincluded).

Pro-rated achievement of Magyar Telekom Group’s environmental targets

Target area Target 2008-2011 Pro-rated target Partial achievement 2009 actual (December 31.)

Paperconsumption -20% -13.33% -58%

Ratioofrecycledpaper +25% +16.67% +14.83%

Municipalwaste -20% -13.33% -38.96%

ElectricpowerconsumptionOfficeTechnology

-4%-30%

-2.67%-20%

+7.01%

Naturalgasconsumption -5% -3.33% +6.44%

FleetfuelconsumptionDieselGasoline

-3%-3%

-2%-2%

+11.24%+5.08%

Carbondioxideequivalent -10% -6.67% +4.69%

Paperconsumptiondecreasedduetoamorewidescopeapplicationofelectronicadministrativemeansandthecostdecreasingmeasuresof2009.

Thevolumeofmunicipalwastesignificantlydecreasedduetothede-creaseoftheheadcountandtheroll-outofselectivewastemanagement.Consumptionofelectricityincreasedduetonewbasestations.Naturalgasconsumptiondidnotsignificantlychangefrom2008to2009.Theincreasefrom2007to2008wascausedbythemildweatherin2007andthecolderwinterof2008.

Theincreaseinthefuelconsumptionofvehiclesiscausedbytheincreaseoftheserviceterritory.

Operative costs (285 million HUF)

Environmental investments (37 million HUF)

Education, training, communication,PR (23 million HUF)

Cost related to environmentalmanagement systems (20 million HUF)

Payments to authorities (22 million HUF)

Environmental expenditures in 2009, Magyar Telekom Group

Legend:–partiallyachieved–partiallynotachieved


4.7. T-Mobile for the cyclistsCyclingisnotonlyasportandanincreasinglypopularexerciseamongthosepursuinghealthylifestyles,butalsothebestformoftransportationfromenvironmentprotectionaspects.Whatismore,itisthefastestwaytotravelintrafficjamsoflargecities.

T-Mobilesettheobjectiveofpromotingahealthyandsportywayoflife,whichhelpstoprotecttheenvironment,thus,thecompanyiscommit-tedtosupportingcycling.Thegoalistostrengthenamentalityofsocialresponsibility,environmentprotectionandhealthylivingthroughpromot-ingcycling.Forthispurpose,wesupporteventsthatgiveusachancetoreachthosewhoatthispointintimearemerelyinterestedincycling,healthylifestylesand/orenvironmentprotection.

T-Mobilecyclingeventsinnumbers:The4T-MobileTopMarathondistanceintotal:798kmTotalelevation:20,275mTotalmilageofparticipants:320,000kmBythat,theparticipantshavevirtuallycycledaroundtheEarth8times!Coldestrace:Szilvásvárad4C,constantrainHottestrace:DunaMaraton42C,hotandsunnyNumberofparticipantsattheT-Mobilecyclingevents:morethan10,000Visitors,fans:140,000Viatelevision,printedmediaandinternet,morethan1,200,000peoplefollowedtheevents.

Lastyear,T-Mobileintroducedanovelty.T-Mobile’sBikeRepairshopstartedatSzekszárd,andthenprovidedfree-of-chargeservicingatseverallocationsinBudapest,aspartofwhichprofessionalstookcareofminorrepairsinfewminutesperbycicle.The„MegantaTentonFiveLegs”wassetupatpopularlocations,includingtheWesternRailwayStation,Nép-ligetontheoccasionoftheSeptemberfest,thekick-offeventoftheBiketoWorkprogramandthe5thBigSportsChoiceevent,whichattratced17800youths.


Oneofthemajoreventsduring2009wastheSzekszárdT-MobileBicycleDayheldinthemiddleofJuly.DifferentcyclingeventstookplaceatthecapitalofTolnaCounty,offeringentertainmenttoallagegroupsandcommunities.Severalhundredsofpeopleparticipatedatthenumerouslocationsoftheprogram.Inadditiontothehikesandphysicalchallengelocations,weinvitedpeopletoademonstration,bywhichwestrovetodrawattentiontoenvironmentprotection,theimportanceofcyclingpathsandeducatingtheyoungabouthealthylifestyles.

FollowingEuropeanexamples,theMinistryofTransportorganizedtheBiketoWorkprogramslastyearagain,whichwassupportedbyT-Mobile,too.10-13thousandpeopleparticipatedateachprogram.

Weadvertisethecyclingeventsamongouremployees,too,bysmsande-mailnews,postersandintranetarticles.

Cyclingisbothalifestyleandacommitment.Thosewhoridebicyclesfeelresponsibleforthemselvesandtheenvironmentatthesametime.

Cycling events in 2009

Bikeexpo RailwayMuseum March27-29

T-MobileBikeRepairshopI. Budapest April10

T-MobileBikeRepairshopII. Budapest April24

T-MobileBikeRepairshop Budapest,KrisztinaBlvd. May15

TOPMarathonPressConference Budapest May25

T-MobileBikeRepairshop Budapest,KrisztinaBlvd. May29

TOPMarathon/Szilvás Szilvásvárad May30-31

BalatonBikeFest Balatonfüred,Tihany June24-28

TOPMarathon,Danube Visegrád July4-5

T-MobileBikeDaySzekszárd Szekszárd July8-11

T-MobileBikeRepairshopIII. WestRailwayStation July18

T-MobileBikeRepairshopIV. Budapest July25

TOPMarathon/Bükk Eger August1-2

TOPMarathon/Mátra Sástó August29-30

T-MobileBikeRepairshop Septemberfest,Budapest,Népliget September4-5-6

T-MobileBikeRepairshop BiketoWork,openingevent September14

TOPMarathon/Awardceremony Budapest October21

Wien-BudapestSupermarathon Wien,Budapest October19-23

Bécs–BudapestSzupermaraton Bécs,Budapest October19–23.

Köszönjük, hogy 2009-ben is velünk kerékpároztál!Az igazi természetvédô az, aki tudja, hogy a világot nem a szüleinktôl örököltük, hanem gyermekeinktôl kölcsönözzük.(John James Audubon)

Együtt. Veled

Tekerj a Földért!

koszonjuk_2009.indd 1 2009.09.28. 9:41



5. Employees

5.1. Talent management 525.2. Workplace health and safety 535.3. Human right, equal opportunity 555.4. Managing changes 575.5. Human resources indicators 585.6. Involvement of employees 60

Employees

ThequalitypolicyofMagyarTelekomGrouprenewedin2009,itsHRstrategyrenewedin2007,andthevalue-basedsystemsinplaceatthecompany(CorporateValues,CodeofConduct,SocialCharter,DiversityPolicy)determinethevaluesandmanagementapproachwhichthemanagersandnon-managerialemployeesoftheCompanyareexpectedtopursue.

Theincreaseofbusinessefficiencyisachievedthroughstimulationoftheperformanceoftheemployees,thedevelopmentofmutualtrustandrespectbetweenemployerandemployee,andthecreationandmainte-nanceofaworkingenvironmentthatensuressafeworkperformanceandgivesemployeesopportunityforself-fulfillment.Theimportanceofthecorporatevaluesdemandsrecognitionandutilizationoftheindividualandpersonaldifferencesofallstakeholders(shareholders,custom-ers,employees,suppliers).Thecompanyisadoptinganapproachthatacceptsdiversitywithoutbiasorprejudice.Anopenandrespectfulcorporateculturewillbecreatedinwhichtheindividualisgivenfreedomtorealizehisideasandsatisfyhisneeds.TheDiversityPolicyadoptedinOctober2006stressesthecommitmentofMagyarTelekomtoconsistentidentificationanduseofthedevelopmentpossibilities.

Tothisendthegroupplacesspecialemphasisonthemaintenanceandfurtherdevelopmentofpartnershipwithboththeemployeesandtheem-ployeerepresentationbodies.MagyarTelekomiscommittedtoupholditsemployeesguaranteedrights24andtoensureasafeworkingenvironment.

Inrecognitionofourresponsibleemployerinitiatives,theCompanywonaBestEmployerAward:wewereranked3rdinthelargecompanycategoryattheemployeesatisfactionsurveyconductedbyHewitt-Világgazdaság.


5.Employees

24GuaranteedrightsofemployeesmeansensuringrightsfixedinLaborCode,MagyarTelekomSocialChartaandagreementofcollectivebargaining.

Krisztina TölösiSeniorExpertHRCompetenceCenter

– What do you do for Magyar Telekom to be a sustainable company? –AmajorpartofHRworkisaroundresponsibleemployerissues,butthisaspectreallytookaconsciouslyofficialformbytheissuanceoftheSustainabilityReport.Thequestionnairesandtheindicatorshelpustoputourworkintocontextandpointoutwhatisstillmissing.Wehavemanagedtofindtheanswerstomanyissues:theFamilySupportProgram(colloquiallyknownastheNurseryProgram)waslaunched,as

wellastheinitiativeaimedatsummercamps.TheInternshipProgramcontinues,asitisimportanttoattractandretainyoungtalent,andsodoestheMumsProgram.Thisyearitisthethirdtimethatwepartici-pateattheCivilAuction.ButIalsoputourprofessionalremunerationstructureintothiscategory,asitisbuiltonfair,competence-basedandanti-discriminatoryprinciples.MagyarTelekom’sfilmclubcalled“Sza-badazÁ”,whichalwaysaddressessensitiveissues,isalsoaninitiativethatismostlybuiltonvolunteerism(beyondworkinghours),andnotonlyonbehalfoftheemployees,butalsotheguests,whoarewell-knownopinionleadersandarereadytodothisonavolunteerbasis,becausetheyfeelthatweaddressimportantissues,workforagoodcauseanddoitintherightformat.– How do you contribute to sustainable development when you are not at work?–Whenwehadourapartmentrestoredtwoyearsago,wehadacondensationfurnaceinstalled,whichutilizestheheatgainedfromthechimney.Wealsostrivetouseenergy-efficientdevices,lightbulbsintheapartmentand,ofcourse,wecollectwasteselectively,accept-ingtherelatedinconvenience,i.e.thefactthatplasticbagsfullofthegarbageoftenpileupbeforewegetachancetotakethemtothecollectionfacility.Ourneighborhoodestablishedanassociationwiththepurposeofkeep-ingourenvironmentclean.Theassociationisrunbyvolunteers:weallvolunteertoparticipateinthechildren’sprograms,ragweederadicationefforts,playgroundandsportsfieldconstructionworks,aswellasevenpaintingtheworntoys.

Employees


TrainingisbasedonthemodernmethodologiesandmethodscurrentlyappliedinHungary.TheCompanyconsidersitimportantthatknowedgeandexperienceoftheindividualbecombinedintoorganizationalknowl-edge.Forthispurpose,inadditiontothetraditionaltrainingmethodsdescribedabove,itprovidesaproactiveandinnovativedevelopmentenvironmentthatinspiresnewideasandtheirimplementationinpractice,aswellastheirefficientapplicationbythecompany.

Distancelearning,asaformoftrainingandeducationaidedbyITCsolutions,playsanimportantroleatMagyarTelekomGroup.MostoftheCompany’strainingcoursestobetakenperiodicallyormandatorilyaredonethroughdistancelearning.Thelearningmaterialsandthee-learninginfrastructureareaccessiblethroughtheinternet,too.DistancelearningisthetypicalformoftrainingattheGroup,whenitcomestomandatorycoursesoronesconcerninglargenumbersofparticipants.

Significantemphasisisputonindividualdevelopment,thatiswhyoneoftheobjectivesofmanagementdevelopmentistodevelopmanagerstoactascoaches.Thisdevelopsthemanagersandtheirreportsalike.By

The5mainobjectives,whichalsosupporttheimplementationoftheCompany’sHRstrategyareasfollows:1.Establishingandstrengtheningaserviceculture2.RepositioningtheMagyarTelekombrands:T-Home,EmployerBranding3.Adoptingaperformanceculture4.Onecompany–oneculture5.Knowledgeretention:introducingalternativeformsofdevelopment

AllemployeesofMagyarTelekomGroupareprovidedwithtraininginorderforthemtopossessup-to-dateknow-hownecessaryfortheirwork,andthekeycompetenciesidentifiedwiththeirjobs.Trainingplansatbusinessunitleveldefinethedirectionofdevelopmentactivities,professionaltrainingcourses,skillsandcooperationdevelop-mentprograms,managementdevelopmenteventsandconferencesofthethegivenyear.

InadditiontotheperformanceindicatorsusedintheSustainabilityReport,thecompanyalsousessomespecialprofessionalindicatorstomeasuretheperformanceoftheHRarea,monthly,quarterlyorsemi-annually.Besidetheindicators,employeesatisfactionsurveys,ISOandinternalauditsalsoservethepurposeofcontrollingtheprocesses

Furrherinformationisavailableat:http://www.telekom.hu/static/sw/download/minosegpolitika_en.pdfhttp://www.telekom.hu/static/sw/download/Social_Charter.pdfhttp://www.telekom.hu/static/sw/download/Diversity_Policy.pdfhttp://www.telekom.hu/static/sw/download/Magyar_Telekom_Eselyegy-enlosegi_Terv_2008_2010_en.pdf

The“PartnershipforSafeEmployment”documentisaccesibleat:http://www.ommf.gov.hu/index.php?akt_menu=225

„CommittedprofessionalsreadytotakeinitiativearethekeybusinesssuccessfactorofMagyarTelekomGroup”MagyarTelekom’sHumanResourcesVision

5.1. Talent managementMagyarTelekomGroupplaysadecisiveroleinHungary’sICT(informa-tionandcommunicationtechnology)sector.Inthisknowledge-intensiveindustry,itisinevitablethattheknowledgeofmanagerialandnon-man-agerialemployeesbeupdated,expandedandtheirskillsbedevelopedcontinuously.ThatiswhyMagyarTelekomGroupputsspecialemphasisontheconstanttraininganddevelopmentofitsemployees.Thesetraining/developmentprogramsaredesignedandimplementedonthebasisofthedemandcommunicatedbythedifferentbusinessunitsandtheobjectivesidentifiedbytheCompany’strainingstrategycoveringtheperiodof2008-2010.

0

10

20

30

40

50

60

% 2005 2006 2007 2008 2009

Magyar Telekom Plc. Crnogorski TelekomMakTel Group

57.7

28

55.6

32

22

9.9

24 25.94

43

Ratio of distance learning25 by Magyar Telekom Group

0

2

4

6

8

10

12

nap 2005 2006 2007 2008 2009


9.18

7.339.2

5.2

1.1

7.3

11.6

3.53

8.02

Student days per capita by Magyar Telekom Group

25Numberofdistantlearningdaysinalllearningdays.


http://www.telekom.hu/static/sw/download/Social_Charter.pdf

http://www.telekom.hu/static/sw/download/Diversity_Policy.pdf

http://www.telekom.hu/static/sw/download/Magyar_Telekom_Eselyegyenlosegi_Terv_2008_2010_en.pdf

http://www.telekom.hu/static/sw/download/Magyar_Telekom_Eselyegyenlosegi_Terv_2008_2010_en.pdf

http://www.ommf.gov.hu/index.php?akt_menu=225

Employees


5.2. Workplace health and safetyMagyarTelekomPlc,asanemployerthatconsidersitselftoberespon-sibleforitsemployees’health,putsspecialemphasisonsafework,theestablishmentofsafeandhealthyworkenvironmentandworkplaces,evenbeyondtherelevantstatutoryrequirements,therefore,itcontinuouslyseeksfurthermeanstoincreasesafetyandpromotepreventiveandproca-tivehealthcare.

TheratioofemployeescoveredbythePerformanceManagementsystemis100%atthemothercompany.ThecalculationofthebonusduetoanyemployeeofMagyarTelekomPlcisbasedontheperformanceofcen-trallydetermined,aswellasindividualperformanceindicators.Subsidiarieseitherhavetheirownperformanceevaluationsystems(notallofwhichareeletronic)orapplythesamePMsystemasthemothercompanydoes.

CompetenciesandresponsibilityTwosystemsareinplacetoensurethatthepersonsdeterminingtheeconomic,environmentalandsocialstrategyoftheorganization(andallemployees,forthatmatter)holdappropriatequalificationsandexperi-ence:thejobgradingsystemandthecompetencesystem.(FurtherdetailsareavailableintheReportpublishedin2008.)

meansofthisworkingmethodyoucansignificantlystrengthenfeedbackcultureandempowerment.TheCompanyalsosupportsitsemployeesintheirstudiespursuedintheframeworkofthestateeducationsystembyconcludingstudycontractswiththem,thusprovidingfinancialsubsidyandsomereductionofwork-inghours.In2009,MagyarTelekomconcludedatotalof679contractslikethat,including20aimedatschooling,10duetomodificationsandtheremaining649whichareconnectedtocoursesoragreementscontaina-ingmutualcommittements.

Inanefforttoinjectnewknowledgeintotheorganization,theCompanyhasputinplaceaninternshipprogramcalledStartingBlockin1995,withanaverageof20participantsannually,duringthepast14years.Thelearningperiodspentatthedifferentorganizationalunitspromotestheindividuals’developmentthroughtheirexperiencegainedon-the-job.Weprovidetheprogramtostudentsofacademiceducationinstitutesinlinewiththesemesterstructureofthegiveninstitute.TheCompanyoffersdozensofstudentseachyeartheopportunitytomeettheiracademicworkexperiencerequirementsbyworkingfortheCompany,orconsulttheCompany’sexpertswhenwritingtheirtheses.

Managersareprovidedwithdevelopmentopportunitiesintheframe-workoftheManagementinChange,ChangeinManagementprogramseries.Theprogram’sstructureisdesignedtohelpmanagerstoacquirethenecessaryskillstodeveloptheirpeopleandimprovetheirpeoplemanagementskills.

BothmanagerialsuccessionandprofessionaldevelopmentplaykeyrolesinpromotionandtalentmanagementinthethecontextofMagyarTelekom’sHRpolicy.MagyarTelekomrunsseveraltalentmanagementprogramsaimedatthedifferentspecificobjectives.(HRPolicy)Inordertoensuresustainably,highperformanceandservicequality,MagyarTelekomGroupsupportsskillsdevelopmentservingtheinterestsofboththeemploeesandtheCompany.Atthesametime,MagyarTelekomGroupputsemphasisonandreinforcestheconceptthatemployeesarepersonallyresponsibleformaintainingandimprovingtheiremployability.(SocialCharter,section8)

0

5

10

15

20

25

30

35

40

pcs 2005 2006 2007 2008 2009


2123

16 15

3

20

2

21

25

4

10

Number of work accidents by Magyar Telekom Group

Employees


MagyarTelekomPlc’slaborsafetyexpertsworkinclosecooperationwiththelaborsafetyagentsappointedforthepurposeofprotectingemploy-ees’safetyandhealth.Thelaborsafetyagentsactivelyparticipateinoperationallaborsafetytasks,too.

MagyarTelekomPlc.runsanintegralsystemofrecordingworkplaceac-cidents.Statisticalreportsincludeaccidentdatarelatedtolostworkdays,inlinewiththenationalreportingrequirements.Theappropriateregulation,thecontinuouslywideningrangeofavailableprotectivegearandthetrainingprovidedtoemployees,aswellasthetechnologicalimprovementsallcontributetothefavorablechangeinaccidentstatistics.AccidentsresultingindeathordismembermentdidnotoccurinHungaryandMacedoniain2009either,andinadditiontohavinganaccidentratiooflessthan4permillincourseoftheprevious4years,whichisbetterthanatpeerorganizationsinHungary,therelevantindicatordecreasedfurther:in2009was3permill.InMontenegroonefatalityoccurred.

In2009,MagyarTelekomPlc.fulfilleditslaborhealthcareobligationsintheframeworkofacontractconcludedwithDIMENZIÓHealthcareFund.Pursuanttothecontract,DIMENZIÓHealthcareFundprovidedstate-of-the-artlaborhealthcareservicestoemployeesat38facilitiesat33settle-mentsuponconsiderationofemployees’placeofwork.Insummary,wecanstatethattheexplosivedevelopmentcharacterizingtelecommunica-tiontechnologiesimpactedallaspectsofouractivities,includingphysicalaptitudetests.Testfocihavechanged.Moreemphasisisputonquestionsaddressingworkandlifequality.MagyarTelekomputsspecialemphasisonservicesadditionaltoonesprovidedinthecontextoflaborsafety,liketestinggeneralphysicalstatusofemployees,providinghealth-relatedinformationandconsultancy.

TheLaborSafetyOfficehaspreparedmethodologicalguidelinesregard-inghowtodetermineandassesstherisksattachedtotelecommunicationactivitiesandworkplaces,aswellastemplatesforthepurposeofsumma-rizingthefindings,uponconsiderationoftheguidelinesissuedbyOMMFandtherecommendedGemanWEKAmethodology.Thus,itisnowpos-

neticfieldsnearaerials,whichwaspreparedbytheorganizationalunitinchargeincooperationwiththeLaborSafetyOffice.Bytheissuanceofthedirectivesin2009,thesetofrequirementsattachedtolaborsafetynowcoversallrelevantaspects,isinlinewithEUandHungarianlawandiscontinuouslyupdatedtoremaincompliant.

Theintegratedregulationoflaborsafetyrequirementsandproceduresprovidesabasisforsafeworking,however,inordertopreventaccidents,therelevantknowledgemustalsobeacquiredbytheemployeesinasophisticatedandefficientmanner.Forthispurpose,in2009,theLaborSafetyOfficemadematerialsincludinglaborsafetyinformationaccessi-blebyemployeesatitsintranetsitewithoutanylimitationintimeorplace.Thoseinterestedmayfindgeneraltheoreticallaborsafetyinformationandmaterialsmainlyintendedforexpertsofthesubjectmatter.ThesetoflaborsafetytrainingcourseswassupplementedbyanewsolutionasofNovember2009.EmployeesworkinginofficesortheT-Shopsareoffereddistancelearningasaformofperiodicallaborsafetytrainingbettersuitedtoindividuals’requirements.

Incourseofworkingontelecommunicationnetworks,aerialtowersorincableducts,itisinevatiablethatdifferenttypesofprotectivegearbewornbyemployeestothuspreventaccidents.In2008and2009,specialemphasiswasputonthegearprotectingemployeesfromfallingoffstructures.Wepurchaseddifferenttypesofprotectivegearfortheemployeesinquestion.Previously,mandatoryuseofprotectivegearselectedbythelaborsafetyunitwaspartoftherutine,however,thealreadymentionednewpolicyallowsemployeestoplayactiverolesinensuringtheirsafetybyselectingthegearbestsutinedtothespecificworkingconditionsatthelocationoftheworktobedone.Duetotheintroductionofthenewtypesofgear,thereissignificantlylessriskofemployeesfallingoff,andemployees’attitudetowardswearingtheprotectivegearimprovedasaresultofconsultationwiththemandtheiractiveparticipation.

TheactivitiespursuedbyMagyarTelekomemployeesencompassawiderangeofdifferenttypesofwork,includingworkdoneontraditionalundergroundandabovegroundnetworkelements,aerialtowers,aswellasnon-technicalofficejobsinvolvingworkingoncomputers,thus,itisofutmostimportancethatauniformsystemoflaborsafetyrequirementsandproceduresbeinplace.

Inorderfortheabove,MagyarTelekomPlc’slaborsafetyunit,theLaborSafetyOfficeelaboratedandissued,in2008-2009,asetofdirectives,includingthegeneralandcomprehensiveLaborSafetyPolicy,applica-bletoallemployees,aswellasthedirectivesthataddressthespecificstipulationsgoverningthemostimportanttypicalactivities(workingwithscreens,workinghighabovetheground,workingincableducts).Oneofthedirectivesaddressesthesafetyaspectsofworkinginelectromag-

0

2

4

6

8

10

12

14

16

18

pcs 2007 2008 2009


9.1

12.1

17.5

4.6

2.3

3.5

2.33.2 3

Work accidents per 1,000 employees

Employees


5.3. Human rights, equal opportunityMagyarTelekomGroup’sSocialCharterdefinestheprinciplesthatserveasthebasisfortheCompanyinaddressinghumanrightsingeneral:http://www.telekom.hu/static/sw/download/Social_Charter.pdf

TheMagyarTelekomGrouprecognizesandrespectsthecultural,socialandlegaldiversityofthenationsandsocietiesandiscommittedtoupholdinginternationalhumanrights.(SocialCharter,section1)

TheCodeofConduct,renewedin2008,alsoincludestheprinciplesofequalopportunityandanti-discrimination,aswellasenablingemployeestofilecomplaintsasdescribedintheCode.Therulesoffilingandinvesti-gatingcomplaintsaredescribedbyMagyarTelekom’sCodeofConduct(Annex3.).AllMagyarTelekomemployeesaretoreadtheCodeanddeclareinwritingthattheyareawareofandshallcomplywiththeprinciplesdefinedbyit.

ItisagoalofprimaryimportanceofMagyarTelekomGrouptoensureananti-discriminatoryworkplaceandequalopportunity.Inordertosupportandachievethatgoal,theCompanyhasbeenrunningseveralprogramsforyears.Inanefforttoestablishasystemencompassingthemeasuresandprogramsrelatedtoequalopportunity,andalsotoimplementanynewmeasures,MagyarTelekomadoptedatwo-yearEqualOpportunityPlanintheautumnof2008,togetherwiththecollectivebargainingpartners.(http://www.telekom.hu/static/sw/download/Magyar_Telekom_Eselyegy-enlosegi_Terv_2008_2010_en.pdf).

In2009,nocomplaintswerefiledregardinganydiscriminatoryconductorviolationofhumanrightsviaanyofthechannelsdefinedeitherbytheEqualOpportunityPlan(EqualOpportunityAgent,representativesofthecollectivebargainingpartners)ortheCodeofConduct(MagyarTelekom’s

MagyarTelekomfirmlyrejectsallformsofillegallabor(Partnership,article1).Itconsidersthelifeandphysicalintegrityofitsemployeesthemostvaluableassetofthenationaleconomy,consequentlyitfulfillsallthebasiclaborsafetyrequirementsandprovidessafeworkingconditionsforthemthatdonotimpairtheirhealth.(Partnership,article2.,SocialCharter,section9)MagyarTelekomrefrainsfromenteringintocontractorsubcontractwithsuchentrepreneurswhoseriouslybreachemployeerightsandfailtocomplywiththeminimumlaborsafetyrequirements.(Partnership,article3)TheCompanyrefrainsfromviolatingthelaborrulesandtheminimumlaborsafetyrequirementsjusttoreachamoreadvantageouspositioninthemarketcompetition,andrefrainsfromusingsuchpriceswhichdonotcoverthewageandwagetaxesoftheemployeesandthecostsofcompliancewiththelaborsafetyrequirements(e.g.appropriatetecnology,personalsafetyequipment).(Partnership,article4)ThehighlevelofsafetyofitsemployeesisakeyfocusforMagyarTelekom,asistheobservanceoftherequirementsofprovidingsafeworkingconditionsforthemthatdonotimpairtheirhealth.Therefore,MagyarTelekomemployslaborsafetyofficersandaspecialorganizationisdedicatedtothemattersoflaborsafetyandoccupationalhealth,aswellastothedevelopmentofalaborsafetystrategyandtargets.(Humanpolicy,Partnership,article7.,SocialCharter,section9)

sibletosurveyandannuallyreviewtherisksattachedtotheworkplacesandactivitiesoftheemployeeslocatedatdifferentsettlementsacrossthecountryinastandardmanner.

In2009,theprioritywasgiventodeterminingthecausesofstressandpsycho-socialdisordersatcustomerserviceworkplaces.Pursuanttothesurvey,OMFI,asanexternalconsultantrecommendedwaystodecreasestressatwork.In2010,oneofouradditonaltasksistoimplementtherecommendationsaswidelyaspossible.

Injobswherethebiologiocalrisksidentifiedbythesurveycanbeef-fectivelyandefficientlyreducedbyvaccination,MagyarTelekomprovidesfree-of-chargevaccinationwiththehelpofphysiciansprovidingwork-placemedicalservices.Aspartofthiseffort,290peoplewerevaccinatedagainsttick-borneencephalitisin2009.OneofthechallengeslastyearwasthepreventionofaH1N1epidemic,especiallyintheopen-spaceoffices.Aspartofthenewcorporatepan-demicplan,thecompanyprovideditsemployeeswithvaccinationagainstthenewtypeofinfluenza.Respondingtothedemand,thephysiciansprovidingworkplacemedicalservicesvaccinated2145peopleagainstH1N1in2009.

MagyarTelekomcontinuedtoconsiderparticipationinnationwidehealth-careinitiativesimportantin2009,too.TheLaborSafetyOffice,onbehalfoftheemployer,coordinatedtheparticipationofdifferentbranchesandfieldsofresponsibilityofthecompanyininitiativesaimedatestablishinghealthyworkplaces.In2009,MagyarTelekomwontheHealthyWorkplaceAwardoftheAmericanCahmberofCommerce(AmCham)inthegiantcompanycategory.WealsowonaHeart-friendlyWorkplaceAwardinthelargecompanycategory:wewereamongthetop3atthecontestheldbytheNationalHeathcareDevelopmentInsititute.

http://www.telekom.hu/static/sw/download/Social_Charter.pdf

http://www.telekom.hu/static/sw/download/Magyar_Telekom_Eselyegyenlosegi_Terv_2008_2010_en.pdf)

http://www.telekom.hu/static/sw/download/Magyar_Telekom_Eselyegyenlosegi_Terv_2008_2010_en.pdf)

Employees


continuetheirstudiesintertiarytechnical,businessorlegaleducationinstitutions.

InDecember2009,MagyarTelekomparticipatedagaininthe„CivilAuc-tion”event.Pursuanttotheevent,in2010,asensitizationprogramshallbeimplemented,incooperationwithSzempont(PointofView)Founda-tion,aimedatfamiliarizingemployeeswiththedifficultiesfacedby(prima-rilyvisually)disabledpeople.Aspartoftheprogram,employeescangethands-onexperienceaboutthechallengesoflivingwithvisualdisability.

Duringthespringof2009,incooperationwithOthernessFoundationrunbytheLegalDefenseBureauforNationalandEthnicMinorities(NEKI),wereviewedMagyarTelekom’srecruitmentandselectionpracticefromtheaspectofcompliancewithanti-discriminationrequirements.AccordingtotheexpertsofNEKI,MagyarTelekom’srecruitmentandselectionprocessandthesupportingsystemsareincompliancewithanti-discriminationrequirements.In2010,weplantotestthesystemsinpracticeincoopera-tionwithNEKI.

Thereisnospecificprocessforhumanrightsscreeningofinvestmentagreements,butSocialChartareferstonewgroupmembersafteracquisi-tionalso.

Observanceoftheworkingandrestingtimesisabasicrightandarequirementofpreservationofthehealthoftheemployees.MagyarTelekomlaysspecialemphasisongrantingappropriaterestingtimetoitsemployees,issuethemtheholidaystheyareentitledtobylawandtorecordworkingtimetruetoreality.(Partnership,article5.,SocialCharter,section7)MagyarTelekomacknowledgesthattherighttowageisoneofthemostfundamentalemployeerights,andapplieseverylegalmeanstoensurethatthewagetheemployeesareentitledtoispaidproperlyandontime.(Humanpolicy,Partnership,article6.,SocialCharter,section6)

ThesummercampprogramjointlymanagedbyMagyarTelekomandDimenzióMutualFundandadvertizedbytheslogan„It’ssummeragain!”wasconductedforthethirdtimethisyear.Theprogram,startedin2007,offersdiscount-pricesummercampsforsmallchildren(ages7-14)ofemployees.In2009,425Telekomkids(twiceasmanyasin2008)spenttimein11camps.Thepricediscountrangesbetween50-70%.

InNovember2009,the3rd“TelekomMumsEvent”,includingpersonalHRCustomerService,tookplaceforemployeesnurturingtheirchildrenathome.65employeesonmaternityleaveand28childrenattendedtheprogram,wherekidscouldbeleftunderprofessionalsupervision.Thefeedbackreceivedinwritingabouttheeventwasverypositive.TheeventispartoftheTelekomMumsProgramaimedatenablingtheyoungmoth-erstolearnaboutthechangesattheirworkplace,keepinformedaboutjobvacanciesandreceivesupportinreturningtowork.

Therangeofdiscount-pricenurseryandkindergartenplacementoffersintheframeworkoftheprogramlaunchedincooperationwithDimenzióinsuranceCompanyandMutualFundforthebenefitofTelekomemploy-eeswithchildrenaged1-7,called“FamilySupportProgram”continu-ouslywidened.Atthelaunchoftheprogramin2008,6nurseriesandkindergartenshadbeenavailable,whichincreasedto18bytheendof2009,andthenumberofchildrenparticipatingintheprogramdoubled.In2009,aproximately100Telekomkidswereplacedinnurseriesandkindergartens.Therateofpricediscountis66%.

MagyarTelekomwontheFamily-friendyWorkplaceAwardoftheMinistryofSocialAffairsandLaborinthelargecompanycategory.

WecontinuedtosupporttheRomastertalentmanagementprogramlaunchedbytheHungarianBusinessLeadersForum(HBLF)in2008.TheprogramassiststalentedRomayouthsinthesecondaryschoolto

EthicsLine,email,personalfilingofcomplaintwiththeComplianceDirec-tor).WearenotawareofanycomplaintsfiledagainsttheCompanywiththerelevantauthority(EqualTreatmentAuthority)either,whichemployeesmaycontactdirectly,andnoproceedingswerelaunched.PotentialcomplaintsfiledanddecisionsmadeagainstthecompanywouldtriggerfinestobepaidbytheCompanyandnegativepress,whichcanunderminetheCom-pany’spublicperception.

In2009,5eventstookplaceatMagyarTelekom’sEqualOpportunityFilmClubcalled„SzabadazÁ”.Sinceitslaunchin2006,theclubhasaddressedequalopportunityissuesinatotalof16cases,topicsrangingfromreligiousintolerance,domesticviolenceorthedifficultsituationofthedisabledandtheirfamilies.Theeducativedocumentariespresentedandtheaccompanyingdiscussionhasanaudienceofabout40-60employeesperevent,eitheronlocation,orthroughtheintranet.In2009,thefollowingissueswereaddressedbythefilmclub:religiousintolerance(hinduism,buddhism);domesticviolence;politicsinthefamily;immigrantsinHun-gary;parentingdisabledchildren.

Attheendof2008,anemployees’counselingprogramwaslaunchedunderthenameofABIGÉL,intheframeworkofwhichHRofferstheopportunitytoemployeestoseekhelpandadviceinsolvingtheirprivateproblems.Theprogram,whichfallsintothecategorycalledEmployeeAssictancePrograminWesternEuropeandtheUnitedStates,isuniqueamongthecompaniesoftheHungariancompetitivesphere.Theprogramisstructuredinawaythatemployeescanposttheirproblemsthroughthededicatedintranetchannel,evenanonymously,andtheanswerisprovidedbyaninternalconsultants’networkdrawingonthediversequalificationsandexperienceofthecolleagues.About12-16problemsareraisedeachmonthandanswers,suggestionsareprovidedin3-4days.

Employees


5.4. Managing changesRegardingdraftsofdecisionsaboutchangesthatincurorganizationaltransformationorimpactalargergroupofemployees,thetradeunionandtheworkcouncil(CentralWorkCouncil)mustbeconsulted.Thecollectivebargainingbodieshave15daystoprovidetheircomments.Themeasureinquestioncannotbeimplementedduringthis15-dayperiod.Tradeunionsandworkercouncils(CentralWorkerCouncil)mustbecon-sultedregardingdecisiondraftsaimedatorganizationalchangeswithoutregardtothenumberofemployeesconcerned.Ifthesignificantorganizationaltransformationdoesnotimpactanycomponentsofemployees’employmentcontracts(job,placeofworketc.),thenanoticeistobesentoutunderthegeneralobligationtocooperate,butnospecificdeadlineisdefinedbyeithertheLaborCodeortheCollectiveAgreement.MagyarTelekom’sstandardpracticeisthatemployeesareinformed,beforethechangestakeplace,atemployeeforums.Individualnoticesarealsoprovidedtotheemployeesbeforethechangestakeplace.TheaboveapplytoMagyarTelekomGroup’saffiliatesseatedinHungary,towhichMagyarTelekomNyrtprovidestheHRservices.Foreignaffiliatesinformtheircollectivebargainingpartnersandemployeesinaccordancewiththestipulationssetforthbythelocalstatutes.

TheMagyarTelekomGroupiscommittedtotheabolishmentofexploitingchildlaborandguaranteesthatitalwaysobservestheminimumageofenteringemploymentwithinMagyarTelekomGroup,incompliancewiththelawsofthecountriesconcerned.(SocialCharter,section4)

ForcedandcompulsorylaborThelaborpracticepursuedbyMagyarTelekomGroup’saffiliatesisinlinewiththeprinciplesbanningforcedandcompulsorylabor,adoptedaspartoftheinternationaltreaties.MagyarTelekomGroup’saffiliatescomplywiththestatutesanddecrees,banningforcedlabor,effectiveinthedif-ferentcountries.MagyarTelekomGroup’saffiliateshandlethepersonaldocumentationofemployeesonlyaslongasnecessaryinrelationtotheiremploymentanddeterminingremuneration,incompliancewiththestipulationssetforthinthedataprivacylawsofthecountriesconcerned.Nocomplaintswerefiledin2009withtherelevantauthoritiesagainstMagyarTelekomGroup’saffiliatesinthecontextofforcedlabor.NoproceedingsorinvestigationswerelaunchedagainsttheCompanyinthisregard.

MagyarTelekomGroupemphaticallydeclaresthatitopposesanyformofforcedlabor.(SocialCharter,section3.)

FreedomofassociationandcollectivebargainingMagyarTelekomGrouphasacknowledgedinitsSocialCharterthefreedomofassociationandtherighttocollectivebargaining.MagyarTelekomstrivestomaintainadialogueandcooperationwithemployeerepresentativebodiesbasedonopennessandtrust.TheSocialCharterandthelong-standingrelationshipbetweenMagyarTelekom’smanage-mentandtheemployeerepresentativebodiesaretheguaranteethattherelevantrightsareobserved.94%ofthegroup’semployeesinHungary,68%inMacedonia,99%inMontenegroareinthescopeofagreementbycollectivebargaining.Besides540employeesinMacedoniaareunderthescopeoftheGeneralCollectiveAgreementofPrivateeconomySector(withtheseemployeestheratioinMacedoniais92,6%).

MagyarTelekomiscommittedtopromotingtheenforcementoftradeunionrightsanddoesnothindertheformationandoperationoftheemployeerepresentationbodies.MagyarTelekomiscommittedtoseekingnegotiatedsettlementtoanylabordisputesandwillonlyresorttolegalconsequencesifthenegotiationsfailtoreacharesult.(Partnership,article10.,SocialCharter,section2)

ChildlaborIn2009,therelevantauthoritiesdidnotreceiveanycomplaintregard-inganymembercompanyofMagyarTelekomGroupforviolationoftheregulationsonchildlabor,norwasanyinvestigationorproceedinglaunchedonsuchgroundsagainstthecompany.TheprocedureofhiringemployeesatMagyarTelekomensuresthatallregulationsandprinciplesprohibitingchildlaborarefullycompliedwith.OnthebasisofthedataofDecember31,2009,MagyarTelekomGroupdidnotemployanyemploy-eesundertheageof18.

Employees


5.5. Human resources indicators

Program“Chance”continuesIn2009,wecontinuedtosupportemployeesdismissedaspartofdown-sizinginfindingnewemploymentintheframeworkoftheoutplacementprogramcalledProgram“Chance”.Aftercallingatoll-freenumber,thecolleaguesinquestioncanregistertoparticipateatdifferentlocations,fol-lowingwhichtheyareprovidedwithseveralservicesaimedatfindingnewemployment.Theprogramincludesa2-daylabormarkettrainingcourse,supportinactivejobsearch,financialaidtotrainingandretrainingeffortsinlinewithlabormarketexpectations,personalpsychologicalandlaborlawcounseling,aswellasfollow-upandmonitoringonparticipants’potentialplacement.Theinformationpackagecompiledforthebenefitofparticipants(called“ChancePackage”)improvesparticipants’chancesofsuccessfullyundergoingthechangeintheirlivesandhelpstheminfindingproperemployment.Program“Chance”hasbecomewellknownamongemployeesincourseofthepastyearsandfeedbackisabsolutelypositive.Theeffectivenessoftheprogramisshownbythefactsthatbe-tweenNovember2007andDecember2009,52%oftheemployeessub-jecttodownsizingregisteredtoparticipateand58%oftheparticipantseitherfoundplacementorstartedtheirownbusinesses.Theplacementratioisprobablyhigherthanthat,asfeedbacktousisnotcompulsory.

AgreementforefficiencyInSeptember2009,MagyarTelekomreachedanagreementwiththeemployeerepresentativebodiesregardingwageandheadcountissuesof2010.Thepartiesagreeduponacompany-levelperformance-basedbonusbudgetcorrespondingto1.5%salaryraise,whichislowerthantheinflation.Theagreementalsoincludesthat,aspartofitsefforttomeettheefficiencyimprovementexpectations,MagyarTelekomshallterminatetheemploymentofmaximum400employeesin2010.Thisquotadoesnotincludethosewhoseemploymentistobeterminatedduetolackofpotentialplacementafterhavingreturnedfrominactivestatus,terminationofmanagerialemploymentsandthosewho,havingexhaustedtheirstand-bystatus,retireexercisingtheirrighttoearlyretirement,old-ageretirementorearlycommencementretirement.Inaddition,anagreementwasreachedregardingthegradual,significantdecreaseoftheextraseverancepaystipulatedbytheCollectiveAgree-mentby2014.

Fluctuation by Magyar Telekom Group26

2007 (Plc./ Group)

2008 (Plc / Group)

2009 (Pl c / Group)

Totalfluctuation 8.2%/10.2% 19.1%/18.7% 12.1%/10.2%

Terminationinitiatedbyemployee 2.9%/4.2% 3.1%/3.9% 1.5%/2.2%

26Nodataisavailableinageandotherdistributions.

50005001,0001,500person

<25

26–30

31–35

36–40

41–45

46–50

51–55

>56

WomanMan

260 166

730 511

1,579 841

1,605 702

1,267 578

795 432

586 419

250 153

Age distribution of employees, Magyar Telekom Group

30

40

50

60

70

80

90

100

% 2005 2006 2007 2008 2009

98.8 96.3 96.7 96.4 96.7

Ratio of fixed-term vs open-ended employment at Magyar Telekom Plc.

Fixed-term employment Open-ended employment

Employees


0

20

40

60

80

100

% 2007 2008 2009

Hungary total

Subsidiaries in Montenegro Other foreign subsidiaries (Bulgaria, Romania, the Ukraine)

Subsidiaries in Macedonia

73.39

17.827.401.39

73.60

16.658.321.45

74.39

16.28.081.33

Regional breakdown of employees (%)

0

1

2

3

4

5

6

person 31–40 41–50 51–60 60–70

Board of Directors Supervisory BoardManagement Committee

Age breakdown of Magyar Telekom Group's Board of Directors, Management Committee and Supervisory Board

88

90

92

94

96

98

100

102

% 31–37(employees)

21–23(experts)

15–17(mid-management,

operational management)

12–14(strategic

management)

Women

Remark: the Chairman-CEO’s data is not included in the senior managerial figures due to his outstanding salary

Men

101.6

100 100 100 100

92.6

100.6

98.1

Base wage comparison by job-grades, Magyar Telekom Plc. (2009)

0

1

2

3

4

5

6

7

8

person Board of Directors Management Committee Supervisory Board

Locals Expats

Local/ expat breakdown of Magyar Telekom Group's Board of Directors, Management Committee

0

5

10

15

20

25

% 2005 2006 2007 2008 2009

Tele-work Part-timeFlex-time

2.92

14.46

6.76

2.28

6.87

5.98

2.38

7.1

5.3

3.66

5.83

4.31

3.8

7.7

1.2

Atypical forms of staffing at Magyar Telekom Plc.

Employees


Theknowledgelevelofcolleaguesaboutsustainabilityissuesismuchhigherthanthenationalaverage.Whilelessthan20%ofthepopulationsurveyedcoulddefinetheconceptofsustainability,in2008,morethan80%andin2009,morethan90%ofemployeescouldexplainwhatsustainabledevelopmentmeans.Morethan2/3knewtheexactdefintion.Thefiguresclearlyshowanimprovingtrend.

Thecorporatetelevisionseriesaddresescolleagues’environment-con-sciousnessasaseparatetopic,too.

5.6. Involvement of employeesIn2009,MagyarTelekomPlc.continuedtheeducationofemployeesaboutsustainabilitythroughseveralchannels:Thecorporatenewsletterdedicatedaseparatechaptertosustainability,describingtheGroup’ssustainabilityinitiativesandprograms.

Thecompany’sinternalclimateprotectioncampaigncontinuedin2009,drawingpeople’sattentiontothreatsofclimatechangeandurgingthemtotakeaction.Theinitiativehasitsownintranetsiteandforum.

Allemployeescanlearnaboutsustainabilityevents,publicationsandmajorinformationthroughthecompany’sintranetsite.

MagyarTelekomGrouphasputgreatemphasisoneducatingemploy-eesabouttheenvironmentforyears.Theattendancelevelsofenviron-mentprotectioncoursesof2009areshownbytheenclosedchart.

Theorientationprogramreceivedbynewlyhiredcolleaguesincludessustainabilityissuessince2009.

0

10

20

30

40

50

60

pcs 20092005 2006 2007 2008

Number of supplementarymodules

Number of independentcourses

1

21

25

22

44019

3118

16

Number of environment protection courses

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

person 2005 2006 2007 2008 2009

Number of participantsat independent courses

Number of participantsat supplementary modules

380

7,856

1,520

186 87 783

1,291

5,136

8,405

30

Number of participants at environment protection courses0

1

2

3

4

5

6

7

8

9

person Board of Directors Management Committee Supervisory Board

Man Woman

Gender Mix of Magyar Telekom Group's Board of Directors, Management Committee and Supervisory Board



6. Investor relations

Investor relations

Asummarypresentationisdevelopedfortheseniormanagementonthebasisofassessmentofinvestors’demandswhichispresentedattheManagementCommittee(MC)meeting,thentheMCsubmitsthedocumenttotheBoardofDirectorswheremajorityshareholdersreceiveinformation.Seniormanagersparticipateregularlyinthemeetings,road-shows,conferencesorganizedfortheinvestorsandanalysts,inthediscussionstheycanacquiredirectinformationabouttheinvestors’expectationsanddemands.

ThroughthesubsidiaryportfolioMagyarTelekomalsohasanownershipstakeandasanownerithastointegratetheneedsandinterestsofitsco-ownersintohisownstrategyandbusinesspolicy.Welearnabouttheneedsandinterestsoftheco-ownersintheframeofportfoliomanagement.Whennecessarythedeskofficersresponsiblefortheportfolio(Strategyareastaff)holdconsultationmeetings,requestinformationandprepareMagyarTelekom’sexecutivesforhigherlevelcoordinationmeetingswithco-owners.

Incourseofthedialogueconductedwithinvestorsandanalysts,thefollowingtopicsweretouchedupon:thecompany’sstrategy,long-termobjectives,annualgoalsmacro-economicenvironmentanditsimpactonthecompany’soperations

competitionindifferentsegments,majorcompetitors,marketsharesefficiency,measuresaimedatimprovingitexpansion/acquisitionopportunitiesutilizingthecash-flowgeneratedbythecompany(dividendpolicy,purchaseoftreasuryshares)

Theabovementionedthemesconstitutethecoreofthecommunication,theresponsesandassessmentsarethepermanentelementsoftheinvestorreports.Whensettinguptheordinaryandextraordinaryannouncementsthecontentsofthereportsmustbedevelopedincompliancewiththerequirementsoftheinvestors,bybearinginmindtheregulatoryrequirementsaswell.


Inadditiontothereports,IRpresentationsareprepared,too,withthepurposeofprovidingacomprehensiveviewonthecompany’soperation,financialstatusandstrategy,aswellastodrawattentiontomajorrecentchanges.

ResponsibleinvestorsaremoreandmoreinterestedinMagyarTelekomGroupeachyear.Responsibleinvestorsareoneswhotakeintoaccountenvironmentalandsocialimpactofcompaniesinadditiontoclassicfinancialandriskanalyses.

2009isamilestoneintheGroup’shistory,asthatwastheyearwhentheGroupfirstbecamepartofamajorinvestorindex.TheCEERIUS(CentralandEasternEuropeanResponsibleInvestmentUniverse)indexlaunchedbytheViennaStockExchangeincludesthosecompaniesofcentralandEasternEuropethatperformbestfromsustainabilityaspects.

OnthebasisofOekomResearch’sresponsibleinvestmentanalysis,thecompanyisrankedasaPrimeinvestment,i.e.itisrecommendedforinvestment.

MagyarTelekomhasbeenpartoftheCarbonDisclosureProject(CDP)since2009.Intheframeworkofthisglobalinitiative,thelargestcompaniesreporttheirclimateprotectionapproach,therelatedrisksandopportunities,aswellastheirCO2

emissionlevelstothelargestinvestors.Thesignificanceofthisprojectisshownbythefactthatin2009,itrepresentedinvestorswithatotalofUSD55000billioninassets.

6.Investor relations



7. Cooperations7.1. Professional cooperations 647.2. Cooperation in environment protection and social issues 657.3. Charters and principles 65

Cooperations

7.1. Professional cooperationsMagyarTelekom’snetworkofcontactsisquitediverse,basicallygroupedaroundthreecategories:Institutesofacademiceducation(BME,BCE,BMF,PPKTE,SZIEGyőr)CooperationwithstandardizationbodiesParticipationinprojectswiththepurposeofcollectinginternationalexperienceandexploitsynergies

Inpursuingourresearchanddevelopmentefforts,wefocusnotonlyontheimprovementofoperationalefficiencyandthecost-consciousintroductionofnewservices,buttheapplicationsofenvironment-conformtechnologies,too.

MagyarTelekomhasbeenincooperationwiththeBudapestUniversityofTechnologyandEconomicsintheareaofresearchanddevelopment,withthepurposeofdevelopingthemostefficientutilizationofcurrentandfutureradioaccessandtransmissiontechnologies.Asaresultoftheresearch,independentinnovativedevelopmentsolutionsandtheoreticalconsiderationsplayimportantrolesinpracticalnetworkdesign.

Integraltothemissionofimprovingtheknowledgeofyoungpeople,MakedonskiTelekomhasestablishedatraditionalpartnershipwiththeFacultyforElectricalEngineeringandInformationTechnology.Everyyear,wecontributetograntingthetraditionalawardsforthebeststudentsandsupportactivitiesnecessaryforpreparationforparticipationincompeti-tionsinthecountryandabroad.Thisyearalso,MakedonskiTelekomcon-tributedtograntingtheSocialEntrepreneurshipStudentAwardorganizedbytheAmericanChamberofCommerceinMacedonia.

SincetheCompany’sstrategyputsemphasisonstrengtheninginnova-tion,werecentlystartedthepracticeofjoiningstate-financedresearchanddevelopmentprojects(consortiums)incooperationwithourR&Dpartners(institutionsofacademiceducation,manufacturers,researchinstitutions),thedeliverablesofwhichcanbedirectlyutilizedinthecontextofourshort-termandmid-termdevelopmenttasks,thusenabling


ustopartiallyrelyuponbothprofessionalandfinancialexternalresourceswhenelaboratingtopicsimportantforMagyarTelekom.Thismodelhelpsustoefficientlyutilizeourinternalresourcesandsignificantlycontributestoacquiringknowledge.Theconsortiumthusestablishedisanunincor-poratedformofassociation,basedexclusivelyonthevoluntarycommit-menttotheachievementofadefinedprofessionalgoal.

TheMobileInnovationCenterpursuesresearchanddevelopmentaimedatfuturewirelesscommunicationtechnologies(3G/4G).Itisanorganiza-tionthathassophisticatedwirelesscommunicationenvironmentandtestingsystemsinplacetodevelopandteststate-of-the-artmobileappli-cations.Itinvolvesuniversities,industrialcompanies,smallandmediumenterprisesinitswork.Themaingoalsetbytheconsortiumthatpursuesitsworkintheframe-workoftheJedlikÁnyosProgramistheoptimizationofvisualsignaltransmissionoverwireandwirelessinfo-communicationnetworks,aswellaselaboratingandcomparingdifferentmeasurementmethodsaimedatmeasuringvisualquality.

AstoscientificorganizationsinHungary,weactivelyparticipateintheworkoftheCommunicationandInformationTechnologyAssociationandtheHungarianAssociationforInnovation,wherewerepresentMagyarTelekom’spointsofview.

UponMagyarTelekom’sinitiativeandunderitsgestoring,attheendof2007,theMobilityandMultimediaPlatformandClusterwasestablished,whichisacooperationamongacademiceducation,smallandmiddleenterprisesandmultinationalcorporationsaimedatthestrategicpurposeofbringingtogetherthefragementedHungarianmobileandmultimediatechnologyresearchanddevelopmentcapacities,thusstrengtheningthecompetitivenessofHungary’seconomy.

Cooperationindevelopmentsplaysanimportantroleintheharmoniza-tionofwireandmobilenetworkdevelopment,aswellasoperationandmaintenanceprojectswithinDTGroup(Hungary,Croatia,Slovakia,Macedonia,MontenegroandDeutscheTelekom).Theprimaryobjec-

tiveistoensureuniformityofequipment.Inordertoachievethat,whenjointprojectselaboratetheDTGroup-levelcost-optimizednetworks,forexample,commonterminalequipmentportfoliosareidentified,entitiescooperateontheintroductionofnewtechnologies(e.g.VDSL2,GPON),existingtechnologiesareassessedalongbusinessaspects,new-genera-tionnetworkconceptsarealignedwiththestrategy.ThejointlylauncheddevelopmentprojectsenableustoexploitGroup-levelsynergies,whileefficientlyutilizingfinancialandhumanresourcesandcontractpartnersjointly.Allthatisalsosupportedbythecommonprocurementstrategyframeworkelaboratedforkeytechnologicalplatforms.

Duringtherecentyears,internationalcooperationwithinDTGroupwiththeaimofexploitingGroup-levelsynergieshasbeenhandledasbeingofincreasingpriority,especiallyinthecontextsofadaptingdevelopmentresultstotheHungarianmarket,sharingproductlaunchexperience,aswellasharmonizingsupplierrelationsandprocurementprocesses,ifbusiness-wisejustified.Wecontinuetomaintainclosecontactswithourstrategicvendors,whichmakesitpossibletoreconciletechnologicalroadmaps,cooperationinthedevelopmentphase,obtaininginformationaboutexperienceonothercountries’markets.

Inordertolearnaboutinternationalexperience,wecontinuouslytakepartintheworkofinternationalstandardizationorganizations(ETSITISPAN,ITU,DSLForum,ETNO,GSMAssociation,UMTSforumandTheWirelessBroadbandAlliance)andresearchpartnerships(EURESCOMandBroad-bandForum(formerlyknownasDSLForum)).

MagyarTelekom,togetherwithseveralinternationalandHungarianedu-cationinstitutions(e.g.Polito,BME)andcompanies(e.g.FranceTelekom,PolishTelekom,NetvisorKft.)participatesintheNAPA-WINE(Network-AwareP2P-TVApplicationoverWiseNetworks)projectsupportedbytheEuropeanUnion(FP7).WorkstartedinFebruary2008andshalllastfor3years.Theproject’spublicwebsiteiswww.napa-wine.com.TheresearchisaimedatanalyzingthetrafficoverthecurrentlyavailableP2P-TV(Peer-To-PeerTV)applications,thenexaminingtheirimpactontheinternet,onthebasisofthefindings.

7.Cooperations

Cooperations


7.3. Charters and principlesBeyondcompliancewithstatutoryrequirements,MagyarTelekomissignatorypartytonumerouschartersandprinciples,thusvoluntarilycom-mittingtosolvingsocialandenvironmentalproblems.

InNovember2007MagyarTelekomjoinedtheCodeonOrganizationalDiversityandIntegrationinitiatedbytheHungarianBusinessLeaders’ForumandtheInternationalLabourOrganization.

MembercompaniesoftheabovementionedETNOSustainabilityWork-groupareallsignatorypartiestotheETNOSustainabilityCharter,whichembodiesourcommitmenttosustainabledevelopmentbyprovidingsustainableproductsandservices,alongwithenvironmental,socialandeconomicresponsibility.Thepartiesarecommittedtocontinuousim-provementandsharingbestpracticesinthefollowingareas:awareness,regulatorycompliance,R&D,procurement,accountability,cooperation,managementsystems,maintainingcontactswithemployees.

Notonlythetopic,buttheeventitselfwas“green”,asitwasawardedKvVM’sGreenfestivaltitle.Youcanreadmoreathttp://www.telekom.hu/society_and_environment/events/Sustainability_Day

7.2. Cooperation in environment protection and social issuesInadditiontoprofessionalchallenges,theGroupsuccessfullyseekscooperationtoaddresssocialandenvironmentalproblems,too.

TheGroupispartoftheHungarianBusinessLeadersForum(HBLF)indifferentways:EqualOpportunityWorkgroupHRWorkgroupEnvironmentPortectionandSustainabilityWorkgroup

MagyarTelekomisakeysponsorofMtdconsultantcommunity’snation-wideresearchinthecontextofequalopportunityatwork.

TheGrouphasbeenanactivememberofETNO’s(EuropeanTelecom-municationsNetworkOperatorsAssociation)SustainabilityWorkgroupforyears.Memberssupporteachotherinsolvingallkindsofproblemsrelatedtosustainability.Inadditiontothe3meetingsheldeachyear,aninternetportalalsohelpsjointworkandsharingbestpractices.

OnSeptember25,2009,itwasthesecondtimethattheSustainabilityDayeventwasorganized,undercoordinationbyMagyarTelekomandincooperationwithnumerousNGOs.Thisunusualconferencefestivalfocusedagainonsolutionsinsteadofproblems.Inaddtitiontoattendingaprofessionalexhibition,participantshadachancetodiscusssocial,environmentalandeconomicissuesatinterac-tivepresentationsdeliveredbyprestigiousexpertsofthetopics.Thedynamicprogramsweremadeevenmoreenjoyablebygames,contestsanddrummers.

http://www.telekom.hu/society_and_environment/events/Sustainability_Day

http://www.telekom.hu/society_and_environment/events/Sustainability_Day



8. Corporate citizenship8.1. Sponsorship 678.2. Institutional patronage 688.3. “Magyar Telekom Contributes” Program 688.4. Employees as corporate citizens 70

Corporate citizenship

8.1. SponsorshipThesponsorshippursuedbytheGroupisprimarilyaimedatofferingentertainmentofvaluablequalitytoitscustomers,butwealsosupporthigh-standardprofessionalconferences.TheGroup,asamajorsponsorofHungariancultureandcommunity,isreadytosupportevents,perform-ersandproductionsthatrepresenttopqualityintheirrespectivearts,andalsoassumesaroleproportionatetoitsbusinessmagnitudeinsponsor-ingsocialinitiatives.

TheeventcalledT-HomeChildren’sIslandwasthegreatestfree-of-chargefamilyprogramof2009,heldinBudapest,attheHajógyáriIsland,offer-ingexcitingprogramsforchildrenthrough5weekends.Wealwayspayspecialattentiontomakingsurethateventhosebeabletocometothe


T-HomeChildren’sIslandwhootherwisecouldnot,becausetheylivefarfromthecapitalortheirsocialbackgroundsjustdonotmakeitpossible.Forthisreason,incooperationwithNIOK(NonprofitInformationandTrainingCenter)weinvitedapplicationsfromnonprofitorganizationsorinstitutionsthatdealwithdisadvantagedchildrenlivinginthecountryside.ThankstoT-Home’scharitableaction,atotalof250childrenwholiveinthecountrysidevisitedtheChildren’sIsland,includingsomewhohadnevercrossedtheborderoftheircounty.

In2009,T-HomelaunchedacharitabletoydonationprogramforvisitorsofChildren’sIsland,asaresultofwhichmorethan150kilogramsoftoyswerecollectedandthanforwardedtotheprotégésoftheNationalAssociationofLargeFamilies,thewinnerofthetenderconductedincooperationwithNIOK.

Hungary’smostpopularleisure-timesportseventsaretheT-HomeVivicit-táUrbanPreservationRuns.In2009,therunstookplaceatBudapest,SzegedandKaposvár,andteamsfromprimaryandsecondaryschoolscouldparticipatealike.T-HomeofferedHUF100.000worthofsportsgear

vouchersateachlocationfortheschoolsthatsentthelargestteams.

ThestrategicpartnershipofMagyarTelekomandthepalaceofArtscontinuedin2009,too.MagyarTelekom,asacompanythatalsotakespartinfinancingtheoperationsofmuseums,supportedtheexhibitiontitled“Theother”aboutdicersityattheMuseumofEthnographyininthespringof2009.

TheCompanyalsosupportedthePressPhoto2008exhibition,aswellasResearchers’Night,incooperationwithTempusFoundation.Theeventofferedtheopportunitytopupilsandstudentsofdifferentagestogetfamiliarwiththeattractiveandexcitingaspectsofscience.

Wealsosponsoredtwowhole-yearconferenceserieslastyear.OnewastheHungarianConsumerPlatform’sconferences,intheframeworkofwhich,theorganizersaddressedconsumingpatternsofandapproachtodifferentlayersofsociety.TheotherwastheIt’sOurTurnconferenceseries,organizedbythePoliti-calSciencesInsitituteoftheHungarianAcademyofSciences,aimingtoinformthepublicaboutEUissuespromptedbytheupcomingHungarianpresidencyin2011.

T-ComMontenegroisthegoldsponsoroftheall-nationalsoccerteam,aswellasanexclusivesponsorofBuducnost,Montenegro’snumberonesoccerteam.Theyalsopayattentiontobringingupthesuccessors:in2009,T-ComsponsoredtheT-ComChildren’sCuporganizedforprimaryschoolpupils.T-MobileMontenegrohasbeensponsoringthemostsuccessfulsportsclubofthecountry,Buducnost-T-Mobilewomen’shandballteam,fortheseventhyear.Amongotherculturalsponsorshipactivitiesofours,the„ExYu”filmfestival,sponsoredbyT-Com,istobehighlighted.

MakedonskiTelekomhadsupportedthemostfamousandgloballyrecog-nizedculturalevent,theOhridSummerFestival,whicheveryyeargathersworld-famoustheatre,balletandmusicartistsandlastsfor40days.

8.Corporate citizenship



8.3. “Magyar Telekom Contributes” ProgramTheCompany’swiderangeofcorporatecitizenshipactivitiesareman-agedintheframeworkofthe„MagyarTelekomContributes”Program.Inadditiontodonations,theprogramincludeseducational,knowledgetransferandhigh-levelcooperations.

NGO Strategic Partnership Program

Amajorachievementoftherenewedmid-termsupportstrategyistheNGOStrategicPartnershipContestlaunchedinJuly2009.„MagyarTelekomContributes”Program’sBoardofTrusteesselectedthreeNGOsintworounds,withwhomtheCompanywilcloselycooperateinthefollowingthreeyears.TheseorganizationsareBluePointDrogCounsellingandOutpatientCenterFoundation,HospitalTeachers’AssociationandSzívlapátFoundation.Thestrategicpartnershipisforthreeyears,includesHUF10millionoffinancialsupporteachyear,thusensuringasolidfinancialbasisfortheNGOstopursuetheirprograms.

FinancialdonationsIn2009,morethanHUF118millionwasdonatedtoprogramsprimarilyaimedatsolvingproblemsofchildren,education,healthcareandsustain-ability.

8.2. Institutional patronageInlinewithourCorporateCitizenshipStrategy,werationalizedourinstitu-tionalpatronage:MagyarTelekomSymphonicOrchestra,themainsponsorofwhichisourcompany,wasrenamedConcertoBudapestandadoptedanew,sustainableoperationalmodelinDecember.

WeremainedfullyinchargeoffinancingtheoperationofPuskásTivadarTelecommunicationHighSchool(throughtheTelecommunica-tionTrainingFoundation).Thoughwewillnotbeabletoundertakethisroleinthelongrun,wewouldliketomaintaintheschool’seducationalqualitythroughfinancinganincentivesystem.

Togetherwiththeco-founderHungarianPostalServices,wecontinuedtofinancetheoperationoftheTelecommunicationMuseumFounda-tionanditsaffiliatedentities(PostalMuseum,StampMuseum,Te-lephonyMuseum)in2009,whilewealsoauditedthemandelaboratedamoreeconomicaloperationalmodel.

ConcertoBudapest

ThecompanyisalsoatraditionalsponsorofthebiggestinternationalsportseventinMacedoniatheOhridSwimmingMarathon;MakedonskiTelekomalsosupportstheSmallOlympicGameswhere1200studentsgettogetherfromalloverMacedonia.

In2009T-MobileMacedonia,amongothers,supportedtheFootballFed-erationofMacedonia,theMacedonianNationalWaterpoloTeamattheWorldWaterpoloChampionship,thetraditionalandmostpopularSkopjeJazzFestival,andtheinternationalethnofestival–EthnoSquarefestival–whichincludesfairfortraditionalproductsandartifacts.



InJanuary2009,theCompany,asoneofthemainsponsorsofNonprofitInformationandTrainingCenter(NIOK)Foundation’sdonationportal(www.adhat.hu),donated250PCstoNGOs,tothussupporttheiropera-tions.

InMay,MagyarTelekomjoinedthe@RCinitiativeandinvitedcompet-ingdrawingfromchildrenunderthetitleofChildrenARC+addressingsustainabilitytopics.Childrenwereaskedtodrawpicturesdemonstrat-ingwhatkindofworldtheywouldliketolivein30yearsfromnow.ThedrawingswereexhibitedoutdoorsinBudapestinJune,andgiantreplicasofthesixwinningdrawingsweremountedonfirewallsacrossthecountry.Thesixgiantfrescoswereinauguratedinthesummerof2009inbusystreetsofBudapest,Pécs,Szombathely,SopronandMiskolc.ThefirewallpaintingoftheTelekomDonationLinewascompletedinOctoberatSzeged,drawingattentiontothe1788charitablenumerandtheimpor-tanceofdonations.

The Foundation T-Mobile for Macedonia

Itisanon-profitorganization,foundedin2002tosupportandinitiatehumanitarianactivitiesanddonations.ItsmembersarevolunteersfromdifferentT-MobileMacedoniadepartments,andthefoundationstrivestocontributeinvarioussocialsegments,focusingprimarilyonchildren,healthandhumanitarianprojects.TheT-MobileforMacedoniaFoundationalsosupportstheMacedoniansocietybyopeningdonationphonenumberstohelpindividualsinneed,especiallyforurgentmedicaltreatmentsandorganizationswhoareengagedinanytypeofsocialactivity.In2009,atotalof12.4milliondenarswereraisedofwhich9.4millionfor34personsand14organizationsthroughthecompany’sdonationphonenumbers.InadditionT-Mobileemployeesalsovolunteerinenvironmentalactionsliketreeplantingandblooddonationactions.

CharitableServicesTariffPackageforNon-governmentalOrganizationsThistariffpackagewasintroducedinMarch2004,andservesthepur-poseofprovidingdomesticwirecallswithanaverageof30%discounttononprofitorganizations.Theorganizationsthushavethechancetospendthesavingsontheirprotégés.Thediscounttariffpackageisavailablefor100non-governmentalorganizationseachyear,selectedonthebasisoftheirapplications.

In2009,the“MagyarTelekomContributes”Program’sBoardofTrusteesdecidedtorespondetotherequestsofNGOsbysupplemetingtheNGOtariffpackagebytheCivilNetinternettariffpackagebymeansofwhichthewinningNGOscanusetheinternetwithoutpayinganystart-upormonthlyfees.NGOscouldcompetefortheCivilNETpackagetogetherwiththeNGOpackage.Thus,in2009,thecontestwasaimedatbothpackages.

Weputspecialemphasisonsupportingcounselinghelplinesbyprovid-ingfree-of-chargecall-incapability.In2009,thistranslatedintoclosetoHUF24millionsupportto11organizationsoperatingcounselinglines.

In2009,MakedonskiTelekomdonatedMaxADSLpackagesfor36loca-tionsoftheRedCross,forthepurposeofprovidingbettercommunicationandactivecooperationbetweenthenumerousRedCrossofficesinthecountry.

In2008,MakedonskiTelekomstarteditspartnershipwiththeCivicAssociation“WEBDoctors”bycreatingawebpage,whilein2009,ouremployeespreparedadditionalfunctionalsystemsofthecurrentfunction-alitiesontheWEBDoctorswebpageandasoftwareforadministering/managingcontentsandcustomers.Today,thiswebpageisoneofthemostvisitedpagesinthecountry.

CharitablenumbersBycalling1788,anyonecandonateHUF100topublicbenefitorganiza-tionsworkingonsolvingsocialproblems.Theserviceisfreeofcharge,i.e.thewholeamountdonatedistransferred,withoutaneffortmadetogenerateprofits,andrelatedcosts(VAT)arepaidbythecompany,andsignificantsupportisalsoprovidedtotherelatedcommunicationcampaignoftheorganizationsinquestion(e.g.publiccommercialfilm(TCRfilm),televisionandotherpresscoverage).

TheCause–therealrealityshowIn2009,withtheseventhandeighthseries,MagyarTelekom’scharityshowbroadcastonTV2reacheditsend.Theinitiative,launchedandfi-nancedbytheCompany,presentssocialproblemsandnon-governmentalorganizationsthataddressthemintheformofa“documentaryrealityshow”,duringwhichtheaudiencedecidebyphonevotingwhichcausewillreceiveMagyarTelekom’sHUF5milliondonation.Oneepisodepresentsfourcausesandfourorganizations.Allparticipantswin,sincethoseranked2nd,3rdand4thbythevotesgetHUF1millioneachfromtheCompany,andtherevenuecollectedbythevotingphonecalls(HUF20027)istransferredtotheorganizationranked1stbytheaudience.

27IncaseofDomino(prepaid)calls,VATisincluded.



Foundation.Employeesweregiventhechoiceofworkingintheirdirectenvironmentorataschoolorkindrgarten.In2009,499employeesfromallthedifferentorganizationalunitsvolun-teeredtoworkatatotalof14locations.

In2009,itwasexactly10yearsagothattheCompanystartedtoorganizevolunteerwork.Incourseoflastyear,volunteeringplayedamorepromi-nentroleintheCompany’slifethaninpreviousyears.Unlikebefore,weorganizedvolunteerworknotonlyinBudapest,butatthelargestsitesoftheCompanyinthecountrysideincooperationwiththeVolunteerCenter

8.4. Employees as corporate citizens TheMatchingDonationProgramisbasedontheconceptthatdonationfromindividualemployeesarematchedbyadefinedamountprovidedbytheCompany.Bymeansofthisprogram,theCompanyenablesemploy-eessensitivetosocialproblemstomakeresponsibledecisionsaboutthedonationsoftheCompany.(UptoHUF15000,theCompanycontributesadoubleamountoftheindividual’sdonation,betweenHUF15000-100000,itprovidesthesameamount,aboveHUF100000,itdonatesHUF100000.)

Thepastfiveyearsprovethatthissystemencourageourselves,asprivatecitizens,tobecharitable:UptoDecember312009,differentnonprofitorganizations,dealingmainlywithhealthcare,education,disadvantagedchildren,receivedclosetoHUF105millionworthofdonationsthankstothecharityofemployees.TheamountincludesthedonationsfromtheemployeesandthecontributionoftheCompanysince2001.Theamountofemployees’donations(andthustheCompany’scontribution,too)peakedlastyearwithHUF11.3millionfromemployees.

Csilla MártonSeniorCorporateCitizenshipManagerPRandBrandManagementDepartment

– What do you do for Magyar Telekom to be a sustainable company? –InmycapacityasCorporateCitizenshipManager,IlayspecialemphasisonhandingourNGOpartnersasequals.Iseriouslybelievethatwecancooperateinagoodatmosphereonlyonthebasisofmutualrespectandappreciation,whichisapreconditiontoefficientandcreativework.EvenwhenIamatwork,IpayattentiontominorbutveryimportantthingsthatIwouldexpectotherstokeepinmind,too:IswitchoffmyPCscreen,collectwasteselectivelyusingthecontainersintheofficesandinthecorridors,printaslittleaspossible,switchofflightswhenIleave,orwhenothersdo.:)

– How do you contribute to sustainable development when you are not at work? –Ofcourse,wecollectwasteselectivelyathome,too.(Actually,wehadtodesignatearoom,becausesometimeswecouldn’tmovefromthepilesofsqueezedPRBbottlesandbrochures.)Wehaverecentlyboughtacompostingtanktoprocessorganicwasteefficiently.Westrivetoeducateourkidsinthisspirit,andthere’sastorytoprovethatwesucceed:Iwasinarush,andmy6-year-oldsonwaswatchingmefromthebathroomdoor.WhenIranout,hecalledafterme,“Mommy,don’twastewater,turnoffthetap,itisnotsustainabletoleaveitrunning!”

Csilla Márton



9. Responsible data services9.1. Protecting children 729.2. Internet security 739.3. Addressing legal and ethical issues of content provision 73

Responsible data services

9.1. Protecting childrenTodayinternetisausefuleverydaysourceofinformationnotonlyfortheparentsbutalsoforchildren.Childrencaneasilyfindtheywayintheworldoftales,play,learnabouttheworldbyusingHandabandaChildren’sInter-netaninitiativeofT-Online.T-Online’schildreninternetsiteofferseditedcontentandprotectedinternetaccessforchildren.Theuserinterfaceisspeciallydesignedforchildrenwhichfacilitatessimplesurfingonthenet,thebrowserisprotectedwithapasswordapprovedbytheparentswhichpreventsaccesstoundesirablecontentandallowsaccessonlytousefulandinterestingcontentsdesignedforchildren.Interactivebooksforchildrenareanovelty,bymeansofwhichkidscanwritetheirowntales,illustratethetalesbydrawings,savethemorevensharethemonthepage.Incourseofplaying,theylearntousethemouseandthekeyboard.SubscriberstoHandabandaChildren’sInternetcanalsousethesecurechatforumofthepage,thusmakingsurethattheytalktoothersofthesameagegroupaboutappropriatetopics.Thewww.handabanda.husitealsooffersfree-of-chargecontent.

Thechatrooms(iwiw,origo,T-Mobile)arealsocontinuouslymonitoredbyundercoveroperators(whoparticipateinthediscussion).

Inordertopreventthatchildrenaccessadultcontent,theageoftheuserisdeterminedbyclickingatoneofthetwobuttons:above18ornot(VIDEAvideosharingsystem,T-Mobile).MagyarTelekomcontinuouslymonitorsitsadultcontentpagestopreventtheuploadofprohibitedpornographicmaterials.

Inordertoprotectchildren,MagyarTelekomintroducedachildlockfea-turewithitsT-HomeIPTVservice.Parentsmaylockadultcontenttomakesurechildrencannotaccessthem.ThesamefeatureisavailableforournewSatTVandT-Mobileservices.InDecember31st2009MagyarTelekomPlc.had1372childlockcustomers.


9.Responsible data services

Renáta Sallay ProductManagerConsumerMarketingDirectorate

– What do you do for Magyar Telekom to be a sustainable company?–Safeuseofmobilephonesbykidsandteenagerswasfirstraisedasanissuetwoandahalfyearsago.Sincethen,wehaveconductedseveralcampaignstodrawnattentiontorisksattachedtomobilephoneuseandthewaystoprotecttheseagegroups,whattheycandoaboutspasmandwhomtheycanturnto,ifharassed.Bymeansofourchildlockservice,weenableparentstoblockcontentinappropriateforunderageyouth.Thisseriesofcampaignswillofcoursenotstop.Wecontinuetocooperatewithdifferentorganizations,liketheFoundationforPediatricEmergencyCare,andalsostrivetoincreaseawarenessbypublicationsandevents.

– How do you contribute to sustainable development when you are not at work?–Webuiltourhouseinthespiritofsustainability:weappliedequip-menttoexploitrenewableenergysources,hadasolarcollectorinstalled,aswellasequippedthebuildingwithaspecialventilationsystemanddevicesusedforselectivewastecollection.Ifthereisaneedfornationwidecooperationandhelp,Ialwayscall1749,MagyarTelekom’sDonationLine.

Responsible data services


9.3. Addressing legal and ethical issues of content provisionBynowInternethasbecomeapublicutilitythatfacilitatestheexchangeofvariousformsofknowledge,information,goods,comfortservicesandentertainment.Withthespreadingofbroadbandinternetthepatternofusingaccessinternetundergoeschangeaswell,customersuseInternetmoreintensively,andmorefrequentlytoaccessvariousformsofcontents.

[origo]MediaandCommunicationsServicesCo.Ltd.-thesubsidiaryofMagyarTelekomGroupwhichisresponsiblefortheoperationof[origo]portal–isthefoundingmemberofMTEHungarianContentProviders’As-sociationandacceptsthebindingeffectoftheCodeofEthicsofContent.TheCodeofEthicsisavailableontheMTEhomepage:http://www.mte.hu/eng_egyesulet.html

[origo]MediaandCommunicationServicesPlc.holdsthelicensetograntallrightsofusefor[origo]databaseswherebythecompanyfollowstherecommendationsoftheCodeofContentProvisiontoprotectprivacyandintellectualpropertyandensureconductaccordingtotheCodeofEthicsofthecontentproviders.

BesidesthecommitmentsundertheAHCP,[origo]hasitsownCodeofEthics,whichisamended,revisedperiodically.

9.2. Internet securityT-Homeplaysanactiveroleinself-regulationinitiatives,too,andintro-ducedanumberofsolutionsservingfortheprotectionofthesubscrib-ersandinawidersensethecommunityofinternetusers.Forexample,antivirusprogramsareofferedtoallthesubscribersandfreemailusers,abasic,serversideanti-spamprotectionisoffered,andafull-scaleantivirusandantispamsolutionisprovidedtothesubscribersofT-OnlineInternetSecurity.Additionaltechnicalsolutionsareappliedaswell–amongoth-erssenderauthentication–torestrictproliferationofthespasm,preventfraud,provideinformationtotheinfectedsubscribers,andinextremecasesexcludethemfromtheservice.Numberofsubscribersusinganti-virusandinternetsecurityserviceswereover27thousandinDecember2009.

T-Mobilealsoprovidesinternetsecurityservices,enablingsaferbrowsingthroughmobileinternetaccess,whichplaysanimportantroleinincreas-inginternetpenetrationandtheevolutionofadigitalsociety,foritspost-paidcustomers(whomakeupmostofthemobileinternetsubscribers).

Intheautumnof2009,uponthejointinitiativeofT-HomeandT-Mobile,weprovidedfree-of-chargeCDswithasecuritysoftwaretoour45thou-sandnewinternetcustomers.

CustomerscansubscribetothedifferentinternetsecurityservicesinMagyarTelekom’sportfolio,whileupdatesareavailablefromtherelevantproviders(e.g.Microsoftdownloadcenter).

Inordertocategorizecontent,T-Mobileelaboratedanadultcontentcat-egprizationsysteminlinewiththeCodeofEthics.Contentsocategorizedcanbeblockedbytheuseofthechildlock.Inadditiontotheabove,therecommendationsandguidelinesofethicselaboratedforT-Mobileinformationservices,aswellastheCodeofEthicsforValue-addedserviceProvidersbothunderlinethatanycontentprovi-sionmustobservesocialvaluesandhumandignity.

In2009,[origo]launchedtheVideaKidvideoplayer/sharingsite,whichcarriesonlycontentforchildren.

T-MobileMacedoniaisactivelyinvolvedinchildprotectionontheInternet.Inordertoprotectitscustomersfromcontent(informationandphotog-raphy)withchildpornographyavailablethroughtheinternetandotherkindofservicesprovidedbyT-Mobile,ourcustomersareprovidedwiththeopportunitytosubmitthiskindofcontentwithsuggestionfortheirblocking.Thecompanyisprovidingprotectionontechnicallevelforblockingthecontentwithchildpornographycontentaswellasproviding24hourscontactpointsforreportinginappropriatecontent.HotlineswereestablishedforreportingabusivecontentincollaborationwithMacedo-nianNGOs.Technicalsystemsofthecompanyareenabledforblockinginappropriatecontent,usingtheserviceandlistprovidedbytheInternetWatchFoundation(IWF).

In2009,CrnogorskiTelekomalsoimplementedthistechnicalsolutionwhichreliesonfilteringwebsitesflaggedaschildpornography.Thecompanyalsoworkswiththelocalauthoritiesincaseswherechildpornographyisreportedtocallcenters.Onitswebsites,thecompanyalsoprovidestipsforparentsandyoungercustomersonhowtoprotecttheirprivacy,whenusingmobilephones.

http://www.mte.hu/eng_egyesulet.html

http://www.mte.hu/eng_egyesulet.html



10.Data protection

Data protection

MagyarTelekomPlc,asanelectroniccommunicationserviceprovider,handlestrafficandbillingdataofitsprivateandbusinesscustomersconfi-dentially,forthededicatedpurposeofprovidingservicesproperly.TheCompanyrespectsandprotectsthedataofcustomersincompliancewiththerelevantstatutes.MagyarTelekomPlc,asanelectroniccommu-nicationserviceprovider,handlestrafficandbillingdataofitsprivateandbusinesscustomersconfidentially,forthededicatedpurposeofprovidingservicesproperly.Inallphasesofdatamanagement,complieswiththedataprotectionstipulationssetforthinAct1992/LXIIIonProtectionofPersonalDataandFreedomofPublicData,Act2003/ConElectronicCommunication,aswellastheexecutivedecreesoftheaboveacts,especiallyGovernmentDecree226/2003(Xii.13)onSpecialtermsandConditionsofDataManagementbyCommunicationServiceProviders,theDataSecurityofCommunicationServicesandtheRulesofCallerIDsandCallForwarding.Theinternaldirective,inharmonywiththeabovestatutes,regulatestheprocessofdatamanagementforspecificpurposes,aswellasthedele-tion/anonymityrequirementsofthesupportingITapplications.MagyarTelekomPlcalsoensurestheprotectionofcustomers’personaldata,inlinewiththeavailableinternationalbestpractice.Inthiscontext,wetaketechnicalandorganizationalmeasures,incooperationwithotherserviceproviders,ifneeded,toensurethesecurityoftheprovidedservices.Thetechnicalandorganizationalmeasures,inlightofthebestpracticeandthecostsofthemeasures,representalevelofsecurityproportionatetotherisksattachedtotheserviceinquestion.Wealsotakethenecessarymeasurestopreventunauthorizedtapping,storageormonitoringofthecommunicationtransmittedortherelatedtransmissiondata,aswellasunauthorizedorinadvertentaccesstothecommunicationtransmittedortherelatedtransmissiondata(confidentialityofcommunication).


Inaddition,thereareinternalpolicies,processesandITsoftwareinplacetoensurethatpersonaldataofcustomersonlyappearinpublicdirecto-riesuponconsentbythecustomer.

In20094reasonablecomplaintsarrivedreferringtothehandlingofcustomers’personaldata.

CodeofConductfortheProtectionoftheIndividual’sRighttoPrivacyintheHandlingofPersonalDatawithintheDeutscheTelekomGroupcoversMagyarTelekomPlc.andallofitsHungarianandforeignmajoritysubsidi-arieswherecustomers’/employees’/shareholders’dataarehandled.

Inyear2009highprioritywasgiventoCustomerDataProtectionbyMakedonskiTelekom.Thefocuswastoindentifywhichpersonshavetheaccesstothecustomerdata,whattypeofaccessdotheyhave,dotheyhavethepossibilityformassdatadownloadsofcustomerdata,istheaccesstothecustomerdatacorrespondingtothejobpositions.Allproc-essesandcustomerdataapplicationshadbeenaudited.CompliancetotheDataProtectionLawhadbeenchecked.Measuresdefinedduringtheauditswereimplementedbytheresponsibleunits,increasingthelevelof

protectionofcustomerdataandtheawarenessamongemployeesandmanagers.Projectsforimplementationofnetworkaccesscontrol,unifiedendpointsecurityareongoingandexpectedtobeimplementedinyear2010.

AtT-MobileMacedonia,theinternaldirective–ThePrivacyCodeofCon-duct–regulatesallaspectsofhandlingthepersonaldataofcustomers,employeesandthirdparties.ThePrivacyCodeofConductspecifiestheprinciplesandrulesasgroundsforusageofpersonaldatainthecorpo-rateprocessesandtechnicalandorganizationalmeasuresthatthecom-panyundertakestoprovideproperlevelofdataprotection.ThePrivacyCodeofConductisavailabletocustomersonthecorporatewebsite.Also,directconnectionwithcustomersforexercisingtherightsasdatasubjectsisprovidedthroughadedicatede-mailaccount,wherecustomerscanpostinquiriesatanytimeandexercisetheirrightsregardingtheirdata.

AtCrnogorskiTelekom,datasecuritycoordinatorsaredelegatedfromdifferentbusinessunitsandaninventoryofcustomerdatalistswhichareusedindifferentbusinessprocesseshasbeenmade.Aninternalauditingtookplacein2009.Basedontheresultsmeasureshavebeenimplement-edorareongoingaccordingtothedefinedactionplan.FurthermorethecompanyadoptedanewCodeofConductoftheProtec-tionofPersonalData.Thecompanyhasalsoraisedawarenessinrelationtothedataprotection.

Youcanreadmoreathttp://www.telekom.hu/data_protection

10.Data protection

http://www.telekom.hu/data_protection



11.Safe use of mobile phones / Electromagnetic Fields

Safe use of mobile phones / Electromagnetic Fields

Attheendof2009,thenumberofmobilephonesubscribersinHungarywascloseto12million,inMacedonia2.5millionandinMontenegro1.5million.Beyondprovidinghigh-qualityservicestothesecustomersthroughtheGSMnetwork,inDecember2004,UMTSlicensesweredis-tributedamongtheoperatorsinHungary.Theroll-outoftherelatednew,largerdensitynetworks,however,mightdrawcommunities’attentiontotheissueofelectromagneticfields,whichmayincreasethesignificanceoftheCompany’sstrategyaimedataddressingthetopic.


TheelectromagneticexposurelimitsinHungaryhavebeendeterminedinlinewiththeguidelinessetbyICNIRP(InternationalCommissiononNon-IonizingRadiationProtection),whicharebasedonthepracticeap-pliedinmostEuropeancountriesandRecommendation1999/EC/519bytheEuropeanCommission.AsaresultoftherelevantHungariandecreeadoptedinAugust,2004(63/2004.(VII.26.–ESzCsM),theHungarianle-galstatusiscompliantwiththeEU’sregulationonelectromagneticfields.

WithinDeutscheTelekomGroup,issuesrelatedtoelectromagneticfieldsareregulatedaspartofDT’sEMFobjectives,theso-called„EMFPolicyRecommendations”,withspecialemphasisontransparency,informationprovision,supportingandparticipationinresearch.MagyarTelekomadoptedDeutscheTelekom’srelevantrecommendationasmandatoryregulationin2004.

AdedicatedEMFworkgrouphasbeensetupbyMagyarTelekom,whichmeetsregularlyandcontinuouslymonitorsEMF-relateddevelopmentsinHungaryandabroad,andrespondstoEMF-relatedquestionposedbyauthorities,residentsoremployees.FurtherinformationaboutT-MobileInternational’s“EMFPolicyRecom-mendations”adoptedbyMagyarTelekomisavailableinEnglishatthehomepageofT-MobileInternational.28

Intheframeworkofthispolicy,MagyarTelekomefficientlyaddressescomplaintsandinquiries.Furthermore,intheframeworkoftheCom-pany’soveralleducationprogram,eachnewemployeelearnsaboutelectromagneticfieldsaspartofthemandatoryorientationbriefing.

Mobilenetwork,networkdevelopmentAerialsofthebasestationsaremountedinawaythatemployeesnormallycannotstayinfrontoftheaerials,theydonothavetoworkintherelevantarea,passagewaysdonotcrosstheareasinquestion.If,inextraordinarycases,peoplemustpassorworkinfrontoftheaerials,whichistypicalincaseofexternalcontractors’work,likeincaseofrenovatingbuildings,safetydistancedataareavailable,measurementson-locationarepos-sible,andifjustifiable,theaerialsarerelocatedtemporarilyortheiroutputisreduced.

Iftheoperationandmaintenanceexpertswhoworkregularlyinthevicinityoftheaerialsdetectradioradiationofanunknownsource,theydeterminetheboundariesofthesafezonebytheirRADMANpersonalradiationdetectors,thusavoidinganyhealthrisks.Inordertoreducethenumberofsuchcases,attheendof2009,coopera-tionstartedamongAntennaHungáriaZRt.andthemobileoperatorswiththeaimtodefinejointlaborsafetymeasurestobetakeninthecontextofworkdonenearaerials.

Ifnecessary,thecomplianceofMagyarTelekom’smobilenetworkwithstatutorylimitsisverifiedbyindependentmeasurementbodies.In2009,morethan50on-locationnon-ionizationelectromagneticexpositionmeasurementstookplace,allofwhichfoundtheemissionlevelstobeundertherelevantlimits.

MagyarTelekomreconcilesandcooperateswiththerelevantconcernedpartiespriortoeverybasestationandtowerconstructionproject.Ifneeded,residentialforumsareheldwiththeparticipationofallconcernedpartiestoreachanagreement.In2009,weparticipatedatmorethan10residentialforums.

11.Safe use of mobile phones / Electromagnetic Fields

28http://www.telekom.com/dtag/cms/content/dt/en/585086

http://www.telekom.com/dtag/cms/content/dt/en/585086

Safe use of mobile phones / Electromagnetic Fields


DeutscheTelekom’severynationalaffiliateiscommittedtosupportingindependentresearchaimedatextendingourknowledgeonelectromag-neticfields.Forthispurpose,T-MobileInternationalsupportsaninterna-tionalresearchprogram,since2002,incooperationwithoperatorsintheUKandGermany,bymorethanEURO20million,inadditiontoEURO6millionprovidedthroughtheGSMAssociation.

TheabovemakesDeutscheTelekomGrouponeofthebiggestsupportersofresearchonthissubjectmatteringlobalcomparison.

ResearchExpositionoftheworld’spopulationtonon-ionizingelectromagneticradiationandepecromagneticfields(EMF)haveincreasedconsiderablyduringtherecentyears.Asacivilizedsocietycannotavoidtheuseofequipmentemittingnon-ionizingelectromagneticradiation,likemobiletelecommunicationequipment,satelliteandterrestrialtelevisionandradiobroadcasts,flightnavigation,meteorologicalsatellites,radioastronomy,spaceexploration,theexpositionoftheenvironmentandthepopulationisexpectedtofurtherincrease.TheWorldHealthOrganization(WHO)andseveralotherinternationalorganizations,aswellasresearchgroupsexploretheimpactoftechnologicaldevelopmentonhumanhealth.

Assumedhealtheffectsofmobiletelecommunicationhavebeenexploredandanalizedformorethantwentyyears.Scientificresearchhasnotsofarbeenabletoconfirmthatmobiletelecommunicationhasanynegativehealtheffectsonthehumanbody.

Thelargestscaleresearchundertakensofarinthiscontext,theWHO-IARCINTERPHONEProject,isstillongoingwiththeinvolvementof13countries.AccordingtoWHO’splans,radiofrequencyradiations,likethatofmobiletelecommunicationdevices,willbecategorizedbyIARC(InternationalAgencyforResearchonCancer)afterthecompletionoftheINTERPHONEProject,expectedin2010.

In2009,MagyarTelekomsupportedthefirstHungarianresearchonelec-tromagneticfieldsinvolvingpersonalradiationdetectingbymorethanHUF4million,andalsocontributedindirectlytoindependentresearchonhealtheffectsofmobilenetworksthroughitsmembershipinGSMAssociation.

CommunicationDespitethefactthattheradiationofMagyarTelekom’shandsetsandmobilebasestationsiswaybelowtheICNIRPemissionlimits,theCom-panyconsiderscommunicationtoemployeesandcustomersimportant29.Inthisspirit,in2009,threeinternaltrainingprogramswereheld,intheframeworkofwhichmorethan100colleaguesparticipatedatthepresen-tationsdeliveredbytheexpertof“FrédéricJoliot-Curie”NationalResearchInstituteforRadiobiologyandRadiohygiene(OSSKI),VODAFONEandMagyarTelekom.

Inadditiontointernalcommunication,in2009MagyarTelekomcon-tinuedtobeopentorespondtoanyinquiriesaboutsafeuseofmobilephones.TheEMFportal,establishedin2006andcontinuouslyavailablein2009,aswell,wasdevelopedincooperationamongthethreemobileopera-tors(http://www.emf-portal.hu).Attheportal,questionscanbeaskedregardingEMFissues,newsareavailableaboutthetopicandreaderscanaccessthefindingsoftheEMFmeasurementstheoperatorshavehaddonebyindependentproviders.TheCompanyalsorunsanotherhomepage(www.bazisallomas.com),wherevisitorscanfindanswerstoquestionsaboutthehealthcarelegalandtechnologicalimplicationsofelectromagneticfieldsandGSMsystems.

TheSAR30valuesofthedevicesareincludedintheusermanualstobefoundinthemobilesets’boxesandareavailableattheT-Shops,aswell.ThesamedataareaccessibleatT-Mobile’swebshopunderthedetaileddescriptionsofdevices.

29http://www.telekom.hu/society_andenvironment/society/health_and_safety30SARvalue(specificabsorptionrate)measuresthemagnitudeofenergyabsorbedinthetissues.

http://www.emf-portal.hu

http://www.telekom.hu/society_andenvironment/society/health_and_safety

List of abbreviations Assurance Statement Impressum

Abbreviation Full name

ADSL AsymmetricDigitalSubscriberLine

AmCham AmericanChamber

ÁSZF GeneralContractTerms

BCE CorvinusUniversityBudapest

BÉT BudapestStockExchange(BSE)

BME BudapestUniversityofTechnologyandEconomics

CD CompactDisc

CDP CarbonDisclosureProject

CEERIUS CentralandEasternEuropeanResponsibleInvestmentUniverse

CEO ChiefExecutiveOfficer

CIO ChiefInformationOfficer

CO2

carbondioxide

CR CorporateResponsibility

CSR CorporateSocialResponsibility

CsFkT GroupSustainabilityCoordinationCouncil

DSL DigitalSubscriberLine

DT DeutscheTelekom

EC EconomicPerformanceIndicators

EDR UniformDigitalradioCommunicationSystem

EFT ElectronicTrafficInformation

Eht ActonElectronicCommunications

EMF ElectromagneticFields

EN EnvironmentalPerformanceIndicators

e-RFX ElectronicRFX(RFX–collectivenameofRFI(requestforinformation),RFP(requestforproposals)andRFQ(requestforquotations)

ESzCsM MinistryofHealth,WelfareandFamilyAffairs

ETNO EuropeanTelecommunicationsNetworkOperators'Association

ETSI EuropeanTelecommunicationsStandardsInstitute

EU EuropeanUnion

EURESCOM EuropeanInstituteforResearchandStrategicStudies

GeSI Globale-SustainabilityInitiative

GKM MinistryofEconomyandTransport

GmbH GesellschaftmitbeschränkterHaftung

GPON GigabitPassiveOpticalNetwork

GRI GlobalReportingInitiative

GSM GlobalSystemforMobileCommunication



GVH EconomicCompetitionAuthority

GVOP EconomicCompetitivenessOperativeProgram

HBLF HungarianBusinessLeadersForum

HR HumanRightsPerformanceIndicators

HR HumanResources

HSDPA High-SpeedDownlinkPacketAccess

ICNIRP InternationalCommissiononNon-IonizingRadiationProtection

ICT Informationandcommunicationtechnology

IFRS InternationalFinancialReportingStandards

ILO InternationalLaborOrganization

IO InternalOperations

IP InternetProtocol

IPTV InternetProtocolTV

IR InvestorRelations

ISO InternationalOrganizationforStandardization

IT InformationTechnology

ITU InternationalTelecommunicationUnion

iWiW internationalwhoiswho

IWF InternetWatchFoundation

K+F Researchanddevelopment

KFKI CentralPhysicalResearchInstitute

Kft.(Co.Ltd) limitedliabilitycompany

KvVM MinistryofEnvironmentalProtectionandWaterManagement

LA LabourPracticesandDecentWorkPerformanceIndicators

MakTel MakedonskiTelekomunikacii

MISZ HungarianInnovationAssociation

MSZ HungarianStandard

MT Magyar(Hungarian)Telekom

MTE HungarianContentProviders’Association

MUPBED MultipartnerEuropeanTestBedsforResearch

Mvt. ActonLaborSafety

NAPA-WINE Network-AwareP2P-TVApplicationoverWiseNetworks

NEKI LegalDefenseBureauforNationalandEthnicMinorities

Nyrt.(Plc.) Publiclimitedcompany

P2P-TV Peer-To-PeerTV

PA ProvidingAccess(totelecomproductsandservices)

List of abbreviations


PC PersonalComputer

PCOC PrivacyCodeofConduct

PEMcell ProtonExchangeMembranecell

PPKE PázmányPéterCatholicUniversity

PR ProductResponsibilityPerformanceIndicators

PR PublicRelations

RFID Radio-frequencyIdentification

SAT-TV SateliteTV

SAR SpecificAbsorptionRate

SEC SecuritiesandExchangeCommission

SMS ShortMessageService

SO SocialPerformanceIndicators

TA TechnologyApplications

TCG TelekomCrneGore/CrnogorskiTelekom/TelekomMontenegro

TCR Publiccommercialfilm

TISPAN TIPHON+SPAN(TelecommunicationsandInternetProtocolHarmonizationoverNetworks+ServicesandProtocolsforAdvancedNetworks)

TM Performancemanagement

UMTS UniversalMobileTelecommunicationsSystem

UNEP UnitedNationsEnvironmentalProgramme

ÜB ManagementCommittee

VDSL Veryhighbit-rateDigitalSubscriberLine

VoIP VoiceoverInternetProtocol

WAP WirelessApplicationProtocol

WebEDI WebElectronicDataInterchange

WHO WorldHealthOrganization

Zrt. Privatelimitedcompany



Assurance Statement

B&P CSR Management 1022 Budapest

Törökvész Street 6/A

Assurance Statement B&P Braun&Partners CSR Management has carried out an assurance process commissioned by Magyar Telekom Nyrt. (hereinafter: Magyar Telekom, the Company) as an independent third party to audit the Magyar Telekom Group’s 2009 Sustainability Report (hereinafter: the Report). Scope The scope of assurance is to examine and confirm the relevance, credibility, completeness, and understandability of the Report, thus, increasing the stakeholders’ trust in the Company. Independence B&P Braun&Partners CSR Management did not provide any advisory services for Magyar Telekom Group during the period of time covered by the Report which would contradict to the principle of independence necessary for the present task. Verification Methodology The process and methods of the audit were developed following Global Reporting Initiative (GRI) G3 Reporting Guidelines. During the verification process we employed the following methods:

• According to the GRI G3 Reporting Guidelines, we examined whether the Report contains all the indicators that are required to attain Level “A”, checked the conformance of the GRI content index, and the adherence to the GRI reporting guidelines.

• We took a random sample and reviewed the source systems and documents, to assess the credibility of the information published in the Report.

• We arranged personal interviews* with the owners of the original data and information in order to gain insight with respect to the assumptions, information, and complex calculations contained in the Report.

• We evaluated the completeness and relevance of the Report based on the analysis of public and internal documents, the operational context, and industry-specific trends and issues.

• We evaluated the structure and readability of the Report from the point of view of the reader. Evaluation Based on the assessment of Magyar Telekom Group’s Sustainability Report, the review of background documents, and personal interviews, we make the following statements:

• The Report conforms to the preset requirements to attain GRI Level A+. We appreciate that the Report also contains information conforming to draft industry-specific indicators currently under development for the telecommunication sector.

• The Report was prepared in accordance with the GRI reporting guidelines. We evaluated the conformance with the GRI guidelines one by one (see the table below); we also made suggestions to further increase compliance.

• On the basis of the random sample of data and information sources, and personal interviews we did not find any sign that would doubt the credibility of the Report. The information published is well-established, and is supported with real initiatives and actions.

• The Report is extremely detailed, and covers the topics relevant in terms of sustainability extensively. We find it very positive that every year the Group involves more and more of its subsidiaries under the scope of the Report.

• The Report is essentially well-structured and logical; readers may easily find the information they need with the help of table of contents, tables, and references.

Proposed improvements Based on the examination of the Report and the personal interviews, we make the following improvement proposals:

• We suggest that the approach and practices with respect to stakeholder engagement should be introduced in a more detailed and structured way, indicating also which were the important issues raised by the stakeholders. In relation to this, we also propose to cover in more detail

how the Company reacts to the expectations of stakeholders, and how the Company uses the feedbacks and suggestions of the stakeholders to improve its operations.

• To make it easier to follow the improvements in sustainability performance, and to allow comparison of performance over time, we advise the Company to present its objectives and concrete goals concerning its sustainability performance, and their achievement in a structured table format (indicating also the reasons for not achieving particular objectives) – just like in case of their environmental objectives.

• In order to provide a more comprehensive picture on the Group’s sustainability performance, we suggest that the scope of the Report should include more detailed and structured introduction of its subsidiaries’ sustainability performance.

• In order to have a balanced presentation of important issues we propose – based on international practices – to cover the topic of responsible content providing in more detail.

• To facilitate understanding and assessment of the information presented in the Report, we suggest that the scope of the data presented (the included subsidiaries) should be consistent throughout the Report.

Compliance to GRI guidelines

Guideline Assessment Result

Materiality • The Report contains pieces of information relevant to the stakeholders; it gives an account on important issues in connection with the operation of the telecommunication sector, and on the approaches to tackle them.

Stakeholder Engagement

• The approach and practice concerning stakeholder engagement is not detailed and clear enough.

• The concerns of stakeholders, the answers given to them, and showing how their opinions were used to improve operations are not covered detailed enough.

Sustainability Context • The Report covers the most important topics concerning economic, social, and environmental sustainability.

Completeness

• The Report introduces the relevant topics concerning sustainability in a detailed and extensive way.

• The Report contains information on the performance of a growing number of subsidiaries.

Balance • The emphasis put on the various topics of the Report are proportionate to their relative importance, however more emphasis could be put on introducing the issue of responsible content providing due to international practices.

• The Report describes both the positive and negative effects of the operation of the Group.

Clarity

• The structure of the Report is transparent, understandable.

• The technical expressions, acronyms, professional words are mostly provided with appropriate explanations.

• The presentation of concrete goals in terms of sustainability performance and their realization is not structured enough.

Accuracy • The pieces of information published in the Report are altogether credible.

Timeliness

• The Report provides information on 2009; the time elapsed until the publishing of information makes no considerable harm to the timeliness of data.

Comparability

• The extensive use of GRI indicators makes the comparison of performance with competitors’ possible.

• The improvements of the Group’s sustainability performance, the reasons of the changes are well-traceable in most areas.

• The coverage of objectives and concrete goals, and their achievement is not structured enough (apart from one exception) which hinders the comparison of performance over time.

Reliability • The information published in the Report was well supported by the representatives of the relevant organizational units during the personal interviews.

• The information contained in the Report is in accordance with its original sources; they appear in the same way.

Robert Braun, Partner Patrik Perényi, Project manager

B&P Braun&Partners CSR Management B&P Braun&Partners CSR Management

Budapest, 16

th July, 2010

*Interviewees: Katalin Szomolányi, Department Head, Corporate Sustainability Department; Gyula Murár, Office Manager, Health and Safety Office; Orsolya Németh, Senior Business Intelligence Manager; Márton Peresztegi, Investor Relations Manager; Gábor Szőcs, HR Solutions Manage; Kristóf Horváth, Sustainability Strategy Manager, Corporate Sustainability Department; Balázs Molnár: Environmental Manager (STRABAG); Gábor Pukler, Department Head, Innovation and Business Development Department; and the colleague responsible for the Program ’Abigél’.



IMPRESSUM

Magyar Telekom Public Limited CompanyMagyarTelekomGroupCenter:H-1013Budapest,Krisztinakrt.55.Postaladdress:1541BudapestInternet:telekom.hu

Published by: ©MagyarTelekomPlc.CorporateSustainabilityDepartmentBudapest,2010

Officer responsible for the edition:ChristopherMattheisen,Chairman-CEO

Creative concept and design:©H-Artdirectors

Contact, further informationhttp://www.telekom.hu

Information relating to sustainability: http://www.telekom.hu/society_and_environment

CorporateSustainabilityDepartmentAddress:H-1013Budapest,Krisztinakrt.55.Mailingaddress:1541BudapestPhone:(1)4817744

e-mail: [email protected]

http://telekom.hu

http://www.telekom.hu

mailto:fenntarthatosag%40telekom.hu?subject=

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