Annual Report 2021

Q&A with Piotr Jaworski, Management Board Member in charge of Network and Technology

Q: Why it is necessary for you to renew your radio access network?

Orange Polska has always positioned itself as the numberone network in Poland. Not only because we have the biggest infrastructure in Poland but because we prioritise the high quality of the network. Technologies evolve and customer needs change, so in order to maintain this high quality that our customers are used to, we have to invest.

This year we are starting a major modernisation of our radio access network that will not only comprehensively prepare us for 5G but also for the gradual phase-out of older technologies in the future. The project is designed to take place over the next few years. Its timing will be synchronised with rollout of 5G network on the C-band spectrum that we hope will be distributed very soon.

I will just mention a few of the most important initiatives within this project. Some hardware equipment that we are using in our RAN was installed over a decade ago when we were implementing co-sharing of the network with T-Mobile. This needs replacement as vendors’ support for this equipment is coming to an end. The 2100 MHz spectrum will be able to serve 5G in DSS mode (dynamic spectrum sharing). We will also significantly increase LTE capacity of 1800 MHz and 2100 MHz spectrum on existing sites to better cope with the data explosion and to minimise the need to build new sites in the future. All new equipment installed will be much more energy effective, which will contribute to meeting our environmental goals.

As you have seen in the past, we are able to monetise higher data consumption through ARPO growth, so I am confident that these investments will create long-term value.

As we were presenting in our strategy meeting, Orange Polska's total eCapex range will not change versus the previous few years. Decreasing investments in the fibre rollout will be replaced by higher capex related to the mobile network, which was very low in the past few years.

Q: What is your road to phasing out older technologies?

Replacing older obsolete technologies with next generation mobile and fixed networks is a normal course of events to improve efficiency and curb costs of legacy systems. We are making room for the future.

In our strategy we have declared that we will switch off 3G technology by 2025. Around 96% of data traffic is accounted for by 4G; 3G accounts for only 3%. Voice traffic on 3G is also decreasing, migrating gradually to VoLTE. The radio frequencies currently used for 3G will be used to improve the overall capacity and coverage of 4G and 5G networks both in urban and rural areas. Mobile customers will benefit from upgraded experience with higher voice quality over VoLTE, higher throughput and lower latency for data and improved security.

Within the period of the .Grow strategy we also plan to significantly advance replacement of copper with fibre. We will focus on network capacity adaptation to services occupancy, simultaneous with extended migration of services to FTTH or LTE/5G, where copper parameters are limited.

Doing all that we will put the needs of our customers first. We will inform them in advance and provide technical and customer care support to make sure the migration path is as seamless as possible.

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