TEO LT, AB - Notification on material event

Teo Group intends to provide instant payment services in Lithuania

On 5 July 2016, TEO LT, AB (hereinafter – “Teo” or “the Company”) joined the
Memorandum of Understanding on the enhancement of the functionality of the Bank
of Lithuania retail payment system (hereinafter – “Memorandum of
Understanding”), prepared by the Bank of Lithuania and expressed its agreement
to follow the provisions of this Memorandum of Understanding. 

Memorandum of Understanding provides that aiming to improve the quality of
payment services by shortening settlement time and to reduce the price of
payment services to customers as well as ensuring efficient operation of the
payment system, the Bank of Lithuania develops retail payment system SEPA-MMS,
managed by the Bank of Lithuania, by enhancing its functionality with a new
function – the possibility to execute payments among the accounts of the
customers of the participants [payment service providers] (hereinafter –
“Functionality of payments in customers’ accounts”). 

By joining this Memorandum of Understanding, Teo Group expresses its intention
to collaborate in creating and implementing the Functionality of payments in
customers’ accounts. The Memorandum provides that the Bank of Lithuania will
seek to complete all intended activities for creation of Functionality of
payments in customers’ accounts as soon as possible but not later than 1
November 2017. 

“Teo and Omnitel supports the initiative of the Bank of Lithuania to develop
the market of retail payment services – it also creates an opportunity for
organic development of telecommunications business. We believe that
functionality of instant payments would perfectly complement our state-of-art
communication and IT services. We are ready to cooperate with other market
participants and to contribute our knowledge and experience in area of
technologies in order to set up a convenient retail payment ecosystem for
Lithuanian customers,” – says Mantas Goštautas, Head of Business Development at
Teo and Omnitel. 




         Giedrė Kaminskaitė-Salters,
         Head of Legal,
         tel. +370 5 236 7715