The Czech telecommunications regulator called for bids in a rerun auction for mobile frequencies that may allow a new market entrant and threaten incumbent operators who have vowed to dispute the process. The regulator, known as CTU, said the auction, which includes frequencies that will enable providers to offer new 4G mobile services, wants to raise at least 8.72 bln. CZK. CTU head Jaromir Novak said raising revenue will not be the main goal of the auction. Rather, the regulator wants to allow new operators into the market and to improve services. Some of the incumbents have said they consider the rules unfair. Potential bidders should submit applications by Sept. 30 and the actual bidding via electronic tender should start in mid-November, CTU said. / We expect the new auction may attract more bidders than just PPF with the new auction terms. A potential 4th operator could contribute to further decrease of mobile voice and sms revenues of Telefónica CR in our view. Therefore, we increase the discount rate in our model and lower our target price to 260 CZK from 309 CZK with REDUCE recommendation.