EU agreed on lower fees for roaming yesterday. The agreement should force telco operators to decrease prices for roaming during summer. The agreement still needs to be approved by EU parliament and member states. Maximum price for outgoing call should be EUR 0.49 per minute and should gradually decrease by EUR 0.03 in each of next 2 years. Fees for incoming calls should be capped by EUR 0.24 per minute and should decrease to EUR 0.22 and EUR 0.19 per minute in 2008 and 2009 respectively. Our view: Although the threat of roaming regulation has been around for some time, we see this news overall negative for telco operators in the EU. The exact roaming figures for TEF O2 CR are not available, however Czech Republic in total imports some 1% of EU roaming traffic, therefore we see it as potential loser from proposed roaming cuts.