According to HN daily, TV Nova is said to have came to agreement with the Ministry of Interior yesterday. Petr Dvorak TV Nova’s CEO said that the agreement is being reviewed by lawyers. On the beginning of July government will discuss the proposal for TV broadcasting digitalization law. TV Nova and TV Prima are expected to receive two digital licenses each as compensation. In addition TV Nova and TV Prima would get one extra year of analogue broadcasting until 2011. The amendment also calls for keeping ad time on Czech TV and using the money for digitalization and film support. Our view: We do not know the final details of the agreement yet but the prospect of Czech public TV channels retaining rights to broadcast advertisements seems negative. The higher supply of advertising minutes would mean lower of TV ads prices increase for the next few years. It is still not clear for how long public TV would be allowed to air commercials. We would expect a negative impact of the news today.