The acquisition of 2% of its own shares (share buy-back) has been completed on Tuesday Nov 27 for a total purchase price of CZK 2,481 bln. The Board of Directors has not decided on continuation of the company’s share buy-back yet. /The program has ended according to the original plan, a bit earlier than we expected as TEFO accelerated the program lately. We think that given the ongoing LTE spectrum auction, that will increase TEFO2’s capital expenses next year, and continuing pressure on the company’s free cash-flow, will not resume the buyback program soon. could continue to be under selling pressure in coming weeks/.
Bidding for mobile-phone frequencies was extended beyond yesterday’s expected close, because bids were still coming in. /It could be Slightly Negative as the competitive bidding suggests higher final prices for acquired frequencies. Bidding could get more competitive especially in 800 MHz spectrum, which is necessary for building the 4G network to allow high-speed data for mobile phones. We expect the LTE license could cost up to 3.0 – 3.5 bln. CZK next year. /