According to local media the auction for mobilephone frequencies has driven the price up to at least twice the opening amount of CZK 7.4 bln. To enter the sector, the financial group PPF must defeat one of the incumbents, and local paper said the high price could be an obstacle. According to the paper TEFO2 will soon allow Tesco to begin acting as a full-fledged virtual operator, with flat-rate contracts and subsidized phones. Tesco will enter the same low end of the market that PPF has so far set its sights on. /could be slightly negative for the stock a we expected the price for mobile frequencies to reach roughly 1.5x the opening amount which could mean 3 – 3.5 bln. CZK capital expense for TEFO2.