The three incumbent mobile operators and two new players applied for LTE frequencies. Tasciane, a subsidiary of Karel Komárek’s KKCG, is one of the five applicants, as is Revolution Mobile, formerly PPF Mobile, now owned by Budník. PPF itself will not bid. Budnik worked for PPF Mobile when the company was preparing to enter the market, but he said Revolution Mobile no longer has any connection to PPF. The withdrawal of PPF revived speculation that it is interested in buying one of the incumbents. TEFO2 also filed a petition with Prague Municipal Court on Fri. for a preliminary injunction against the auction for mobile-phone frequencies. O2 said it fears that the auction will end before its broader complaint against the auction is decided by the court. /Overall NEUTRAL in our view. More bidders for LTE spectrum may drive up costs to acquire 4G license and bring more competition to the mobile market. On the other hand, there may be a suspicion that TEFO2 and T-Mobile may cooperate in the auction as both companies recently entered into agreement to share their 3G networks (still subject to CTU’s approval). There also may be speculations TEFO2 could be taken over by PPF group. We reiterate our REDUCE recommendation for TEFO2 stock and TP at CZK 260