Cesky Telecom (CT) released its decision to invest another CZK 150m into the development of broadband connections in Czech Republic and thus made higher quality and faster connections available even to more remote areas. CZK 150m investment should be specifically designated for the construction of new interconnecting components in the network. CT plans to reach 98% penetration of broadband internet. We see this CT’s effort positively as it could help it to halt the decline in fixed line business, which is a long-term problem. CT’s ADSL services have been extremely popular lately and the number of its users reached 330,000 in early March and has been growing steadily since then. We see this news as positive and reiterate our Hold recommendation for Cesky Telecom.