Eurotel, 100% mobile subsidiary of Cesky Telecom (CT) , Mobile Number Portability (MNP) introduction. MNP is set to accelerate competition in the already saturated Czech mobile market, and we expect Vodafone to be a beneficiary of MNP as it was the last market entrant and has repeatedly stated that it intends to raise its market share from the current 18%.
Separately, the Czech Telecommunication Office (CTO) has prolonged the tender to operate pay-phones until 10 February. Cesky Telecom is currently the only bidder. Payphones are part of the public universal services and therefore the CTO must hold a tender for it. The number of payphones has stabilized at 26,000, while their usage has been declining.
Neither issue should have material impact on today's trading on CT shares, which are currently more sensitive to comments and speculations regarding future dividends. we reiterate our SELL recommendation on CT.