Cesky Telecom stated in a press release that the number of ADSL customers rose by 175% last year and reached 275k. ADSL leads in internet connections followed by cable and CDMA connection with 120k and 65k customers respectively. The record growth of customers was caused by a drop in prices and improved network. Households' ASDL internet penetration in Czech Republic rose 118% y/y, the fastest among 12 monitored European countries. We see this news as slightly positive, as internet connection and value-added services represents one of the few fixed-line growth areas, and should help slow the decline in the fixed business and growth deceleration in the mobile business. However, given the share price appreciation over the last few months and the rich valuations, we are recommending taking profits in Cesky Tel.