Eurotel, Cesky Telecom's 100% mobile subsidiary, reported that nearly 7,000 clients have signed up for the high-speed internet connection via CDMA within the first month of the service being launched. We view the number of users as encouraging, specifically in relation to the fact that Internet and data services are one of Eurotel's few growth areas given the high mobile market penetration (nearly 99% in 1H04) and increasing commoditization of the voice services. Note that T-Mobile CR (the second-largest mobile operator in the country) does not have a CDMA license (and strongly opposes Eurotel`s monopoly ownership of the license, which gives it a competitive advantage). Nevertheless, it plans to launch high speed internet access via EDGE technology by the end of the year.
Tomáš Gatěk