CTU reduced interconnection fees to the fixed-line network by approx. 20%

The regulator, CTU, yesterday reduced interconnection fees to the fixed-line network by approx. 20% (effective January 8).Source: CTU The fee reduction was likely, but it came sooner than we expected, which is clearly negative (most of the payments to other operators are F2M and therefore unaffected by this regulatory decision). CT might reportedly appeal against the decision.

The overall dynamic of the revenues from other operators in 2004 and onward will also be driven by (i) the growth in transit traffic from abroad (terminated via the CT network); (ii) the domestic volumes of transit traffic (e.g. Mobile operators channeling traffic to international destinations via CT's network); and (iii) carrier pre-selection. Based on the new information we would currently expect either stagnation or a small decline in this line of revenues in 2004 (as opposed to the previously assumed 10% increase).

Jitka Oppitzová