The Cabinet yesterday postponed the signing of a privatization contract for 51% of Cesky Telecom by one month, i.e., to the end of November. This comes at the request of C-Tel, a 100%-owned subsidiary of Deutsche Bank that is to be used as the Cesky Telecom privatization vehicle. C-Tel requested the delay citing further discussions needed between the TDC/Deutsche Bank consortium and the financing banks. Finance Minister Bohuslav Sobotka said that the privatization price and conditions were not being disputed.
Separately, The Cabinet approved an amendment to the telecommunication law that will enable the leasing of local loops. The amendment is likely to become valid later than had been expected, though, i.e., the beginning of 2003. The sector regulator, the CTU, must still establish a tariff calculation on such leasing.
Also separately, Eurotel, 51% owned by Cesky Telecom, has scheduled a press conference for 10 a.m. CET to present its Q3/2002 results. We expect Q3 net income to be CZK 4.7 bil.
Jiri Soustruznik