Eurotel, CT’s 100% owned mobile subsidiary, announced that it increased its internet speed 2.5 times using HSDPA technology, thus becoming the first operator offering service over this platform. The real maximum speed is about 1,024kbit/s. The service under the name “Internet Speed” will be available from Tuesday (April, 11). T-Mobile CR and Vodafone are planning to launch the HSDPA technology within a year. We regard Cesky Telecom and Eurotel’s focus on data and internet connection as positive given the continued erosion of voice revenues at both business segments, i.e. fixed lines and mobile network, nevertheless, we do not expect the news to have any impact on trading with Cesky’s shares.
Separately, according to CTK, Cesky Telecom (CT) paid a fine of CZK 205m (EUR 7.19m) or CZK 0.64 per share (EUR 0.02 per share) for abusing of its dominant market position. We believe that news will be neutral for today’s trading as CT creates provisions for such cases. We reiterate our Hold recommendation.