As expected, Cesky Telecom introduced new tariffs structure, which increases the monthly subscription charge by up to 25% and at the same time reduces calling rates, in particular unifies long-distance rate and local calls and decreases charges for calls to mobile networks. In addition, the company introduced a flat rate tariff for unlimited calls. The new charges apply since May. The structure of Cesky’s tariffs now better reflects (i) costs to maintain a fixed line by increasing the monthly fix fee, hence Cesky does not have to cross-finance it anymore and (ii) Cesky’s attempt to stimulate voice traffic at it fixed lines while securing a monthly fee in order to stop continued erosion of fixed line revenues. The result of the new structure will probably show its result in the 3Q in full and therefore we do not expect any significant market reaction to it. We reiterate our Hold recommendation.