CEO of Cesky Tel revealed yesterday that there should be no change in dividend policy this year as the business in fixed line is not stable yet. Any rumors about additional dividend have thus been buried. Fixed line business should stop its declining trend in 2007 as strong demand for internet and other services like IPTV, music downloads is expected to increase. We see this news as slightly negative from the point of view that some market players were expecting higher dividends. We reiterate our Sell recommendation for Cesky Tel with fair value CZK 510.