Cesky Telecom has secured 8 contracts for Internet Protocol TV (IPTV). The start of commercial broadcasting with 30 TV channels is scheduled for the end of June ’06. IPTV will be provided for flat fee, which has not been specified yet. Additional services like video-on-demand and premium channels will be charged separately. Later on, Cesky Tel plans to cooperate with its mobile arm Eurotel to provide mobile IPTV. Cesky Tel continues to widen its value added services (VAS) to substitute fixed-line revenue declines. We see this news as neutral and reiterate our Sell recommendation.