According to Czech Telecommunication Office (CTO), the industry regulator, Cesky Telecom has to pay CZK 23m (CZK 0.07/share) to Tiscali, alternative operator, for unpaid dial-up connections fees. Cesky Telecom has been paying lower fees set by CTO, while contracted fees with alternative operators were higher. Cesky Telecom will appeal against the decision at the court.
Separately, as expected mobile operators announced low customers’ interest in mobile number portability. During the first three weeks only 7,500 customers changed the operator, which is insignificant number. As expected, according to HN daily Vodafone benefited the most with a net gain of 3,000 customers, Eurotel’s net lost is 1,200 customers (owned by Cesky Telecom) and T Mobile’s net lost 1,800. We see these news as neutral for today’s trading with Cesky Telecom and reiterate our Sell recommendation.