The Czech Anti-Monopoly Office calls Cesky Telecom to introduce a new tariff package

The Czech Anti-Monopoly Office has called on Cesky Telecom to introduce at least one tariff package for customers that will not include so-called “free minutes.” The free minutes are seen as anti-competitive in the sense that they will make it more difficult for fixed-line competitors to compete for customer traffic on a call-by-call basis following market liberalization (to be effective as of July 2002). The CTU, the sector regulator, will deliver this recommendation to Cesky Telecom. The head of the AMO did not rule out administrative proceedings against Cesky Telecom unless the company introduces such a new tariff package by July 1. This pressure on the company is negative news for the stock, but we do not expect much response.

(Ondrej Datka)