The Czech Association of Public Telecom Network Operators (APTNO) said that it if its own cost data were applied to the new formula for setting domestic fixed-to-fixed interconnection prices (i.e., LRAIC, announced last week by the sector regulator), the peak interconnect price would fall from the current CZK 0.66/min to CZK 0.28/min (-58%), and the off-peak price would halve from the current CZK 0.33/min. Cesky Telecom, who will be the main loser once the interconnection prices are lowered, disagrees with the APTNO calculations. The regulator will not receive the relevant Cesky Telecom cost data needed toward determining new interconnection prices before mid-May, i.e., 2001 interconnection prices will be effective at least until then. The prospect of lowered interconnect prices (good for alternative operators such as Ceske radiokomunikace’s 50%-owned Contactel, bad for Cesky Telecom) is not new—we have had it in our Cesky Telecom model—and the amounts of money in question are small relative to other CT items. Hence, we do not expect any response by the two telecom stocks to the above.
(Ondrej Datka)