Cesky Telecom denied last night’s TV Nova report of a massive cancellation of fixed-line service by subscribers, ahead of a significant hike in the monthly subscriber fee due to become effective in February. Some subscriber cancellations are expected, but a massive outflow of fixed-line customers, should it occur, would have negative implications for the company and the stock (the hike in the monthly fee itself is in our view positive for Cesky Telecom’s performance in 2002). At this stage, however, it is too early to tell the effect of the impending hike on the subscriber base, hence this is neutral news.
(Ondrej Datka)