Today is the deadline for domestic mobile operators to submit their bids in an auction for three UMTS licenses (they have to do so between 9 and 11 a.m. CET). The opening price for a license in the auction was lowered on Monday of this week from CZK 6.7 bil. to CZK 3.5 bil. Given that the incumbent operators have valued the licenses at CZK 2.8 bil. or less in the past, it is not clear if any operator will submit a bid. The odds are slightly in favor of the operators submitting their bids, in our view. We do not expect any outside interest in the licenses, however. The Czech Telecommunications Office is scheduled to evaluate the bids on November 7, and to award the licenses on November 14.
(Ondrej Datka)