Today, the telecoms regulator might today publish its decision on fixed-to-mobile interconnect prices. According to a Wednesday report by the MFDnes newspaper, the regulator will likely decide that the prices be reduced from CZK 6.50 to CZK 3.40-4.30 per minute, which is closer to the level Cesky Telecom has been advocating (around CZK 3/minute) than what the two leading mobile operators - Eurotel and RadioMobil - wanted. In spite of that, fixed-line operators, including Cesky Telecom, yesterday demanded a larger cut, to below CZK 3/minute. We believe that, by now, the regulator’s decision is reflected in the stock prices, and only a decision other than that reported by MFDnes on Wednesday could have an impact on the telecom stocks.
Next week, on Monday, the telecoms regulator should disclose the opening price in the UMTS license auction. The operators’ bids are due on Friday, November 30.
(Ondrej Datka)