Cesky Telecom’s Eurotel and Ceske radio’s RadioMobil have again spoken against a major possible reduction in interconnect fixed-to-mobile prices (as reported in the Hospodarske noviny newspaper). A decision on the price by the regulator is due by end of November; a relatively large reduction (which we believe is likely) would benefit Cesky Telecom at the expense of the two mobile operators. Hospodarske noviny also suggests that a large interconnect price reduction could undermine the operators’ interest in acquiring UMTS licenses. Also in today’s Hospodarske noviny, the transport minister seeks to justify the price the government has been asking for the licenses (CZK 6.7 bil. per UMTS license). The Cabinet will likely discuss the forthcoming UMTS auction, including the opening price, on Wednesday. Separately, the CEO of Eurotel reiterated on Monday the company’s view that a domestic UMTS license is worth no more than CZK 2.5 bil. All of this is essentially lobbying ahead of the interconnect and UMTS decisions, and does not represent new information.
(Ondrej Datka)