According to a Prague Business Journal report, RadioMobil, a cellular operator (39% owned by Ceske radiokomunikace), warned that it would stop subsidizing mobile handsets if the sector regulator approves a large reduction in the fixed-to-mobile interconnection fee as a result of excluding the cost of cellular-phone subsidies from the fee-calculating formula. Another cellular operator, Eurotel (51% owned by Cesky Telecom), also wants the regulator to avoid a dramatic one-off reduction in the fee. Cesky Telecom, which has been seeking a reduction in the fee but was unable to reach an agreement with the two cellular operators, stands to benefit should the regulator cut the fixed-to-mobile interconnect fees (which we expect), although its 51% stake in Eurotel (which is on the other side of the dispute) would somewhat dilute this positive effect on consolidated Cesky Telecom performance. Conversely, RadioMobil and Ceske radiokomunikace, RadioMobil’s listed parent, would lose out. The regulator is to rule on the interconnect fees in the coming weeks.
(Ondrej Datka)