CTU, the sector regulator, has proposed that the deadline for issuing Czech UMTS licenses be postponed by two months, from September till the end of November. The current tender, launched in August, has been delayed as the operators are willing to accept the asked fixed price of CZK 6.7 bil. per license only if other conditions (rollout, payment, etc.) are significantly relaxed. Only the Cabinet can change these conditions. Also, there have been recent reports that the government may accept a lower fixed price (CZK 3.3 bil.) in exchange for the immediate receipt of license fees, and that the first round may be re-run. Postponing the deadline, in our view, would provide room for further negotiations and Cabinet discussion. Neutral news for the telecom stocks.
(Ondrej Datka)