The Prague Business Journal also quotes Deputy Transport and Communications Minister Jiri Domansky as saying that the Czech Telecommunications Office (the sector regulator) and an inter-ministry committee have prepared a compromise proposal regarding UMTS licenses and will submit it to Cabinet. This corresponds to other reports last week that the relevant authorities may offer three UMTS licenses to the three incumbent cellular operators at lower prices than were sought in August (CZK 3.3 bil. per license vs. CZK 6.7 bil. per license), but conditional on payment being made soon, and not over a period of many years (the government needs financing for this year’s budget). Representatives of both Cesky Telecom’s Eurotel and Ceske radiokomunikace’s RadioMobil were quoted as welcoming this shift in the authorities’ position. A lower price for UMTS licenses would be positive for both telecom stocks, but given that the above report basically confirms last week’s information, we find it neutral.
According to other reports last week, Cabinet could discuss the sale of UMTS licenses the second week in September.
(Ondrej Datka)