The Czech Telecommunications Office will reportedly propose that three UMTS licenses be offered to the three existing operators for a fixed fee with a fourth license to be sold through an auction. This is basically a version of a proposal that has been on the table already, and does not come as a surprise. We see it as favorable for the three existing cellular operators, though the ultimate judgement should be made only after the fixed fee they will pay is determined by an adviser. The licenses should be awarded by September 2001. The two stocks with exposure to cellular telephony are Cesky Telecom (51% stake in EuroTel) and Ceske radiokomunikace (51% stake in RadioMobil).