Cesky Telecom will be able to use an increase in the price index of the regulated basket of its telecommunication services

The Czech Telecommunications Office, the sector’s regulator, announced yesterday that Cesky Telecom will be able to use an increase of up to 4% in the price index of the regulated basket of its telecommunication services in 2001. The basket represents a cross-section of regulated services, and within the limits of the 4% increase of the overall basket index, Cesky Telecom has some degree of freedom to change individual service prices. Among the changes we expect are a substantial increase in the monthly subscription fee and reductions in international and domestic long-distance tariffs. In our view, the overall 4% increase is a reasonable one for Cesky Telecom (in line with inflation), given that last year the regulatory limit was only +0.9%.

(Ondřej Daťka)