The Ministry of Transport and Communications will likely propose to Cabinet—in a document that is currently being drafted—that 3 UMTS licenses be awarded directly to the three existing GSM operators and for a fixed fee. A fourth license could be awarded to a newcomer (probably via a tender). The benefit of the draft proposal to the three incumbent operators is that they would be sure to acquire a UMTS license. The ministries of transport and communications and finance seem to agree that the state could raise CZK 20 bil. from the sale of the 4 UMTS licenses, at CZK 5 bil. each, and this figure has been included in 2001 budget projections (these figures have been public for some time and do not represent new information). The Ministry of Finance may still push for a standard auction for all four licenses, however. Given that the outcome of the Cabinet decision (scheduled for October) is far from certain, we do not expect any UMTS-related volatility in the two telecom stocks in the coming days. The two listed stocks with exposure to of existing GSM operators are Cesky Telecom (51% stake in EuroTel) and Ceske Radiokomunikace (51% stake in RadioMobil, which will be diluted to 39% in 2001).