Polsat Cyfrowy, digital platform of Polsat, one of the leading commercial TV stations in Poland, announced plans to launch GSM and 3G services by the turn of the year 2006/07, acting as MVNO in cooperation with PTC Era, the biggest mobile operator in Poland owned by Elektrim and Deutsche Telecom. Polsat has already signed a roaming agreement with PTC yesterday, on the same day, as Netia’s P4 signed a similar agreement with Polkomtel. Approximately 50 other companies have announced plans to become MVNO and PTC Era said it plans more contracts on opening its GSM / 3G infrastructure to MVNO’s to be signed soon.
We remain sceptical on P4 prospects, especially given almost equal starting point with Polsat Cyfrowy, prospect for increased rivalry and already high market saturation. We expect negative impact of the news to the trading on Netia today and we reiterate our Sell rating for the stock.