Cesky Telecom: ADSL subscribers at 375 thousand

Cesky Telecom (CT) has 375k ADSL customers. The number of the fast internet connection ADSL increased by quarter in the last four months. CT now covers more than 90% of the fixed lines in the Czech Republic with ADSL which means about 97% of all customers. In addition CT also lowered the wholesale prices of ADSL by CZK 22 (EUR 0.78). We believe that news is positive as the broadband internet is a key service for CT to stop long-term decline in the fixed line business. We reiterate our Buy recommendation on Cesky Telecom.