Alcatel Kft is to introduce the first ADSL service in Hungary which does not require subscription to a land line according to Napi Gazdasag.
Our view:
We would expect short-term negative market reaction to the news as unbundled service offerings will clearly stimulate competition from new entrants. However, we continue to believe in the superior economic viability of bundled services, which incumbents are better-positioned to offer. We maintain our Buy rating on MTEL based on its ability to compete both in bundled and unbundled products, and its attractive valuation.