According to Slovak HN daily the decision concerning 3rd Slovak mobile operator has been postponed and commission should announce the winner tomorrow, 3 August. TEF O2 CR has reportedly offered the lowest bid of only SKK 150m, while Mobilkom Austria SKK 250m and B Four SKK 400m.
Our view:
Although TEF O2 CR offered the lowest amount for the licence, it is not a driving factor to obtain the licence as it has only 5% weight in the decision process. Up to 50% weight is assigned to the criteria of increasing the competition on the market, 20 % weight is assigned to time factor of building the network, 15% to experience with GSM and UMTS services and additional 10% to portfolio of provided services. Thus we see the news as neutral at the moment and we still think that TEF O2 CR has high chances to be the winner, which would mean that higher dividends in 2007 are unlikely.