According to the Czech Telecommunication Office (CTO) decision TEF O2 CR has to pay to alternative operator Tiscali CZK 43m (EUR 1.5m, less than EUR 0.01 per share) for unpaid connection fees and dial-up internet from 2005. Previously CTO ordered TEF O2 CR additional payment of CZK 23m to Tiscali for the same offence and court approved it in June. Tiscali stated that in 2006 TEF O2 CR again does not pay inter-connection fees in the amount contracted and its payables are about CZK 20m.
Our view:
Despite the fact that TEF O2 CR paid the fine already, company plans to appeal decision at the court. With the regard to amount we believe that it should be neutral for today’s trading with TEF O2 CR.