The anti-monopoly office banned TEF’s contract with the state on data transfer worth CZK610m was the office is investigating whether the tender for the contract was in order.
Our view:
We do not see the news to have significant impact on TEF CR O2’s financials as the deals worth CZK610m would represent only 1% of fixed line revenues. Also the ban is an preventative complain from the regulator and may delay the process but we believe that deal should be approved. In addition, no EU regulation states that an incumbent cannot bid for public projects.