Yesterday TPSA was fined PLN 100m by telecom market regulator for forcing its clients to purchase fixed-line services, should they want to receive ADSL service. According to UKE head Anna Strezynska, TPSA's offer is in violation of telecom law, which states that an access to one service cannot be dependent on purchasing another. The fine is not the only one TPSA may have to deal with. TPSA may also face a fine of PLN 100 mln for delays in implementing Wholesale Line Rental (WLR) services. TP SA said it would appeal against the decision, which would stop its execution.
Our view: We believe that the news on the fine is fully priced in, since the regulator decision has been flagged many times over the past few weeks. We reiterate our Buy rating for TPSA.