The Hungarian telecommunication regulator announced yesterday that mobile service operators should cut their termination fees by 40-50% until January 2009. The path of the required cut in termination fees corresponds to the regulators earlier plans published in June 2006.
Our view: We see the news as slightly positive for MTEL, given its strong market position, though we believe the news won’t have a significant impact on today’s trading. We believe the market has already priced in the regulators plans, which were confirmed by this news. We have already factored a similar termination fee cut in our earnings forecasts.