According to CTK, TEF O2 CR will launch commercial use of Slovak network in the first quarter next year. In the first year, the company will focus on expansion of its own network as well as mobile services as such. Pre-paid contracts will play the leading role at the beginning, shortly followed other services. The CEO of the Slovak operations Mr. Sedivy sees price decline as possible and manageable as market has so far been duopoly with negative implications on price level.
Our view:
We see the decision on delaying the launch of services after New Year negatively as pre-Christmas period is crucial in gaining new customers who normally signs two-year contracts. We see the price competition as the main way for TEF O2 Slovakia to gain customers as incumbent operators provide wide range of services.