TPSA has reached an initial agreement with Tele2 on implementing UKE directive on wholesale subscription sales (WLR), according to Tele2 representative. The service would be commercially launched by January 2007. Tele2 has added, that it expects similar agreement with TPSA on bitstream access to be signed within next few weeks. In response, UKE said it would most likely cancel the PLN 366m fine on TPSA and delay deadline for introducing WRL.
Our view: We view the news as a sign of gradual normalization of relations between TPSA and the regulator. UKE has given TPSA some breathing space by delaying the deadline for implementation of WRL. We view the news as positive. We reiterate our Buy rating for TPSA.