Tele2 said that in December it would have sent TPSA filings from 90k incumbent operator subscribers wishing to switch from TPSA to Tele2, following the introduction of WRL in Poland. The transfers would become effective in early January 2007.
Our view: We view the news as negative, as the number of clients wishing to leave TPSA in December, the first month when it is possible, seems high. However, it is not necessarily indicative for future months and we expect that the outflow of clients would level off in upcoming months as a result of loyalty enhancing marketing measures. We reiterate our Hold rating for the stock.