Czech Telecommunication Office (CTO) published on January 3, 2007 a technical plan for a switch from analogue to digital TV broadcasting in the country. According to this plan, analogue TV broadcasting should be discontinued on 10.10.2010, in line with previous announcements.
Related subjects have one month from the date of issue to comment / object the mentioned plan. CTO has another one month to carry out a public discussion and implement changes.
Our view: CME's TV Nova broadcasting license expires only in 2017. The station management indicated that it would criticize government plan to introduce obligatory switch to digital broadcasting before that date. In exchange for its consent, TV Nova might ask for a compensation in the form of additional thematic channel licenses, if the government would stick with the plan. We do not expect any major price impact of the news. We reiterate our Buy rating for the stock.