EU has criticized UKE, the telecom watchdog, for trying to impose its regulations on internet access market. UKE said it would appeal from the criticism (‘UE is using old fashioned definitions of telecom services markets’) and would maintain its fine on TPSA for setting too high a fixed subscription fee for using internet services.
Our view: We view the news as slightly positive, as EU criticism of UKE ruling strengthens TPSA legal case against fines in the court. Nevertheless, UKE regulatory decisions remain valid, even after EU criticism. We reiterate our Hold rating for TPSA.