TPSA removed the limit on the data downloads on its Neostrada broadband internet access service, and increased transfer speed at one of the service’s cheaper options, while leaving unchanged Neostrada subscription fees.
Our view: TPSA response to increasing numbers of clients tempted by cheaper offerings by Netia and GTS suggests that the incumbent priority is stopping the price erosion. It remains to be seen how successful this marketing strategy would be, but the past evidence suggests that the company marketing choices were quite correct. We view the news as neutral. We reiterate our Hold rating for the stock.