Telefonica announced that TEF O2 Slovakia serves more than 400,000 customers. The Slovak Operation started in February 2007 and TEF O2 Slovakia registered about 600,000 possible customers. Now company offers pre-paid service which should be followed by extended portfolio. The Slovak market has penetration almost 100%.
Our view:
Pace of growth within customer base is high and expected. Company guidance for 2007 is conservative and assumes to gain 5% market share. We see the news as neutral.