Netia shareholders hit by the costs of free internet

According to an analysis by the Electronic Communications Office (UKE), Netia's promotional offer may be as much as 35% cheaper than the services offered by Telekomunikacja Polska. New customers who sign a 3-year contract with the company by the end of July will have free Internet access for the first year. Netia shareholders may not be too happy with the promotion as it means the company will provide its services below cost and will lose several zlotys a month for each customer. "This promotion will not bring any positive outcome for Netia, neither in terms of its financial result nor in marketing. It is costly and forces Netia to provide the services below costs," commented Micha³ Marczak, an analyst with DI BRE Bank. However, Netia is optimistic about its strategy. "The offer is profitable as we want to attract the customers for a longer time," said Netia's spokesperson Jolanta Ciesielska. In the last two weeks the company attracted 1,500 new customers.(Puls Biznesu, pp. 1, 7) E.B.