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Price cut might not do the job for NASK

NASK is still likely to lose customers to rivals and a price cut, coming just two months after it hiked fees, could cause confusion and makes long-term planning difficult for clients.
To avoid any more roller-coaster rides with NASK - which sells a gateway to the internet for internet providers serving retail customers - Polska OnLine is considering going with rival service Polpak, said Slawomir Kulagowski, CEO with Polska OnLine.
Telekomunikacja Polska SA (TPSA) started its Polpak network this spring.
"Internet providers can switch from NASK to Polpak, because they offer very reasonable and stable prices," Kulagowski said. Still, a price cut is a price cut and some NASK users were pleased.
"We are very pleased by this drop of prices," said Henryk Kaminski, a director of Sprint. "It's good for us, for the Internet development in Poland, and, what is most important, for our clients."
NASK said better traffic control of internet usage and a new satellite link are reasons for the price cut. The operator said in April that it was raising prices to lower demand that was overwhelming its network.
But the supply problems that precipitated the price hike no longer exist. NASK's new satellite link with America, which started at the end of May, has enough capacity to bear the load of increased traffic, said Robert Paruzel, NASK's promotion specialist.

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