The crowded house
Cesky Telecom (CT) is expected to begin eyeing up opportunities north of its border after 51 percent of the state-owned company is sold off later this year, giving it a capitalization of $6 (zł.1.4) billion.
It is thought that the concern will be sold to one of four western European telecoms, including France Telecom and Swisscom, who are participating in the tender.
After privatization the Czechs intend to expand in the region, because local market penetration in GSM exceeds 100 percent in terms of the number of SIM cards per capita, and land lines are increasing at a slow rate.
"Almost 40 million people and a relatively low saturation of their market is an ideal place for further development," Cesky's CFO Juraj Sedivy told Reuters, referring to Poland.
Penetration in Poland's mobile market at just 60 percent consequently appears to offer considerable opportunity. But Poland's big three GSM companies are already foreign owned, and those investors are likely to increase their stakes rather than sell them.
Cesky could try to enter as a fourth operator in the forthcoming tender, however, says Krzysztof Kaczmarczyk from Deutsche Bank Securities: "Given the strong position of existing operators it would be a very risky game."
Kaczmarczyk compares Cesky's position with that of Netia, which announced its intention to spend big in Poland several years ago. Netia has found it near impossible to pick up anything except a few small local operators of minor significance.
"All telecoms have too much cash, especially in the west their debt levels reached the minimal accepted levels," claims Kaczmarczyk.
It is thought that the concern will be sold to one of four western European telecoms, including France Telecom and Swisscom, who are participating in the tender.
After privatization the Czechs intend to expand in the region, because local market penetration in GSM exceeds 100 percent in terms of the number of SIM cards per capita, and land lines are increasing at a slow rate.
"Almost 40 million people and a relatively low saturation of their market is an ideal place for further development," Cesky's CFO Juraj Sedivy told Reuters, referring to Poland.
Penetration in Poland's mobile market at just 60 percent consequently appears to offer considerable opportunity. But Poland's big three GSM companies are already foreign owned, and those investors are likely to increase their stakes rather than sell them.
Cesky could try to enter as a fourth operator in the forthcoming tender, however, says Krzysztof Kaczmarczyk from Deutsche Bank Securities: "Given the strong position of existing operators it would be a very risky game."
Kaczmarczyk compares Cesky's position with that of Netia, which announced its intention to spend big in Poland several years ago. Netia has found it near impossible to pick up anything except a few small local operators of minor significance.
"All telecoms have too much cash, especially in the west their debt levels reached the minimal accepted levels," claims Kaczmarczyk.
