TP faces record fine

"The issue is almost a done deal," Streżyńska said. "The paperwork to fine TP three percent of last year's revenues is ready. We are just waiting for the company's financial results for 2006."

Jacek Kalinowski, a TP spokesperson, said the company would appeal against the penalty. "The fine planned by UKE is baseless and goes against the telecoms law in the EU," he said.

For the period January to September of last year, TP's unconsolidated revenue dropped to zł.8.6 billion from zł.9.2 billion for the same period the year before. TP is expected to release its full-year results on March 1. However, UKE expects to see the results by early February, and if it doesn't receive them, Streżyńska said it could fine the company's chief executive, Maciej Witucki, up to three times his gross monthly salary.

"If we don't receive sales information on time, the CEO will be fined," she said.

Streżyńska has taken a tough line with TP since her appointment last year. The former communist-era monopoly - now controlled by France Telecom - is still by far the most dominant on Poland's market. UKE is conducting a dozen investigations into TP's market practices, and last year fined it zł.100 million for refusing to unbundle internet access from telephone services. (Reuters)