Telefonica To Sell Controlling Stake In Czech Subsidiary
News: Spain-based Telefonica has confirmed plans to sell a controlling stake in its Czech subsidiary as the company continues to reduce its outstanding debt, reports Cellular-News. The company indicated it is in talks with Czech-Republic-based PPF Group without disclosing any further information. Telefonica owns a 69% stake in the Czech Republic subsidiary, which has a current market value of US$3.9bn.
BMI View: The Czech Republic telecoms market is undergoing a period of change with the arrival of MVNOs and t he regulator's efforts to attract a fourth operator into the market. These pro-competition measures will add to a market that already contains a number of major international players such as Telefónica O2, T-Mobile and Vodafone in mobile, and Telefónica and UPC in wireline. The market has been under many of the same pressures as markets throughout the region with market saturation, regulatory factors such as cuts to mobile termination rates and the impact of the eurozone crisis on macroeconomic performance acting as drags on performance.