Český Telecom - Eurotel would launch data services based on CDMA technology in May

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Investiční bankovnictví KB

      Eurotel announced that It would launch data services based on CDMA technology in May allowing high-speed internet access. Technology should capitalize on existing NMT network and its frequency band for which Eurotel holds license until 2011. Investment into CDMA should reach several hundred million crowns. Competitor T-Mobile also expressed an interest in CDMA license and currently negotiates with the Czech Telecommunications Office.

       We consider the news positive for Cesky Telecom. CDMA technology allows high-speed internet access through mobile phone. Eurotel is market leader providing flat-rate internet access through GPRS and offer of qualitatively better CDMA services should increase the company’s market share. Given the fact CDMA offers transfer speeds up to 150kbit/s (which is approximately 3.5times lower compared to ADSL), we expect the services to be complementary. In our opinion, CDMA services would cannibalize GPRS and ISDN based services.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.