Privatization of Cesky Telecom underway.(CZECH REPUBLIC)(Brief Article)

European Telecom, April, 2005

The government of the Czech Republic had invited bids to privatize the telecom company Cesky Telecom. The bidding deadline for the 51.1 percent stake ended on March 30, 2005.

The companies who have bid to acquire the controlling stake in Cesky include Belgacom, France Telecom, Swisscom and Telefonica. Cesky Telecom is the last fixed-line, government-owned monopoly in central Europe. The value of the stake is estimated to be $3 billion. Cesky Telecom has reported losses and has undertaken a number of measures to reduce expenses and increase profitability. It has also faced increasing competition from the alliance of GTS and Aliatel, called GTS Novera.