TP CEO will cut spending unless the law is amended

opublikowano: 18-02-2008, 12:21

Warsaw (Puls Biznesu) – Maciej Witucki, TP  CEO, wants to win the war with supervising authorities. Otherwise, he won’t invest more than EUR 500m within EU funds.

TP has for many months now been lobbying for a provision promoting investments in the telecommunication law.

“A provision stating that the regulator promotes implementation of the state’s infrastructural politics, which aim at building a certain number of broadband internet lines in Poland”, Maciej Witucki, TP CEO said.

TP and the regulator: Office of Electronic Communications (UKE), have been fighting for two years since Anna Strezynska was appointed UKE CEO. She keeps liberalizing the market. TP CEO estimates that UKE’s activities shrink sales of the former monopoly by PLN 1bn (PLN 279m) annually.

The amendment of the telecommunication law may be ready in the first quarter. The Ministry of the Infrastructure may support TP here. Anna Strezynska warned several days ago that she may resign. Maciej Witucki on the other hand warns that unless the law is changed, TP will cut investments.

“I have already cut 2008 budget and I will do it again if needed. Instead of fibers, we will build CDMA or satellite television”, TP CEO said.

This year, TP will invest 14-16 percent of its sales, down from 20 percent last year.

TP rivals stress that even if the law protects investments, there is no guarantee that they grow, on the contrary. The countries with most liberal markets have the highest investments indices.

Whatever the law, TP will invest with local governments, it has already signed 11 contracts.

“We have offered to invest EUR 500m”, Maciej Witucki said.

Local authorities will pay the same amount and build expensive fiber network while TP will install final equipment. TP may be the main player in contracts ordered by local governments. There is EUR 4.4bn to be spent.

(PLN 1 = EUR 0.279)

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