While the report is unconfirmed and may not be correct, it could reopen the subject of OTE s relationship with its suppliers, highlighting the disadvantages of its relationship with the State. Given also the apparent delays in finding a strategic partner, OTE s share price could weaken further. In other news, OTE decided to open its local loop to other competitors, conforming to market liberalisation requirements. It will cut back on overtime and other extra pay, and will give staff bonuses only if financial targets are met. EBT reached Grd29bn slightly above our expectations.
Cosmote growth remains impressive both operationally and financially.
It is the leader in contract customers and we estimate it will overtake Panafon within 2001. So far, it has wrong footed its competitors several times in commercial policies. Cosmote is among our top-picks. The two banks and Cosmote s portal CosmoOne are in discussion over the joint development of secure electronic payment systems. The venture will duplicate a jv between DOL Digital and EFG Eurobank, but is unlikely to affect the profitability of any of those involved in the medium term.