Regulating the regulator

People who know CEO Gabriel Berdár of Český Telecom say he's sincere about wanting to increase Telecom's pre-privatization value. If there are shenanigans in procurement, they say, look to the politicians above. Berdár's interest, they say, is to push up the share price through rationalization and integration, so his team gets its bonus. In this light, it's understandable that he'd want Telecom to capture the Kč 7bn in annual net profit he claims the Telecoms Office is depriving it of. He told Euro that the regulator isn't returning to Telecom the money it spends on the network. Berdár's exact figures can be disputed, but his remarks seem to confirm fears that Telecom's value is being depressed by politicians prior to the privatization. A reversal of regulatory policy after the sale would add tremendous value. Those regulating the regulator would of course not be forgotten.