Telefónica of Spain says it will start the process of rebranding Cesky Telecom and Eurotel Prague to O2 next month, and will accompany the move with the launch of new services, such as TV broadcasts over fixed lines. The rebranding is expected to cost ‘several hundreds of millions of crowns’ and will be supported by a national publicity campaign. Telefónica O2 Czech Republic was established on 1 July through the merger of former monopoly fixed line operator Cesky Telecom and its wholly owned mobile arm Eurotel Prague. The enlarged entity has over 2.8 million fixed lines and 4.77 million mobile customers. Telefónica acquired a 51% stake in Cesky Telecom from the Czech government for around CZK82.6 billion (USD3.77 billion) in 2005 and has since upped its equity interest to 70%.