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Czech Republic - Telecoms, IP Networks, Digital Media and Forecasts

Czech Republic - Telecoms, IP Networks, Digital Media and Forecasts

MNOs prepare to reap benefits of LTE network sharing agreements

The Czech Republic’s small but mature telecom market enjoys effective competition in all segments, with alternative operators gaining size and strength through organic growth. Merger and acquisition activity continues, while the incumbent O2 CR was in early 2014 acquired by the investment firm PPF, bringing to an end Telefónica’s longstanding involvement in the market.

O2 CR is facing the increasingly challenging task of stabilising revenue as fixed-line traffic continues to migrate to mobile operators and competing fixed-line operators. Mobile penetration in the Czech Republic is among the highest in Central European nations. With mobile voice markets saturated, the established operators have focused on growing revenue by marketing mobile broadband and other value-added services such as mobile content and applications.

The Czech Republic’s media market is evolving under the weight of digital TV and convergence trends, with over half the population now receiving TV services digitally. The uptake of IPTV services is growing on the back of more affordable broadband access while the cable TV market has undergone consolidation to create a major player sizeable enough to compete effectively against the telecoms incumbent.

The country’s fixed-line broadband market continues to experience growth, though this has begun to slow in response to higher consumer penetration of services. The sector has more recently seen stronger growth in the cable sector as the proportion of DSL lines has begun to slide as customers migrate to fibre networks which are being built out by a number of telcos. Fixed wireless broadband remains strong, with penetration among the highest in the EU. Widespread broadband access has laid the foundation for a developing internet society, with a range of online services and activities taking place.

Key developments:

O2 Czech becomes part of the investment group PPF; banking group acquires 6% of O2 CR from smaller investors; VOLNY transfers DSL subscribers to O2 CR; stagnant economy affecting consumer spend on telecom services; regulator consults on the tender for additional frequencies in the 800MHz, 1800MHz and 2600MHz bands; O2 CR and T-Mobile CR agree a national LTE network sharing deal, Vodafone negotiates to join as well; MNOs promote m-payment services; T-Mobile CR launches DC-HSPA+ offering 42Mb/s as well as the country’s first LTE-A service; Vodafone upgrades network HSPA+; spectrum auction in 800MHz band results; mobile ARPU continues to fall; MVNO market developing with new players; MTRs reduced for incumbent MNOs; Vodafone launches VDSL2 services; RIO Media building one of the largest FttP networks; BPL in Prague a success through SmartCity Platform; cloud computing used by 20% of businesses; SkyLink bought by M7 Group; DVB-T2 reaches two-thirds population coverage; UPC plans to create separate infrastructure and services divisions; regulator’s 2013 annual report and market data updates; telcos’ operating and financial data to Q2 2014; market developments into 2014.

Companies and subsidiaries mentioned in this report include:

O2 Czech Republic, T-Mobile Czech Republic, GTS Czech, Èeské Radiokomunikace, MobilKom, T-Systems Czech Republic, BT, ÈD-Telematika, ÈEZ ICT Services, UPC Èeská republika, Vodafone CR, Air Telekom (MobilKom), UPC, DigiTV, CRa, CDG, Nej TV, RIO Media

Data in this report is the latest available at the time of preparation and may not be for the current year


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics Czech Republic - 2014 (e)
    • Table Telephone network statistics - 2014 (e)
    • Table Internet user statistics - 2014 (e)
    • Table Broadband subscriber statistics - 2014 (e)
    • Table Mobile statistics - 2014 (e)
    • Table National telecommunications authority
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW OF THE CZECH TELECOM MARKET
      • Table ICT consumer expenditure and investment - 2003 - 2014
      • Table ICT expenditure by service - 2010 - 2012
      • Table Telecom sector revenue - 2008 - 2010
      • Table Household telephony connections by type (%) - 2000; 2005; 2010
      • Table Household average spend on ICT - 2000 - 2010
      • Table Proportion of household ICT spend by type - 2005 - 2012
    • GOVERNMENT SUPPORT
  • REGULATORY ENVIRONMENT
    • BACKGROUND
      • EU Regulatory Framework
      • Revised NFR
    • REGULATORY AUTHORITY
      • Czech Telecommunications Office (CTO)
    • TELECOM SECTOR LIBERALISATION IN THE CZECH REPUBLIC
    • PRIVATISATION
      • Ceske Radiokomunikace
      • O2 CR
    • INTERCONNECT
    • CARRIER SELECTION AND CARRIER PRESELECTION
    • NUMBER PORTABILITY (NP)
      • Table Fixed-line ported numbers - 2003 - 2011
    • ACCESS
  • FIXED NETWORK OPERATORS
    • OVERVIEW OF OPERATORS
      • Table Fixed-line traffic- 2010 - 2012
    • O2 CZECH REPUBLIC
      • Table O2 CR financial data (€) - 2006 - 2013
      • Table O2 CR financial data (€) - 2006 - 2013
      • Table O2 CR financial data (CZK) - 2012 - 2014
      • Table O2 CR fixed-line accesses - 2006 - 2014
      • Sale to PPF Group
    • CESKE RADIOKOMUNIKACE (CRA)
    • GTS CZECH
      • Table GTS financial data (CZK) - 2009 - 2010
      • Table GTS financial data - 2010 - 2012
    • CD-TELEMATIKA (CD-T)
    • VOLNÝ
      • Table Dial Telecom revenue breakdown - 2008 - 2009
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • Table Historic - Fixed lines and teledensity - 1995 - 2004
    • Table Fixed-lines and teledensity - 2005 - 2014
    • Table VoIP and PSTN lines in service- 2010 - 2012
    • O2 CR
    • ALTERNATIVE OPERATORS
    • TELECOMS &IT
    • WHOLESALING
      • Table O2 CR naked DSL lines - 2009 - 2014
  • BROADBAND MARKET
    • FIXED BROADBAND MARKET
      • Overview
        • Table Internet users, subscribers and penetration rate - 1998 - 2014
        • Table Fixed-line broadband subscribers by access type - 2008 - 2012
        • Table Household use of broadband by access type - 2005 - 2013
        • Table Market share of broadband subscribers by access type - 2010 - 2013
        • Table Fixed broadband penetration by type - 2001 - 2013
      • Cable modems
        • Table Cable broadband subscribers (regulator data) - 2010 - 2012
        • Table UPC broadband subscribers - 2003 - 2014
      • Asymmetric digital subscriber line (ADSL)
        • Table T-Mobile broadband subscribers - 2011 - 2014
        • Table O2 CR broadband subscribers by access type - 2006 - 2014
        • Table ADSL subscribers by type - 2006 - 2011
        • Table ADSL subscribers (regulator data) - 2010 - 2012
      • Fibre-to-the-Premises (FttP) networks
        • Table FttX subscribers (regulator data) - 2010 - 2012
      • Broadband over powerline (BPL)
    • WIRELESS BROADBAND MARKET
      • Overview
      • 3.6- 3.8GHz auction
      • WiFi
      • Wireless local loop (WLL)
      • WiMAX
      • Mobile broadband
        • Table Mobile broadband subscribers by type - 2010 - 2012
  • DIGITAL ECONOMY/DIGIAL MEDIA
    • DIGITAL ECONOMY
      • Market overview
        • Table Business e-commerce sales as proportion of total - 2007 - 2014
        • Table Proportion of businesses engaged in e-commerce - 2010 - 2014
      • Strategy
        • Table Individuals engaged in online purchases - 2005 - 2014
      • Legislation
      • E-government
        • Table Uptake of e-government services by businesses - 2003 - 2013
        • Table Take up of e-government services by individuals - 2003 - 2012
      • Infrastructure
      • E-health
        • Table Health practices' use of internet, select activities - 2008 - 2012
    • DIGITAL MEDIA
      • Overview of broadcasting market
        • Table CME revenue (Czech Republic, CZK) - 2011 - 2012
        • Table CME revenue (Czech Republic, US$) - 2011 - 2014
      • Regulatory developments
      • Digital TV
        • Table O2 CR IPTV subscribers - 2006 - 2014
        • Table UPC revenue - 2007 - 2010
        • Table UPC - Homes passed - 2003 - 2014
        • Table UPC - Subscribers by service type - 2003 - 2014
        • Table SkyLink subscribers - 2006 - 2011
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF THE CZECH REPUBLIC'S MOBILE MARKET
      • Mobile statistics
        • Table Historic - Mobile subscribers and penetration rate - 1995 - 2004
        • Table Mobile subscribers and penetration rate - 2005 - 2014
    • REGULATORY ISSUES
      • Significant market power (SMP) obligations
      • Roaming tariffs
        • Table European roaming charges - 2007 - 2014
        • Table Roaming charges by operator (CZK per minute) - 2010; 2011
        • Table Roaming charges by operator (CZK per minute) - 2012; 2013
        • Table SMS roaming charges by operator- 2010 - 2013
        • Table Data roaming charges by operator- 2012 - 2013
        • Table European data roaming charges - 2012 - 2014
      • Mobile Termination Rates (MTR)
        • Table MTR charges per minute - 2005 - 2013
      • GSM licences
        • Table 2G spectrum awarded in the Czech Republic
      • UMTS licences
      • Mobile data network tender
      • Mobile Number Portability (MNP)
        • Table Annual mobile number portings - 2006 - 2013
      • Network sharing
      • Spectrum auctions
    • MOBILE TECHNOLOGIES
      • Analogue
      • GSM
      • Code division multiple access (CDMA)
      • 3G UMTS
    • MAJOR MOBILE OPERATORS
      • Overview
      • O2 Czech Republic
        • Table O2 CR subscribers - 2006 - 2014
        • Table O2 CR mobile service revenue (€) - 2006 - 2013
        • Table O2 CR mobile service revenue (CZK) - 2012 - 2014
        • Table O2 CR ARPU (€) - 2006 - 2013
        • Table O2 CR ARPU (CZK) - 2012 - 2014
      • T-Mobile Czech Republic
        • Table T-Mobile CR subscribers - 2006 - 2014
        • Table T-Mobile CR revenue and EBITDA - 2004 - 2014
        • Table T-Mobile CR mobile services revenue - 2009 - 2014
        • Table T-Mobile CR blended ARPU - 2004 - 2014
      • Vodafone Czech Republic
        • Table Vodafone CR subscribers - 2008 - 2014
      • MobilKom/U:fon
      • Mobile Virtual Network Operators (MVNOs)
    • MOBILE VOICE SERVICES
      • Prepaid cards
        • Table Ratio of prepaid to postpaid subscribers - 2001 - 2014
        • Table Prepaid and postpaid subscribers - 2008 - 2013
        • Table T-Mobile CR prepaid subscribers - 2005 - 2014
        • Table O2 CR prepaid subscribers - 2004 - 2014
        • Table Vodafone CR prepaid subscribers - 2005 - 2014
    • MOBILE MESSAGING
      • Short Message Service (SMS)
        • Table Total SMS messages sent - 2003 - 2014
      • Multimedia message service (MMS)
      • TDD-UMTS
      • 1x EV-DO
    • MOBILE DATA SERVICES
      • Overview
      • General packet radio service (GPRS)
      • Push-to-talk (PTT)
      • Enhanced data for GSM evolution (EDGE)
      • High-speed packet access (HSPA)
      • Long-term Evolution (LTE)
    • MOBILE CONTENT AND APPLICATIONS
      • Mobile TV
      • Location-based services
      • Mobile advertising
      • M-commerce
      • M-payments
  • FORECASTS
    • FORECASTS - FIXED BROADBAND SUBSCRIBERS - 2010 - 2013; 2020
      • higher broadband subscriber growth
        • Table Forecast broadband subscribers - higher growth scenario - 2010 - 2012; 2015; 2020
      • lower broadband subscriber growth
        • Table Forecast broadband subscribers - lower growth scenario - 2010 - 2012; 2015; 2020

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