2013 Czech Republic - Telecoms, IP Networks, Digital Media and Forecasts

Spectrum auction seen as vital to developing competition in the mobile market

BuddeComm’s annual publication, Czech Republic - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors of one of Europe’s more progressive markets. The report includes the regulator’s 2011 market data and updates to mid-2012, telcos’ operating and financial data to Q1 2013 and market developments to mid-2013.

Telecom market overview

The Czech Republic has a well developed mobile and broadband market, supported by the activities of major international telcos. Total revenue from the electronic communications sector has fallen in recent years, partly due to regulatory measures relating to tariffs, roaming and access charges. Consumers have also scaled back their spending on non-essential telecom services while the economy more generally is still to recover from weakening demand for export products. The recovery process has been jeopardised by inflationary pressures caused by a growth in costs for oil, food and raw materials. Nevertheless, investment in telecom networks and services has increased since 2010 as telcos prepare the groundwork to deliver new IP-based services in coming years.

Mobile market

Mobile penetration in the Czech Republic is among the highest in Eastern Europe. Although four network operators provide services, the sector is dominated by T-Mobile, Vodafone and Telefónica. These have focused on migrating prepaid users to postpaid plans to develop higher ARPU and revenue, which has fallen in recent years due to competition and price regulations issued by the regulator. To encourage further competition and develop the nascent MVNO sector the regulator has considered implementing further measures and price controls. The imminent auction of 800MHz spectrum could also reserve frequencies for a new entrant.

Key telecom parameters – 2010; 2013

(Source: BuddeComm)

Market Highlights

• Telefónica’s longstanding m-payments platform with Visa, in partnership with a number of banks, has been supplemented by an additional service which includes payment terminals from Ingenico. SIM cards supporting NFC technologies will greatly speed up the adoption of m-payment services in coming years.
• The delayed auction of 800MHz spectrum licences, expected later in 2013, will go far to increase competition in a mobile sector dominated by only three players. With a portion of the band being reserved for new entrants, the auction is expected to raise at least CZK7 billion for the state.
• Vodafone trialled LTE services in mid-2013, with a commercial service expected later in the year using frequencies in the 1800MHz band and offering data rates at up to 100Mbs.
• Guided by the EC’s costing methodology, the regulator’s reduction of MTRs has lowered costs for consumers.
• In terms of overall market share by platform, the DSL and wireless (WLL) sectors have lost ground since 2004, the cable sector has remained steady, and the mobile and fibre sectors have grown rapidly.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in the Czech Republic. It provides further information on:

• Market liberalisation and regulatory issues;
• The impact of the global economic crisis;
• Telecoms operators – privatisation, acquisitions, new licences;
• Mobile data market developments in coming years in light of spectrum auctions and new license awards;
• 3G developments, regulatory issues and technologies including HSPA and LTE;
• Broadband migration to an FttH architecture;
• Historical and current subscriber statistics and forecasts;
• ARPU statistics and forecasts.

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