2014 Czech Republic - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

Covering developments in the market and regulatory environment, this report gives an insight into the evolving Czech Republic’s fixed-line telecoms and IT markets, offering valuable statistics, profiles of the major operators and deployed infrastructure. This report also overviews of the country’s fixed broadband market, assessing access platforms and market trends and delivering a variety of data as well as a forecast for broadband take-up to 2020. Key trends in the mobile market are also covered, including an overview of the network operators Vodafone CR, T-Mobile CR, O2 CR and Air Telekom (formerly MobilKom), as well as technological, market and regulatory developments. A range of market and company statistics provides an insight into the state of both the mobile voice and data markets.

Researcher:- Henry Lancaster
Current publication date:- September 2014 (13th Edition)

Executive Summary

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

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of the Czech telecom market
    • 2.2 Government support
  • 3. Regulatory Environment
    • 3.1 Background
      • 3.1.1 EU Regulatory Framework
      • 3.1.2 Revised NFR
    • 3.2 Regulatory authority
      • 3.2.1 Czech Telecommunications Office (CTO)
    • 3.3 Telecom sector liberalisation in the Czech Republic
    • 3.4 Privatisation
      • 3.4.1 Ceske Radiokomunikace
      • 3.4.2 O2 CR
    • 3.5 Interconnect
    • 3.6 Carrier selection and carrier preselection
    • 3.7 Number portability (NP)
    • 3.8 Access
  • 4. Fixed Network Operators
    • 4.1 Overview of operators
    • 4.2 O2 Czech Republic
      • 4.2.1 Sale to PPF Group
    • 4.3 Ceske Radiokomunikace (CRa)
    • 4.4 GTS Czech
    • 4.5 CD-Telematika (CD-T)
    • 4.6 VOLNÝ
  • 5. Telecommunications Infrastructure
    • 5.1 O2 CR
    • 5.2 Alternative operators
    • 5.3 Telecoms & IT
    • 5.4 Wholesaling
  • 6. Broadband Market
    • 6.1 Fixed broadband market
      • 6.1.1 Overview
      • 6.1.2 Cable modems
      • 6.1.3 Asymmetric digital subscriber line (ADSL)
      • 6.1.4 Fibre-to-the-Premises (FttP) networks
      • 6.1.5 Broadband over powerline (BPL)
    • 6.2 Wireless broadband market
      • 6.2.1 Overview
      • 6.2.2 3.6- 3.8GHz auction
      • 6.2.3 WiFi
      • 6.2.4 Wireless local loop (WLL)
      • 6.2.5 WiMAX
      • 6.2.6 Mobile broadband
  • 7. Digital Economy/Digial Media
    • 7.1 Digital Economy
      • 7.1.1 Market overview
      • 7.1.2 Strategy
      • 7.1.3 Legislation
      • 7.1.4 E-government
      • 7.1.5 Infrastructure
      • 7.1.6 E-health
    • 7.2 Digital Media
      • 7.2.1 Overview of broadcasting market
      • 7.2.2 Regulatory developments
      • 7.2.3 Digital TV
  • 8. Mobile Communications
    • 8.1 Overview of the Czech Republic’s mobile market
      • 8.1.1 Mobile statistics
    • 8.2 Regulatory issues
      • 8.2.1 Significant market power (SMP) obligations
      • 8.2.2 Roaming tariffs
      • 8.2.3 Mobile Termination Rates (MTR)
      • 8.2.4 GSM licences
      • 8.2.5 UMTS licences
      • 8.2.6 Mobile data network tender
      • 8.2.7 Mobile Number Portability (MNP)
      • 8.2.8 Network sharing
      • 8.2.9 Spectrum auctions
    • 8.3 Mobile technologies
      • 8.3.1 Analogue
      • 8.3.2 GSM
      • 8.3.3 Code division multiple access (CDMA)
      • 8.3.4 3G UMTS
    • 8.4 Major mobile operators
      • 8.4.1 Overview
      • 8.4.2 O2 Czech Republic
      • 8.4.3 T-Mobile Czech Republic
      • 8.4.4 Vodafone Czech Republic
      • 8.4.5 MobilKom/U:fon
      • 8.4.6 Mobile Virtual Network Operators (MVNOs)
    • 8.5 Mobile voice services
      • 8.5.1 Prepaid cards
    • 8.6 Mobile messaging
      • 8.6.1 Short Message Service (SMS)
      • 8.6.2 Multimedia message service (MMS)
      • 8.6.3 TDD-UMTS
      • 8.6.4 1x EV-DO
    • 8.7 Mobile data services
      • 8.7.1 Overview
      • 8.7.2 General packet radio service (GPRS)
      • 8.7.3 Push-to-talk (PTT)
      • 8.7.4 Enhanced data for GSM evolution (EDGE)
      • 8.7.5 High-speed packet access (HSPA)
      • 8.7.6 Long-term Evolution (LTE)
    • 8.8 Mobile content and applications
      • 8.8.1 Mobile TV
      • 8.8.2 Location-based services
      • 8.8.3 Mobile advertising
      • 8.8.4 M-commerce
      • 8.8.5 M-payments
  • 9. Forecasts
    • 9.1 Forecasts – fixed broadband subscribers – 2010 - 2013; 2020
      • 9.1.1 Scenario 1 – higher broadband subscriber growth
      • 9.1.2 Scenario 2 – lower broadband subscriber growth
      • Table 1 – Country statistics Czech Republic – 2014 (e)
      • Table 2 – Telephone network statistics – 2014 (e)
      • Table 3 – Internet user statistics – 2014 (e)
      • Table 4 – Broadband subscriber statistics – 2014 (e)
      • Table 5 – Mobile statistics – 2014 (e)
      • Table 6 – National telecommunications authority
      • Table 7 – ICT consumer expenditure and investment – 2003 - 2014
      • Table 8 – ICT expenditure by service – 2010 - 2012
      • Table 9 – Telecom sector revenue – 2008 - 2010
      • Table 10 – Household telephony connections by type (%) – 2000; 2005; 2010
      • Table 11 – Household average spend on ICT – 2000 - 2010
      • Table 12 – Proportion of household ICT spend by type – 2005 - 2012
      • Table 13 – Fixed-line ported numbers – 2003 - 2011
      • Table 14 – Fixed-line traffic– 2010 - 2012
      • Table 15 – O2 CR financial data (€) – 2006 - 2013
      • Table 16 – O2 CR financial data (€) – 2006 - 2013
      • Table 17 – O2 CR financial data (CZK) – 2012 - 2014
      • Table 18 – O2 CR fixed-line accesses – 2006 - 2014
      • Table 19 – GTS financial data (CZK) – 2009 - 2010
      • Table 20 – GTS financial data – 2010 - 2012
      • Table 21 – Dial Telecom revenue breakdown – 2008 - 2009
      • Table 22 – Historic - Fixed lines and teledensity – 1995 - 2004
      • Table 23 – Fixed-lines and teledensity – 2005 - 2014
      • Table 24 – VoIP and PSTN lines in service– 2010 - 2012
      • Table 25 – O2 CR naked DSL lines – 2009 - 2014
      • Table 26 – Internet users, subscribers and penetration rate – 1998 - 2014
      • Table 27 – Fixed-line broadband subscribers by access type – 2008 - 2012
      • Table 28 – Household use of broadband by access type – 2005 - 2013
      • Table 29 – Market share of broadband subscribers by access type – 2010 – 2013
      • Table 30 – Fixed broadband penetration by type – 2001 - 2013
      • Table 31 – Cable broadband subscribers (regulator data) – 2010 - 2012
      • Table 32 – UPC broadband subscribers – 2003 - 2014
      • Table 33 – T-Mobile broadband subscribers – 2011 - 2014
      • Table 34 – O2 CR broadband subscribers by access type – 2006 - 2014
      • Table 35 – ADSL subscribers by type – 2006 - 2011
      • Table 36 – ADSL subscribers (regulator data) – 2010 - 2012
      • Table 37 – FttX subscribers (regulator data) – 2010 - 2012
      • Table 38 – Mobile broadband subscribers by type – 2010 - 2012
      • Table 39 – Business e-commerce sales as proportion of total – 2007 - 2014
      • Table 40 – Proportion of businesses engaged in e-commerce – 2010 - 2014
      • Table 41 – Individuals engaged in online purchases – 2005 - 2014
      • Table 42 – Uptake of e-government services by businesses – 2003 - 2013
      • Table 43 – Take up of e-government services by individuals – 2003 - 2012
      • Table 44 – Health practices’ use of internet, select activities – 2008 - 2012
      • Table 45 – CME revenue (Czech Republic, CZK) – 2011 - 2012
      • Table 46 – CME revenue (Czech Republic, US$) – 2011 - 2014
      • Table 47 – O2 CR IPTV subscribers – 2006 - 2014
      • Table 48 – UPC revenue – 2007 - 2010
      • Table 49 – UPC – Homes passed – 2003 - 2014
      • Table 50 – UPC – Subscribers by service type – 2003 - 2014
      • Table 51 – SkyLink subscribers – 2006 - 2011
      • Table 52 – Historic - Mobile subscribers and penetration rate – 1995 - 2004
      • Table 53 – Mobile subscribers and penetration rate – 2005 - 2014
      • Table 54 – European roaming charges – 2007 - 2014
      • Table 55 – Roaming charges by operator (CZK per minute) – 2010; 2011
      • Table 56 – Roaming charges by operator (CZK per minute) – 2012; 2013
      • Table 57 – SMS roaming charges by operator– 2010 - 2013
      • Table 58 – Data roaming charges by operator– 2012 - 2013
      • Table 59 – European data roaming charges – 2012 - 2014
      • Table 60 – MTR charges per minute – 2005 - 2013
      • Table 61 – Annual mobile number portings – 2006 - 2013
      • Table 62 – O2 CR subscribers – 2006 - 2014
      • Table 63 – O2 CR mobile service revenue (€) – 2006 - 2013
      • Table 64 – O2 CR mobile service revenue (CZK) – 2012 - 2014
      • Table 65 – O2 CR ARPU (€) – 2006 - 2013
      • Table 66 – O2 CR ARPU (CZK) – 2012 - 2014
      • Table 67 – T-Mobile CR subscribers – 2006 - 2014
      • Table 68 – T-Mobile CR revenue and EBITDA – 2004 - 2014
      • Table 69 – T-Mobile CR mobile services revenue – 2009 - 2014
      • Table 70 – T-Mobile CR blended ARPU – 2004 - 2014
      • Table 71 – Vodafone CR subscribers – 2008 - 2014
      • Table 72 – Ratio of prepaid to postpaid subscribers – 2001 - 2014
      • Table 73 – Prepaid and postpaid subscribers – 2008 - 2013
      • Table 74 – T-Mobile CR prepaid subscribers – 2005 - 2014
      • Table 75 – O2 CR prepaid subscribers – 2004 - 2014
      • Table 76 – Vodafone CR prepaid subscribers – 2005 - 2014
      • Table 77 – Total SMS messages sent – 2003 - 2014
      • Table 78 – Forecast broadband subscribers – higher growth scenario – 2010 – 2012; 2015; 2020
      • Table 79 – Forecast broadband subscribers – lower growth scenario – 2010 - 2012; 2015; 2020
      • Chart 1 – O2 CR financial data – 2006 - 2013
      • Chart 2 – Fixed lines in service and teledensity – 2005 – 2014
      • Chart 3 – O2 CR broadband subscribers by access type – 2006 – 2014
      • Chart 4 – UPC – Subscribers by service type – 2003 - 2014
      • Chart 5 – Mobile subscribers and penetration rate – 2005 - 2014
      • Chart 6 – O2 CR ARPU (CZK) – 2012 - 2014
      • Chart 7 – T-Mobile CR revenue and EBITDA – 2004 - 2014
      • Chart 8 – Prepaid and postpaid subscribers – 2008 – 2010
      • Exhibit 1 – The EU regulatory framework for communications
      • Exhibit 2 – Access, the local loop and unbundling – an overview
      • Exhibit 3 – 2G spectrum awarded in the Czech Republic

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