2016 Czech Republic - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Czech infrastructure owner CETIN to invest CZK22 billion in through to 2022

The Czech Republic’s telecom sector has undergone a significant transformation during the last two years. The fixed-line incumbent, privatised and majority owned by an investment firm, is facing the increasingly challenging task of stabilising revenue as fixed-line traffic continues to migrate to mobile operators and competing fixed-line operators. The company has transitioned itself to face market challenges, having split into separate divisions and created the CETIN unit to manage the fixed and mobile networks while also operating as a wholesale network provider.

The country’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 take-up of videostreaming 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 incumbent.

Mobile penetration in the Czech Republic is among the highest in Central Europe. The market has attracted investment from the major Western European players, with Deutsche Telekom and Vodafone Group each having an interest in the sector. All operators have focused on growing revenue by marketing mobile broadband and other value-added services such as mobile content and applications. To this end they have invested in LTE infrastructure and technologies. LTE coverage reaches about 98% of the population, while upgraded technologies including LTE-A and tri-band carrier aggregation are being widely deployed.

Growth in the fixed-line broadband market has slowed in line with higher penetration. The sector has more recently seen stronger growth in the cable sector, as the key player UPC CR continues to upgrade its network to provide far faster services than are available with DSL. While UPC CR already offers data speeds of up to 300Mb/s, its parent Liberty Global is investing in DOCSIS3.1 technology and commercial 1Gb/s services could be available during 2017 or 2018. The migration away from DSL has also been prompted by the expansion of 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.

This report provides an overview of the evolving fixed-line telecoms and IT markets in the Czech Republic, including a review of the regulatory environment. It incorporates a range of updated statistics, as well as profiles of the major operators and their business strategies. The report also addresses developments in the fixed broadband market, profiling the key players, and assessing access platforms and market trends. In addition the report covers the mobile market, providing an overview of the network operators Vodafone, T-Mobile, O2 Czech Republic, as well as technological, market and regulatory developments. A range of market and company statistics provide an insight into the state of both the mobile voice and data markets, as well as the performance and strategies of the key network players.

Key developments:

• O2 CR splits infrastructure assets into a new business entity, CETIN;
• CETIN planning to invest CZK22 billion in network infrastructure through to 2022;
• Regulator sets out conditions for a 3.6-3.8GHz spectrum auction;
• Vodafone CR launches VDSL2 services;
• RIO Media building one of the largest FttP networks;
• BPL in Prague a success through SmartCity Platform;
• Cloud computing now used by a quarter of businesses;
• EC antitrust regulators investigate network sharing arrangements between O2 CR and T-Mobile CR;
• Regulator auctions remaining blocks of spectrum in the 1800MHz and 2600MHz bands;
• T-Mobile switches on LTE in the 2600MHz band, adding to services in the 800MHz and 1800MHz bands;
• O2 CR contracts CETIN to build additional mobile transmitters across Prague;
• Vodafone CR launches VoLTE and Wi-Fi calling services;
• MNOs promote m-payment services;
• T-Mobile CR and Vodafone CR launch tri-band carrier aggregation LTE services;
• T-Mobile looks to end 3G services by 2020;
• UPC promotes 300Mb/s data speeds to support bundled services;
• Report update includes the regulator’s market data updates for 2015, telcos’ operating and financial data to Q3 2016, recent market developments.

Companies mentioned in this report:

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