Categorized | Unified Communications

Czech incumbent telco O2 splits into retail and wholesale businesses

The Czech Republic has a small but sophisticated telecom market, with a number of alternative operators offering fixed-line services. The key players, including T-Mobile and Vodafone, have a significant presence in a number of other markets in the region. Competition is growing in all sectors, with alternative operators gaining size and strength through organic growth, and through merger and acquisition activity.

Growth in the Czech Republic’s fixed-line broadband market has slowed in line with higher consumer penetration of services. The sector has more recently seen stronger growth in the cable sector as the key player UPC continues to upgrade its network to provide far faster services than are available with DSL. 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.

The fixed-line incumbent, now privatised and 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. In response to these challenges, the operator in June 2015 was split into two separate business units, with O2 CR remaining as a retailer of telecom services and a new unit, CETIN, responsible for the planning, construction and operation of mobile networks, fixed broadband and optical infrastructure, including the wholesale backbone network

Mobile penetration in the Czech Republic is among the highest in Central European nations and is high even by western European levels. With mobile voice markets saturated, the established operators, all owned by major Western European players (now with the exception of O2 CR) have focused on growing revenue by marketing mobile broadband and other value-added services such as mobile content and applications. The country has extensive LTE networks in place, will a growing deployment of LTE-A technology providing services at up to 300Mb/s.

This report provides an overview of the Czech Republic’s telecom sector, covering developments in the market and in the regulatory environment. It provides a range of financial and operating statistics, as well as profiles of the major operators. The report also covers the fixed broadband market, profiling the key players, assessing access platforms and market trends, and delivering a variety of insightful analyses as well as a forecast for broadband take-up to 2020.

For detailed information, table of contents and pricing see: Czech Republic – Telecoms, IP Networks and Digital Media

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