The Czech Republic is currently facing a problem in the area of fixed internet connection that is unprecedented the EU. Approximately half of the households are connected by hundreds of smaller regional operators, which results from statistics of the Czech Telecommunication Office. At the same time, regional and local companies are mostly operating modern optical technology (FTTH / B connections, i.e. fibre optic cables for home or apartment), although wireless technology remains the most important technology in the Czech Republic. The share of the former monopolists, SPT Telecom, then Český Telecom, then Telefonica O2 and today CETIN and its wholesale partners gradually fell to approximately a quarter of all connections. The rest is attributed to UPC and fixed internet service via LTE mobile network, offered by three mobile operators.

According to European statistics from last June, the Czech Republic is a state where the former monopoly has the smallest share of the fixed connection market, while other operators have 77,6% share. This is mainly due to bad business decisions in the past and that there was no way of catching up to public demand for affordable Internet access at the beginning of the century. The market therefore developed very unconventionally, which stands out especially in comparison with the mobile market, where the Czech Republic is one of the most expensive countries in the EU. The result has lead to a very good position for the fixed internet market in Europe, where there is healthy competition and where technological development pushes mainly small and medium-sized local and regional companies owned by Czech capital.

This paper describes the Czech market and its development and recommends the steps that the public administration should take to facilitate the business of local companies and thus maintain a strong competitive environment on the market, which provides customers with a quality Internet connection at a reasonable price.

Policy Paper – Ondřej Malý, September 2019

Full text in PDF under the link bellow.