Profile of the Czech communications market

Abstract

The Czech Republic has made significant advances in the development of its communications industry during the post-1989 era. These advances include partial privatization and significant capital investment in the fixed line and mobile infrastructure, market liberalization moving toward ending of monopoly in most market segments, and creation of huge demand for communication services of all types among business and residential consumers. As in more developed countries, the communications market in the Czech Republic has grown increasingly complex over the past 10 years. Indeed, the Czech communications market has developed well beyond the point where it can be adequately described purely in terms of number of fixed lines installed, teledensity, and the waiting list for basic telephone service. Therefore, the factors that will be critical in the next stage of market development must also be considered. These factors include the commitment to finalize market liberalization and end even partial state ownership of incumbents, the ability to attract a wide range of local startups and international telecom companies as competitors to the incumbents and each other, and the ability of those competitors to offer a cross-section of services including voice, data, and video as bundled services directly to the end consumer. This profile examines the Czech communications market, describing the players, the main issues they face, and their strategies for future growth.