HOMEPAGE

Business

 

Czech telecoms regulator given ammunition for attack on mobile data charges

 
photo:  (radio.cz)
 

The Czech Telecommunication Office (ČTÚ) has made a call which many of its critics say should have been pretty obvious by now and should have been made long ago. The office has decided that competitive market conditions do not exist on the market for mobile services for data.

 
 

The not so surprising conclusion is based on an analysis of the market which was published on August 17. Prices, it said, are being kept high because of the lack of market competition. And on the back of that the office is now promising action.

Among the options available, the most direct and hard hitting would be for the office to intervene and dictate prices directly to the main Czech mobile phone operators. The government’s current coordinator for the digital economy and former member of the telecommunications office council, Ondřej Malý, told the business daily Hospodářské Noviny that the office must now send a clear signal that it is not happy with the state of the mobile data market.

An efficient and economic mobile data market is seen as fundamental for the development of the new applications and services that are seen making their debut on the e-commerce and services market over the next decade. The problem from the Czech perspective is that mobile data charges are currently around three times those in neighbouring Poland and even higher than in much richer Austria.

One of the flaws highlighted by the latest ČTÚ study is that the three big Czech telecom companies, Vodafone, O2, and T-Mobil, re-sell space on the networks to so called virtual operators under such strict and uninviting conditions that the later cannot undercut the giants and are able to make only the slimmest profit themselves from their offer. In spite of these punitive conditions there are still around 100 virtual operators on the Czech market.

An attack on the re-sale conditions offered by the big operators is seen as one way to push mobile data prices down, according to experts and telecommunications office board member Josef Chomyn, the daily newspaper says. The office, however, is still holding out the hope that the big telecoms operators will react and start cutting prices before it is forced to act, the paper adds.

 
Author: Český rozhlas Radio Praha
 
Added: 18.08.2017
 
 
 

Related articles

 
Business
 
 

Czech watchdog finds significant...

The Czech spending watchdog, the Supreme Audit Office, has submitted a caustic report on the accounting...

 
 
Business
 
 

Inspectors uncover numerous cases of...

Buying used cars in the Czech Republic has long been considered a risky proposition and sadly checks by...

 
 
Business
 
 

Czech companies face jobs skills...

Job and skills shortages are a topic on the tongues of most Czech businessmen and women at the moment...

 
 
Business
 
 

Škoda Auto breaks sales records in...

The Czech Republic’s biggest manufacturing company, Škoda Auto, set new sales records in 2017 with demand...

 
Most favourite

History of Czech fine art

What happened in the realm of fine art at the very beginning of the Czech…

Climate

The Czech Republic is a landlocked country located in moderate geographical…

The most significant current discoveries

During the last decade, Czech science has made many revolutionary discoveries…

Czech language

The Czech language belongs to the group of West Slavic languages. From another…