20 22 November
Ministry of
Transport &
Communications
Marcela Gürlichova
Deputy Minister

• population
• labour force
• unemployment
1999
• GDP (nominal)
• GDP per capita
• GDP per capita at PPP
• GDP growth
10.3 million
5.4 million
9.0%
USD 56 billion
USD 5,440
USD 13,080
-0.2%
• GDP growth
2000 - forecast
2.5%
• annual inflation 2.1%
• cumulative FDI inflow
1990-1999
USD 19.3 billion
Ministry of Transport and Communications CZECH REPUBLIC

4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
Catching up: development of mobile and fixed lines
3.279.773
3.741.492
3.806.137
3.851.000
1.961.142
2.150.594
2.818.866
2.398.430
527.500
960.500
1.945.000
2.922.000
45.800
200.400
mobile fixed
27.400
11.100
Mobile penetration (mid 2000): 28,3%
Fixed lines penetration (mid 2000): 37,4%
Ministry of Transport and Communications CZECH REPUBLIC

Others
15.4%
FNM
51.1%
TelSource
27%
KPN
6.5%
EuroTel, s.r.o. (51%)
Ministry of Transport and Communications CZECH REPUBLIC

Others
28.2%
FNM
51%
TeleDanmark
20.8%
RadioMobil, a.s. (51%)
Contactel, s.r.o. (50%)
Ministry of Transport and Communications CZECH REPUBLIC

• mid 2000 - 2,9 mil mobile subscribers
• end 2000 - 3,5 mil mobile subs. (expect.)
• three mobile operators:
– EuroTel (since 1991)
– RadioMobil (since 1996)
– Cesky Mobil (since 2000)
Ministry of Transport and Communications CZECH REPUBLIC

UMTS licensing - options for the CR:
– 3 licences to the current GSM operators
(2x10MHz + 5MHz each)
– a single UMTS licence (2x15MHz + 5MHz) excluding GSM operators (beauty contest or auction)
– 1-3 licences (2x10MHz + 5MHz each) excluding GSM operators (beauty contest or auction)
– mix of the above
Minsitry of Transport and Communications favours the first option
Ministry of Transport and Communications CZECH REPUBLIC

• National Telecommunications Policy (1999) main objective: adoption of the EU regulatory framework
– 1) Liberalisation
• Telecommunications activities may be in the Czech Republic performed in accordance with conditions given by the Act on
Telecommunnications without any other restrictions
• 31 December 2000 – the exclusive rights of CESKY TELECOM, a.s. shall expire
– 2) Regulation
• Non-discriminating and transparent market conditions
• Independent regulatory authority, ministry
• Licence, frequency and number allocation, prices etc.
• Universal service
Ministry of Transport and Communications CZECH REPUBLIC

– 3) Free Competition and Open Market
• ONP
• Carrier selection, carrier pre-selection, number portability
• Asymmetric regulation - significant market power
– 4) Further Sale of Property Interests of the
State
• CESKE RADIOKOMUNIKACE a.s. (51% NPF)
• CESKY TELECOM, a.s. (51,1% NPF)
9
CZECH REPUBLIC Ministry of Transport and Communications

• Act No. 217/2000 Coll., on Electronic
Signature
• Act No. 151/2000 Coll., on
Telecommunications
– issuing of licences
– equipment
– universal service
– ONP principles
– frequency spectrum management and numbering
Ministry of Transport and Communications CZECH REPUBLIC

• Ministry of T&C
– policy and strategy, forign affairs (including
EU matters), legislation
• Czech Telecommunications Office
– independent on MTC and operators
– day-to-day regulation
– licensing, spectrum and number management
Ministry of Transport and Communications CZECH REPUBLIC

Ministry of T&C www.mdcr.cz
Czech
Telecommunication
Office www.ctu.cz
Marcela Gürlichová gurlicho@mdcr.cz
Ministry of Transport and Communications CZECH REPUBLIC