Czech Republic – UPC network investment results in cable broadband gains on DSL
Economic background
Following two years of solid growth, the economy faltered in 2008, falling by 4.7%. Slow growth was again achieved in 2009, though it slowed again in 2011, to 1.7%, and is expected to show only marginal growth for 2012. The recovery process has been jeopardised by inflationary pressures caused by a growth in costs for oil, food and raw materials, counteracted by the strengthening Czech currency.
Telecom market overview
Economic difficulties have been mirrored in the telecoms sector, where revenue has fallen steadily since 2010. The largest fall has been in the mobile sector, while overall ICT revenue has also declined. Little respite is expected through to 2013 as telcos face stiffening competition in a maturing market as well as the effects of newly imposed termination and roaming tariffs.
Broadband market
In general terms, the market share of broadband subscribers held by DSL providers has fallen since 2006 while the cable sector has been relatively stable. The Market share of FttX has risen steadily, though at a slower pace than that of mobile broadband. In the wake of the greater availability and capabilities of mobile technologies, the market share of broadband based on WiFi and FWA has fallen since about 2007.
Key telecom parameters – 2010; 2012
| Sector |
2010 |
2012 |
| Subscribers by sector (million): | ||
| Fixed broadband subscribers | 2.30 | 2.79 |
| Mobile broadband | 0.54 | 0.76 |
| Mobile phone | 14.4 | 13.5 |
| Fixed-line telephony | 1.89 | 1.65 |
| Penetration by sector: | ||
| Fixed broadband | 22% | 26% |
| Mobile | 136% | 131% |
| Fixed-line | 18% | 14% |
(Source: BuddeComm)
Market Highlights
- Following ASO in early 2012, the national transmission company Radiokomunikace has concentrated on using DVB-T2 to distribute channels. The company aims to have DVB-T2 services reaching 60% of the population by the end of 2012.
- The main cableco UPC offers a 100Mb/s service based on Euro DOCSIS 3.0. This greater speed has placed considerable pressure on Telefónica CR’s DSL network, and has led to the cable sector gaining a larger share of the broadband market. UPC’s broadband subscriber base has considerable room to grow given that only a third of tw0-way homes passed by its network are broadband customers.
- The auction for spectrum in a range of bands expected later in 2012 will enable a fourth player to enter the market, using reserved spectrum in the 800MHz band.
BuddeComm’s annual publication, Czech Republic – Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Eastern Europe’s more progressive countries. The report includes the regulator’s market data to the end of 2011, telcos’ financial and operating data to June 2012, and market developments in mid-2012.
For detailed information, table of contents and pricing see: Czech Republic – Telecoms, IP Networks, Digital Media and Forecasts
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