The fact that the situation on the small Czech sand is not exactly ideal has been pointed out by mobile experts and political representatives for a long time. Last year, even Prime Minister Andrej Babiš (YES) put himself directly into the operators – he stated that if the operators did not become cheaper, they would deserve more taxation.
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“In principle, I reject the sector tax, but mobile operators would deserve to be taxed because they scandalously abuse their market position and are arrogant on top. In five years, they have received 55 billion in dividends, and it is not at all ashamed that the Czechs have some of the most expensive data in Europe. It is a clear message, so let’s hope that they finally grab their noses and that prices become cheaper, “Babiš told Práva last April.
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This was not the first time that lawmakers under his leadership had spoken out against operators. Already at the beginning of last year, they pushed for an easier replacement of the mobile operator, so that people could take advantage of competitive offers within two days and without fines.
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However, as it turned out, the desired reduction in the price of telecommunications services did not bring about it. The problem is that the individual offers of domestic operators are similar to eggs, eggs – most people have no reason to switch at all.
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And nothing has changed after more than a year, when the easier transition came into force. For example, at O2, people get unlimited calls, SMS messages and internet with a capacity of 4 GB for CZK 649. At Vodafone, the same tariff will cost CZK 599. T-Mobile charges CZK 625 for an unlimited tariff with a 4GB data limit.
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We will also come across very similar price offers if we look at more expensive tariffs with a larger portion of data or completely unlimited internet.
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Light at the end of the tunnel? No…
The light at the end of the tunnel was to be the auction of frequencies for fifth-generation mobile networks. At the beginning of the year, the CTU boasted that the conditions of the auction support the development of competition on the mobile market in order to ensure the long-term positive development of mobile services prices.
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However, the auction was quite chaotic, not least because the operators protested several times against the set rules. But mainly because the rules have changed several times. Due to a change in the conditions of the auction, the government even removed the then chairman of the CTU, Jaromír Novák, in January. She was replaced by Hana Továrková, the current board member. She was given a clear task – to bring a fourth operator to market.
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Chairwoman of the Czech Telecommunication Office (ČTÚ) Hana Továrková
Photo: Ondřej Deml, ČTK
It turned out that it would not be easy even before the start of the auction, when ČEZ withdrew from it. It was this energy group that was talked about as one of the most serious candidates. In the end, however, ČEZ did not even file an application.
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“We have long and in detail analyzed the possibility of participating in the auction for the 5G operator. In the end, we decided not to submit an application for this year’s auction, “said Ladislav Kříž, the group’s spokesman, for ČTK in early October.
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Existing operators remain at the helm
In total, seven participants applied for free frequencies for 5G mobile networks, but in the end only five of them were successful in the auction. Out of a total of four main units in category A, which includes the required 700 MHz band, two Vodafone took over, one each from T-Mobile and O2.
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It was this band that was key to the development of the fifth-generation mobile network, and would also enable the creation of a new operator in the Czech Republic.
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All three mentioned operators also successfully participated in the auction in the 3400–3600 MHz band, but CentroNet and Nordic Telecom also managed to take over the free units here. On the contrary, the unsuccessful participants in the auction are Sev.en Innovations and PODA.
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The 20 MHz units in the 3400-3600 MHz band, which competed for, are linked to a frequency lease commitment to support Industry 4.0.
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Havlíček: the auction was successful
Nevertheless, Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček considers the auction a success. “As it was unlikely that the 700 MHz band would be used by the new operator, the concept of the auction prepared under the previous chairman of the CTU was changed and the emphasis was on increasing competition over the 3.4 – 3.8 GHz band,” said Havlíček.
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“I am glad that even during the difficult period of the coronavirus pandemic, the auction was completed, and I believe that the newly established national roaming and other players in the mobile market will significantly help reduce mobile data prices for all. It is also important that the auction was held this year, with more than the expected budget yield, “added Havlíček.
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Deputy Prime Minister, Minister of Industry and Trade and Minister of Transport Karel Havlíček.
Photo: Roman Vondrouš, ČTK
The highest expectations therefore seem to have been in the fight for higher frequency bands. “In the 3.4 – 3.8 GHz band, we have a new major player in the mobile market and the role of other operators has also strengthened, namely PODA and Nordic Telecom. Compared to the original form of the auction, there was also the possibility of industrial use of part of the spectrum, which is very important for our economy, “said Petr Očko, Deputy Minister of Industry and Trade for Digitization and Innovation, adding:” This will significantly help modernization and digitization. All this thanks to the innovative concept of the auction, which responds well to the Czech strategy of developing 5G networks. “
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The auction actually brought more money to the state treasury, namely 5.596 billion crowns instead of the expected 5.4 billion crowns. But that the cards currently dealt could bring about a reduction in the price of telecommunication services is a rather pious wish…
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Revolution named 5G
5G will change everything – and it will be a much more dramatic change than the ones we associate with the advent of wireless technology. The 5G standard will not only be used to connect computers and mobile phones to the Internet. It will also be used by smart devices, which are gradually settling in domestic households.
The new generation of mobile internet will find application, for example, in transport, virtual reality, sports, but also in the field of health.
Likewise, smart washing machines and refrigerators will be connected to 5G networks, but also, for example, autonomous cars – a fast and stable Internet connection on the road is key to their development.
While 5G may only seem like another mobile standard, in reality its benefits will be far greater. According to Ericsson studies, the fifth generation of mobile networks will make high-speed Internet accessible to up to a billion people and devices. What’s more, it will allow the expansion of modern technology.
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