EC Vice-President Margrethe Vestagerová, who is in charge of economic competition, said that the promised measures will benefit Czech mobile phone users. The measures include, among other things, the modernization of mobile networks.
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In 2016, the European Commission began investigating the network sharing agreement between T-Mobile, O2 and CETIN. In 2019, it stated that, according to its preliminary conclusions, this agreement restricts competition. Last year, the companies offered to settle allegations of restricting competition.
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According to Klára Zavadilova from the PPF Telecom Group, which includes O2 and CETIN, sharing infrastructure between operators is a common practice widespread in many countries. “It allows operators to ensure the sustainability of the development of quality telecommunications services, especially at a time of growing user demands in the mobile data segment,” she said.
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According to T-Mobil, the decision may have a major impact on the way mobile networks are built in Europe. “Finally, we can fully focus on the further development of 5G networks and continue to work on building the much-needed digital infrastructure of the Czech Republic as part of our vision of a connected country,” added CEO of T-Mobile Czech Republic Jose Perdomo Lorenzo.
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The network sharing agreement between CETIN and T-Mobile includes cooperation and joint construction of passive and active mobile network infrastructure. According to the companies, the Commission’s decision has a positive effect on the overall effectiveness of investments in the telecommunications sector in the Czech Republic, and the commitments made as part of the procedure will enable faster infrastructure development. Thus, all capacity layers of mobile networks will be modernized within 3.5 years at the latest.
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T-Mobile, O2 and CETIN started working together in 2011. A network sharing agreement is a common practice that allows operators to reduce costs and facilitate network development. It is mostly beneficial to consumers as it brings faster network development, cost savings and rural coverage. However, it can also have a negative impact on economic competition.
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If the European Commission discovers a violation of antitrust rules, it can impose a fine of up to ten percent of the company’s annual sales and order the modification of its business practices.
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