TELECOMMUNICATIONS LIBERALIZATION  IN THE CZECH REPUBLIC Svatoslav Novák APVTS Chairman  (Association of Public Telecommun...
The Czech Republic  –   an important indicators <ul><li>NUBMER OF INHABITANTS  10  million </li></ul><ul><li>PRIVATE OWNER...
The Trend of fix and mobile lines   MOBILE LINES (SIM) FIX LINES
The trends of Broadband connections
Milestones of the Czech Telecommunications/phase  I.   1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS  establ...
Milestones of the Czech Telecommunications/phase   II. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. <ul><li>State...
Milestones of the Czech Telecommunications/phase  III.   1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. <ul><li>199...
Milestones of the Czech telecommunications/phase  IV. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS  Establi...
Milestones of the Czech telecommunications/phase V. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS  Establish...
Milestones of the Czech Telecommunications/phase  VI. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS  Establi...
Networks interconnection  - LRAIC <ul><li>Cost model for setting interconnection rates in fixed competitive networks ( lon...
Number  Portability – CNPAC  <ul><li>APVTS, together with the CTU formed an open Forum for NP </li></ul><ul><li>APVTS deve...
  Interconnection rates and the FIX – MOBIL models <ul><li>An effort to withdraw barriers hindering calls from mobile to f...
Local Loop Unbundling  - LLU <ul><li>LLU – Local loop availability </li></ul><ul><li>Incumbent strongly objects but realiz...
Grounds for association formation  - APVTS <ul><li>APVTS presents common solutions to the state administration  </li></ul>...
Association of Public Telecommunications Network Operators APVTS <ul><li>Our objective </li></ul><ul><ul><li>to support an...
Telco market and its governing in the ČR  / 2007 GOVERNMENT MINISTRY OF INFORMATICS CZECH TELECOMMUNICATION OFFICE COMMITT...
Svatoslav Novák [email_address] [email_address] www.apvts.cz APVTS K Červenému dvoru 25a 130 00 Prague 3, The Czech Republic
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TELECOMMUNICATIONS LIBERALIZATION IN THE CZECH REPUBLIC

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TELECOMMUNICATIONS LIBERALIZATION IN THE CZECH REPUBLIC

  1. 1. TELECOMMUNICATIONS LIBERALIZATION IN THE CZECH REPUBLIC Svatoslav Novák APVTS Chairman (Association of Public Telecommunications Network Operators) Zagreb 21.2.2007
  2. 2. The Czech Republic – an important indicators <ul><li>NUBMER OF INHABITANTS 10 million </li></ul><ul><li>PRIVATE OWNERSHIP OF TELECOMMUNICATIONS 100 % </li></ul><ul><li>PENETRATION OF FIXED LINES 27% </li></ul><ul><li>PENETRATION OF MOBILE TELEPHONES 122% </li></ul><ul><li>PENETRATION OF PC IN HOUSEHOLDS 47% </li></ul><ul><li>HOUSHOLDS CONNECTED TO INTERNET 23% </li></ul><ul><li>HOUSEHOLDS WITH BROADBAND 18% </li></ul><ul><li>FIXED LINES OPERATORS 5/1* (48)** </li></ul><ul><li>MOBILE NETWORKS OPERATORS 3+1/14** </li></ul><ul><li>* SMP operator </li></ul><ul><li>**Total number of registered operators </li></ul>
  3. 3. The Trend of fix and mobile lines MOBILE LINES (SIM) FIX LINES
  4. 4. The trends of Broadband connections
  5. 5. Milestones of the Czech Telecommunications/phase I. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS establishment – 8/1999 Monopoly /voice, data/ Beginning of liberalization/voice / Liberalization <ul><li>12/1991 Association agreement – commitment to disestablish and liberalize </li></ul><ul><li>tlkm. market in harmony with the EU </li></ul><ul><li>1.1.1993 Country separation – the commitment passed on to the new CR </li></ul><ul><li>1993 Separation of state administration and business – Ministry of Economy, </li></ul><ul><li>CTU (regulator), SPT Telecom, Czech Radiokomunikace, Czech Post </li></ul><ul><li>Liberalization of terminal tlk m . equipment, instal./servi c e activities </li></ul><ul><li>CATV operators entered the market </li></ul>
  6. 6. Milestones of the Czech Telecommunications/phase II. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. <ul><li>State owned tklm. businesses transformed into joint-stock companies </li></ul><ul><li>1994 Telecomm. State policy formulated – liberalization by the 2000 </li></ul><ul><li>1994 The first pilot licen s e for alternative operator issued </li></ul><ul><li>1994 The Rules for competition in local networks determined </li></ul><ul><li>1995 Foreign investor ent e red the SPT Telecom (Telsource 27%) </li></ul>APVTS establishment – 8/1999 Monopoly / voice , data/ Beginning of liberalization/voice / Liberalization
  7. 7. Milestones of the Czech Telecommunications/phase III. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. <ul><li>1996 Competition enters into mobile networks (T-MOBIL) </li></ul><ul><li>1996 Liberalization of data services </li></ul><ul><li>1996 Start of the Internet, callback, VSAT, establishment of ISPs </li></ul><ul><li>1996 – 99 Massive growth of transport and local networks (SPT Telecom) </li></ul><ul><li>Persist i ng criticism of the monopoly operator–stock price decrease, lib eral. </li></ul><ul><li>1999 Third mobile license issued for T.I.W. Canada (now VODAFONE) </li></ul><ul><li>Genesis of mobile market in the CR approves the efficiency reached by </li></ul><ul><li>competition </li></ul>APVTS establishment – 8/1999 Monopoly /voice, data / Beginning of liberalization/voice / Liberalization
  8. 8. Milestones of the Czech telecommunications/phase IV. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS Establishment – 8/1999 Monopoly /voice, data / Beginning of liberalization/voice / Liberalization <ul><li>1999 Internet telephony liberalized by the CTU </li></ul><ul><li>1999 APVTS established (Association of Public Telecommunications Network Operators ) </li></ul><ul><li>2000 The New Telecommunications Act comes into effect </li></ul><ul><li>2000 The independent regulator (CTU) established according to the Act </li></ul><ul><li>2000 The first nationwide license issued for alternative operator + others </li></ul><ul><li>1.1.2001 Monopoly of the Czech Telecom (SPT T) abolished </li></ul><ul><li>First interconnection agreement signed– but no in harmony with the CTU </li></ul><ul><li>APVTS takes up an important role in liberalization process </li></ul>
  9. 9. Milestones of the Czech telecommunications/phase V. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS Establishment – 8/1999 Monopoly /voice, data/ Beginning of liberalization/voice / Liberalization <ul><li>2001 – 02 Cost based interconnection method LRAIC – adopted by CTU </li></ul><ul><li>1.7.2002 Carrier selection </li></ul><ul><li>1.1.2003 Number Portability in fixed networks </li></ul><ul><li>2002 Discussion on the new Act on Electronic Communication started </li></ul><ul><li>2003 Principles of the LLU determined ( Local Loop Unbundling) </li></ul><ul><li>2004 ADSL wholesale offer available for alternative operators </li></ul><ul><li>1.5.2004 The CR becomes the EU member </li></ul><ul><li>2/2005 Act on Electronic Communication comes into effect </li></ul>07
  10. 10. Milestones of the Czech Telecommunications/phase VI. 1990 92 94 96 98 2000 02 04 06 I. II. III. IV. V. VI. APVTS Establishment – 8/1999 Monopoly /Voice, data / Beginning of liberalization/voice / Liberalization <ul><li>2/2005 The Act on Electronic Communications comes into force </li></ul><ul><li>1.1.2006 Number portability in mobile networks comes into effect </li></ul><ul><li>2006 Relevant Market Analyses </li></ul><ul><li>2006 Revision of the EU Regulatory Framework </li></ul><ul><li>2006 APVTS attacks projects „Internet for Free“ </li></ul><ul><li>2006 APVTS + CAKK filed a complaint to EC/DG COMP </li></ul><ul><li>Projects : Convergence, NGN, Safe Internet </li></ul>07
  11. 11. Networks interconnection - LRAIC <ul><li>Cost model for setting interconnection rates in fixed competitive networks ( long run average incremental cost- LRAIC) adopted for Czech conditions </li></ul><ul><li>Project financed by Association and ČTÚ (180k €) </li></ul><ul><li>Regulator cooperated in the project since its beginning </li></ul><ul><li>External consultant + team of experts from APVTS </li></ul><ul><li>The LRAIC model, developed by APVTS was acknowledged by the Regulator and has been in use since 2002 </li></ul><ul><li>The same model was realized by APVTS for Slovak regulator </li></ul>
  12. 12. Number Portability – CNPAC <ul><li>APVTS, together with the CTU formed an open Forum for NP </li></ul><ul><li>APVTS developed principles, processes, methodology for F-NP </li></ul><ul><li>Forum gave approval to NP documents - National standards </li></ul><ul><li>APVTS developed and implemented the National Reference Database (F-RNPDB), operated by CNPAC s.r.o. (100% APVTS – Czech Number Portability Administrative Centre ) </li></ul><ul><li>Database is utilized by 15 operators of fixed networks </li></ul><ul><li>Number of ported numbers reached by 31.12.2006 : </li></ul><ul><li>2 534 071 </li></ul><ul><li>M obile operators entrust CNPAC with operation of M-RNPDB </li></ul><ul><li>M-NP service active since 1.1.2006 and </li></ul><ul><li>136 410 active SIM cards was ported </li></ul>
  13. 13. Interconnection rates and the FIX – MOBIL models <ul><li>An effort to withdraw barriers hindering calls from mobile to fixed and fixed to mobile networks </li></ul><ul><li>To find a fair cost model for setting interconnection rates </li></ul><ul><li>Former rate of fix –mobile interconnection: app. 6,50 Kč </li></ul><ul><li>(0,23€) before 2002 </li></ul><ul><li>First regulatory step in 2002 fix – mobile : 3,66 Kč/min. </li></ul><ul><li>(0,13€) </li></ul><ul><li>Regulation fix – fix applied to mobile – fix : 0,30 Kč/min. </li></ul><ul><li>(0,01€) </li></ul><ul><li>Initiation of follow-up campaign : 3,19 Kč/min. (0,11€) </li></ul><ul><li>Transparent cost model still does not exist </li></ul><ul><li>Pressure to further decrease the rate has ceased </li></ul>
  14. 14. Local Loop Unbundling - LLU <ul><li>LLU – Local loop availability </li></ul><ul><li>Incumbent strongly objects but realizes the necessity!! It is better to control the process then leave decision to Regulator </li></ul><ul><li>A new LLU project team established </li></ul><ul><li>LLU project team developed „ a model Reference Offer for LLU „ + technical-operation al documentation, services qualification, basic conditions of agreements and processes, price calculations…… </li></ul><ul><li>Czech Telecom issued RUO in September 2003, based on collective agreements </li></ul><ul><li>CTU acknowledged the issued RUO </li></ul>
  15. 15. Grounds for association formation - APVTS <ul><li>APVTS presents common solutions to the state administration </li></ul><ul><li>APVTS becomes a partner of state institutions and the Regulator </li></ul><ul><li>Speeding up the process of finding quality solutions to collective interests </li></ul><ul><li>Speeding up the liberalization process </li></ul><ul><li>Undertaking partial responsibility for the liberalization </li></ul><ul><li>Development of basic documents </li></ul><ul><li>Bringing a costs saving to operators </li></ul><ul><li>Networking ( club ) </li></ul>
  16. 16. Association of Public Telecommunications Network Operators APVTS <ul><li>Our objective </li></ul><ul><ul><li>to support and protect fair and open telecommunications market in the Czech Republic </li></ul></ul><ul><li>Our mission </li></ul><ul><ul><li>Assist and encourage market liberalization and competition </li></ul></ul><ul><ul><li>Assist new market entrants through pro-competitive policies </li></ul></ul><ul><ul><li>Represent the telecommunications operators to key government and regulatory bodies </li></ul></ul><ul><ul><li>Maintain a forum for networking and business development throughout of the Czech Republic </li></ul></ul><ul><ul><li>Continually reflect the dynamic nature of the telecommunications industry </li></ul></ul>
  17. 17. Telco market and its governing in the ČR / 2007 GOVERNMENT MINISTRY OF INFORMATICS CZECH TELECOMMUNICATION OFFICE COMMITTEE + Chairman State policy and strategies Regulatory execution OFFICE FOR ECONOMIC COMPETITION Chairman Minister MV Competition Law INCUMBENT FIX MOBIL OPERATORS <ul><li>TELEFÓNIKA O2 </li></ul><ul><li>TELEFÓNIKA O2 </li></ul><ul><li>T-MOBIL </li></ul><ul><li>VODAFONE </li></ul><ul><li>MOBILCOM -CDMA </li></ul>ALTERNATIVE F. OPERATORS <ul><li>GTS NOVERA </li></ul><ul><li>ČESKÉ RADIOKOMUNIKACE </li></ul><ul><li>CZECH ON LINE </li></ul><ul><li>CD Telematics </li></ul><ul><li>TISCALI, CEZNet, eTEL, net4net </li></ul><ul><li>CONTACTEL * </li></ul><ul><li>TELE2* </li></ul><ul><li>ALIATEL* </li></ul><ul><li>TELENOR* </li></ul><ul><li>NEXTRA* </li></ul><ul><li>other operators …..cca 65 licences </li></ul>CATV OPERATORS ISP <ul><li>UPC </li></ul><ul><li>CARNEVAL* </li></ul><ul><li>other operators…25 </li></ul><ul><li>many providers </li></ul>BROADCASTING Analog , digital / radio, TV, amateur b. PARLIAMENT * This company was sold – takeovered by others
  18. 18. Svatoslav Novák [email_address] [email_address] www.apvts.cz APVTS K Červenému dvoru 25a 130 00 Prague 3, The Czech Republic

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