O2 Czech Republic

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O2 Czech Republic, a.s.
Company typePublic
ISINCZ0009093209
IndustryTelecommunications
Founded2006; 18 years ago (2006) (merger of Český Telecom & Eurotel)
HeadquartersMichle, Prague, Czech Republic
ProductsVoice, Internet access, Mobile communications services & related goods, ICT
RevenueIncreaseKč 37.996 billion (2018)
DecreaseKč 7.108 billion (2018)
DecreaseKč 5.366 billion (2018)
Total assetsKč Increase 36.13 billion (end 2018)[1]
Total equityKč Decrease 15.225 billion (end 2018) [1]
OwnerPPF (branding licensed from Telefónica)
Number of employees
5,381 (end 2018)[1]
SubsidiariesO2 Slovakia; Telefónica Business Solutions; Czech Telecom Austria GmbH; Czech Telecom Germany GmbH
Websitewww.o2.cz
Former Český Telecom logo
Former Český Telecom logo
Former Eurotel logo
Former Eurotel logo

O2 Czech Republic (operating under the O2 brand) is a major integrated operator in the Czech Republic. It is now operating more than six million lines, both fixed and mobile, making it one of the Czech Republic's largest providers of fully converged services. O2 Czech Republic operates a fixed and mobile network including a 3rd generation network, CDMA (for data), UMTS and EDGE, enabling voice, data and video transmission. O2 Czech Republic is also a provider of ICT services.

Previously two companies, fixed-line operator Český Telecom and mobile operator Eurotel, it was acquired by the Spanish company Telefónica in 2005 and merged into a single legal entity and given its present name on 1 July 2006.

In 2013 it was announced that Telefónica would sell its stake in the company to PPF and the company would continue to use the O2 brand for a maximum of four years.[2] In August 2017 the brand license agreement was extended to 2022, with a 5 year extension to 2027 available.[3]

History

The company was initially known as SPT Telecom (Správa pošt a telekomunikací, state-owned telecommunications company), and used to have a monopoly for providing fixed-line services. It was reorganized and renamed Český Telecom (Czech Telecom), after the Velvet Divorce saw Czechoslovakia separate into the Czech Republic and Slovakia in 1993.

Its mobile subsidiary, Eurotel, was founded in 1990 as a joint venture between SPT (51%) and the American joint-venture Atlantic West (between US WEST International, Inc. and Bell Atlantic International Inc.). On launch, it received an exclusive five-year licence to operate a public data network, and a 20-year licence for the 450 MHz band to operate an analogue NMT mobile phone network, and automatically also a right to buy a licence to the future GSM network.

In 2001, it won a license to the third-generation UMTS network. It paid 1 billion korunas immediately and promised to pay an additional 2.5 billion korunas annually. It also agreed to launch the service commercially, at least in Prague, by 1 January 2005. In 2003, it received a one-year extension in exchange for faster payments. In 2005 it was granted another year-long extension due to the granting of a third licence to Vodafone. In the event, UMTS services launched on 1 November 2005. On 1 May 2006, the company launched HSDPA services on top of UMTS services.

PC Card modem for O2's CDMA network with manuals

In 2004 it launched CDMA/1xEV-DO broadband wireless service (data-only) at 450 MHz, leveraging its legacy NMT network.

In 2012, O2 Czech Republic opened its network to virtual operators.[citation needed]

On 1 June 2015, O2 Czech Republic has been separated into two mutually independent companies. O2 is the retail operator with the infrastructure provided by CETIN. The separation includes commercial and managerial leadership and management of both companies, including security, IT and control systems.[4]

Type of service Number of customers (in thousands) at the end of the year
2018 [5] 2017 [5] 2010 2009
Fixed lines 554 654 1,669 1,771
ADSL 708 752 806 725
Pay TV – O2 TV 287 259 129 138
Active mobile users in the Czech Republic 4,992 4,903 4,839 4,945
– postpaid 3,504 3,366 2,864 2,814
– prepaid 1,488 1,537 1,975 2,130
Active mobile users in Slovakia 2,000 [6] 1,903 880 553

Controversial Business Conduct

The controversial business conduct of O2 Czech Republic with its retail and business customers, including anti-competitive practices and other questionable activities, has led to concerns due to its aggressive tactics, resulting in several legal disputes. Among those are:

  • In March 2015, Vodafone Czech Republic sued O2 Czech Republic for abusing its dominant position in the fixed high-speed internet market by charging excessively high wholesale prices, which hindered competition, innovation, and customer choice. The lawsuit sought CZK 385 million in damages for 2011-2014. [7]
  • In July 2016, O2 changed its mobile data tariffs, ending slowed internet after data limits without informing customers about their right to terminate contracts. dTest sued O2 for this violation, seeking to revert the changes and protect consumer rights. [8]
  • In December 2016, the Czech Office for the Protection of Competition fined O2 Czech Republic and Vodafone 99 million CZK for anti-competitive agreements. [9]
  • In July 2019, EU antitrust regulators accused mobile operators Czech Republic and T-Mobile CZ of violating EU antitrust rules through a network sharing agreement. This agreement allegedly restricted competition and innovation, potentially harming consumers, especially in densely populated areas.[10]

References

  1. ^ a b c "Annual Report 2018" (PDF).
  2. ^ Telefónica Agrees the Sale of Telefónica Czech Republic to PPF for 2,467 mln euros Archived 2014-02-20 at the Wayback Machine
  3. ^ "O2 Czech Republic, a. s. - General Presentation" (PDF). O2. August 2017.
  4. ^ "O2 Czech Republic separates into O2 and CETIN - ICT market in CEE & CIS - PMR". www.ceeitandtelecom.com. Retrieved 20 December 2018.
  5. ^ a b 2018 Semi-annual Report, O2, version from Feb 13, 2019
  6. ^ O2 je už 2-miliónový operátor Archived 2018-10-25 at the Wayback Machine
  7. ^ "Vodafone suing O2 Czech Republic for 385 million crowns". March 2015.
  8. ^ "O2's illegal actions harm consumers' rights". July 2016.
  9. ^ "Czech Republic: Anti-competitive agreements in telecoms sector". December 2016.
  10. ^ "EU antitrust regulators accuse Czech mobile operators O2 CZ, T-Mobile CZ of blocking rivals". July 2019.
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