CZECH REPUBLIC

AVAILABLE SERVICES IN CZECH REPUBLIC

Broadband internet access in Czech Republic is provided by multiple carriers and ISPs and is reachable in most areas in the country thanks to a sophisticated market which was developed importantly in the past years. There are significant changes between urban and rural areas as well as it may happen within the capital, as it is difficult to build broadband infrastructure in some old parts of the city. For the variety of regional conditions in the Czech Republic, the government is considering suitable infrastructure that is future-proof in the long term and enables high-speed connection to the internet.

DETAILS

The Internet penetration rate was close to 88% by the end of 2017. The privatisation and modernisation of the Czech telecommunication system got a late start but has been advancing at a regular pace in the last years, almost all exchanges are now digital, and existing copper subscriber systems are enhanced with ADSL equipment. Trunk systems include fiber-optic cable and microwave radio relay. The national strategy aims at reaching broadband access with at least 100 Mbps for 50% of households and enterprises by 2020.

TELECOMS MARKET

Some important mergers and acquisitions have taken place, and competition has kept growing in all sectors since the market was liberalised in January 2001. There are now alternative operators which have gained size and strength after a first period of time where the state regulator was slow in reducing the incumbent’s monopolistic power. These initial issues with privatisation and modernisation of the Czech telecommunication system have been mostly overcome in recent years. The Czech Telecommunication Office exercises state administration in the area of electronic communications, including market regulation, and provide the conditions for appropriate functioning of economic competition in the Czech Republic.

BUSINESS ENVIRONMENT

The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country’s EU accession in 2004. The Czech Republic’s business environment ranks second in east-central Europe. Foreign trade policy, infrastructure and policy towards foreign investment rate well in global and regional comparisons. This small and open economy is also particularly sensitive to changes in its main export markets, particularly in Germany. The main weak point is the tax system, which, although improving, still imposes a high level of social security contributions. Foreign and domestic businesses alike voice concerns about corruption, especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.

LOCAL PROVIDERS

RELEVANT INTERNET EXCHANGE POINTS

NIX.CZ: Czech Republic Neutral Internet Exchange

DATACENTERS IN CZECH REPUBLIC