Czech Republic Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• The market sizing estimates reflect the revenue the Czech market vendors generated from various services offered. These services include Voice Services (Wired and Wireless), Data and Messaging Services, OTT, and payTV services.
• The telecom sector in Czech is expanding due to increasing end-user applications and growth in markets like IoT, cloud, data centers, and 5G. The country is also witnessing an increase in internet consumption. Market players are developing new internet plans to fulfill the growing demand for internet services and grab a more significant portion of the market.
• The growing demand for high-speed connectivity services by customers and increasing spending on the deployment of 5G infrastructure positively influence the growth of the Czech telecom market. For instance, according to Ookla, Czechia's median mobile internet speed increased by 17.45 Mbps, representing a 39.2% rise over the twelve months leading up to 2024. This significant improvement highlights the advancements in mobile network infrastructure and service quality. In parallel, Ookla's findings indicate that fixed internet speeds in Czechia experienced a 10.53 Mbps increase, reflecting a 19.9% uptick during the same period. This growth underscores the ongoing enhancements in fixed broadband services within the country.
• The growth in the telecom industry is mainly due to the increasing population with the rising adoption of mobile phones that support 3G, 4G, and 5G services across the country. For instance, the Czech Statistical Office states that over half of Czechs have purchased products online since 2020. By 2023, this figure surged to 72.5%, with a significant portion of internet users in Czechia engaging in online shopping. Notably, online shopping's appeal transcends age and gender, with women edging out men in the online shopping arena. Furthermore, the demographic most active in online purchases is Czechs between the ages of 25 and 34.
• The government plans to develop a network infrastructure that provides high-speed connectivity services for customers. For instance, The National Plan for the Development of Very High Capacity Networks identifies a significant investment gap of CZK 15.3 billion (approximately USD 0.66 billion) required to enhance backhaul and access networks. Given the co-financing rate of 75%, the anticipated public financial support is approximately CZK 11.5 billion. The plan includes comprehensive measures to address network development's supply and demand aspects.
• The ongoing digital disruptions in the Czech telecom industry may hamper the Czech telecom market's growth over the forecast period. With new and advanced technologies, consumer expectations of speed and connectivity are constantly changing, thus forcing telecom operators to invest more in infrastructure, IT, and people to satisfy consumer demands. In addition, large-scale IT transformation in the telecom industry means heavy CAPEX and long lead times, thus negatively impacting the market's growth.

Czech Republic Telecom Market Trends

Increasing 4G Penetration and Transition to 5G

• Affordable rates, expanding 3G and 4G coverage, the advent of 5G shifting customer consumption patterns, the government's initiatives to strengthen Czech's domestic telecom manufacturing capacity, and a favorable regulatory environment contributed to the industry's exponential expansion in recent years.
• While 5G SA deployments in Czech have been trailing other regions, recent launches by O2 Czech Republic, Vodafone Czech Republic, and T-Mobile Czech Republic are growing momentum. Similarly, private 5G deployments are gaining traction in Czech, offering opportunities to create new revenue streams and serve additional enterprise customers.
• For instance, according to GSMA, the share of mobile broadband connections in Czechia, including 3G, 4G, and 5G, increased during the observed period. By 2024, 98.6% of all mobile connections in the country were broadband, utilizing networks from 3G to 5G.
• Furthermore, per the Czech Statistical Office, a higher percentage of Czechs favored connecting to the Internet through Wi-Fi over mobile data in the observed period. Specifically, in 2023, 70% of individuals utilized mobile data, while 76% opted for Wi-Fi on their smartphones.
• Across all age brackets in Czechia, there was a notable surge in cell phone internet usage during the study period. The younger demographics approached near-universal adoption, while a significant portion of those aged 65 and above still lacked cellphone internet access.
• Czechs clearly preferred Wi-Fi over mobile data for internet connectivity during the study period. In 2023, 70% utilized mobile data, while 76% opted for Wi-Fi on their smartphones.

Growth of OTT and PayTV Services

• Over-the-top (OTT) services, such as streaming video, VoIP (Voice over Internet Protocol), and messaging apps, have gained significant popularity in Czech. Telecom operators are adapting to this trend by offering bundled services, partnering with OTT providers, or developing their own OTT offerings to remain competitive in the market.
• International OTT platforms, such as Netflix and Amazon Prime, offer on-demand video services for customers, thus creating new growth opportunities for the Czech OTT services market.
• In the second quarter of 2023, data from the Czech Statistical Office revealed that most of the Czech population preferred YouTube and similar video-sharing platforms for their video content consumption. Specifically, over 40% of the population watched online television services. Additionally, over one-third of the population actively used monthly subscription-based platforms like Netflix and HBO.
• In the second quarter of 2023, data from the Czech Statistical Office revealed that over 64% of Czechs aged 16 to 24 engaged in online video gaming. Of this demographic, nearly 22% opted for paid online games. Notably, the data indicated a trend where older individuals in Czechia participated less frequently in online gaming activities.

Czech Republic Telecom Industry Overview

• June 2024 - e&, formerly known as Etisalat, anticipated completion the acquisition of the telecommunications business from the Czech PPF Group in four countries by the end of this year. This expectation persists despite the European Commission's decision to investigate the deal thoroughly.
• April 2024 - 24i, the expert in video streaming platforms, revealed that Slovak Telekom and T-Mobile Czech Republic, both entities under the Deutsche Telekom (DT) Group, have expanded their collaboration with 24i. This expansion entails introducing fresh value-added content libraries, incorporating synthetic channels, and enhancing the overall user experience on their existing streaming services: T-MobileTV GO, Magio GO, and Digi GO.

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