Feature Article

October 03, 2013

Next-Gen Mobile Telephony Services to Hit Czech Republic by November

Following the expiration of the deadline for applications on Monday, Telefonica Czech Republic, T-Mobile, and Vodafone, along with two other telephony service providers, have recently joined forces to provide the Czech Republic with next-generation mobile telephone services by way of radio frequencies. However, though the technology could prove positive for the country, its implementation may face some legal difficulties before its expected mid-November auction.

Previously, bids for an auction regarding a March release escalated to the point of potentially inflating the price of telephony services, which delayed that month’s anticipated release, as the sale of frequencies for high-speed 4G wireless networks was terminated. Still, to push forward, European governments are working toward network roll-outs based on 4G long-term evolution technology to allow speedy mobile broadband access.

While PPF, a Czech investment group under ownership of the “richest man” in the Czech Republic Petr Kellner, will not be joining in the recently announced sale, those planning to participate have already reaped some benefits. Czech Telefonica, which will fall under new ownership and name-change to Revolution Mobile, saw a 3 percent share price growth following the announcement.

However, the auction already anticipates difficulty with conditions set by the regulator, such as, to incumbents’ dismay, allowing space for newcomers. The provision angered Czech Telefonica so much so that the company announced its plan to file a lawsuit with the Prague municipal court in retaliation.

Still, according to a company spokeswoman, the organization will participate in the auction, as will T-Mobile, despite the stipulation leaving existing operators at a disadvantage.

The auction regulator reserved the newcomer space on the 800 and 1800 MHz bands and also announced the expected presence of yet another entrant, Czech group Tasciane.

Though the auction for frequencies will not start until Nov. 11, the regulator also announced that applications opened Tuesday.

Edited by Alisen Downey

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