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    Czech Republic: Market to Return to Revenue Growth in 2018 as LTE Service Adoption Drives Up Mobile Revenue
    (I-BusinessNews.Com, December 29, 2015 ) In 2015, the Czech Republic will be the fourth-largest telecom services market in Central and Eastern Europe after Russia, Poland and Romania, with estimated revenue of $3.5bn (Kc85.7bn), or 1.9% of nominal GDP, a 2.3% decrease in local currency compared with the previous year. This revenue decline is mostly driven by the mobile market as price competition among mobile network operators and between MNOs and MVNOs intensifies and as voice services increasingly become a commodity.

    Pyramid Research forecasts negative service revenue CAGR of -0.1% between 2015 and 2020 in local currency (3.5% CAGR in US dollars due to some currency appreciation compared to the dollar through to 2020 after the strong depreciation occurred in 2015). Telecom service revenue in local currency will decline until 2017 and will increase slightly afterward to Kc85.5bn ($4.2bn) in 2020. The major growth contribution will come from mobile data, pay-TV and fixed broadband thanks to customers switching to fiber, VDSL and LTE networks and purchasing IPTV services within multiplay bundles.

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    Key Findings

    Fixed circuit-switched revenue will fall at a CAGR of -12.7% in local currency in 2015-2020, due to ongoing migration mostly to mobile but also to packet-switched services. Mobile revenue will remain predominant in the Czech Republic, thanks to an increase in mobile data revenue and low adoption of fixed telephony.
    Adoption of 3G technologies is at 59% of the mobile subscription base in 2015; Pyramid Research projects this will decline in the forecast period to 40.7%, due to a gradual switch to 4G. LTE subscriptions will reach 6.3m by year-end 2020, 40.5% of total mobile subscriptions in the Czech Republic. The growth is driven by operator investment in 4G and the increasing demand for fast mobile broadband Internet, bundled with the growing penetration of smartphones.
    The total number of fixed access lines will decline by -1.7% year-over-year to 3.95m at year-end 2015, due to further fixed voice line disconnections. Pyramid Research expects the number of access lines to decrease at a CAGR of 0.8% to 3.8m by year-end 2020.
    The number of fixed broadband lines will grow from 3m in 2015 to 3.35m in 2020, and FTTH/B will account for the largest share of net additions through 2020.


    Czech Republic: Market to Return to Revenue Growth in 2018 as LTE Service Adoption Drives Up Mobile Revenue provides an executive-level overview of the telecommunications market in today, with detailed forecasts of key indicators up to 2020. It delivers deep quantitative and qualitative insight into the Czech telecom market, analyzing key trends, evaluating near-term opportunities and assessing risk factors, based on proprietary data from Pyramid Researchs databases.

    It provides in-depth analysis of the following:

    Czech Republic in a regional context; a comparative review of market size and trends with that of other countries in the Central and Eastern Europe region
    Economic, demographic and political context in Czech Republic
    The regulatory environment and trends; a review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability, and more
    A demand profile; analysis as well as forecasts and historical figures of service revenue from fixed telephony (including VoIP), broadband, mobile voice and data, and pay-TV markets
    The service evolution; a look at the change in the breakdown of overall revenue by fixed/pay-TV and mobile sectors and by voice, data and video in the current year as well as the end of the forecast period
    The competitive landscape; an examination of key trends in competition and service providers performance, revenue market shares and expected moves over the next 18-24 months
    An in-depth sector analysis of fixed telephony and broadband services, mobile voice and data services, and pay-TV services; a quantitative analysis of service adoption trends by technology/platform as well as operator, average revenue per line/subscription and service revenue through the end of the forecast period
    Main opportunities; this section details the near-term opportunities for operators, vendors and investors in the telecommunications and pay-TV markets in the Czech Republic

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    This Country Intelligence Report provides in-depth analysis of current business strategies and future trends of the Czech telecommunications and pay-TV market, service providers and key opportunities based on insights directly from the local market players in a concise format.
    The report offers executives understanding of the factors behind ongoing and upcoming trends in the Czech Republic mobile communications, fixed telephony and broadband markets, including the evolution of service provider market shares, to align product offerings and build proactive growth strategies to meet customers demand.
    The competitive landscape and the major players in the markets are given extra attention, enabling local players or prospective market entrants to gain the insight they need. The broad but detailed perspective will help telecom industry players to succeed in the challenging telecommunications market in the Czech Republic.
    The report is designed for an executive-level audience, boasting presentation quality that allows it to be turned into presentable material immediately.
    The report concludes with an exploration of the opportunities available in the Czech market to operators, vendors and investors.

    Table of Contents

    Executive summary
    Market and competitor overview Regional context
    Economic, demographic and political context
    Regulatory environment
    Demand profile
    Service evolution
    Competitive landscape
    Major market players
    Segment analysis Mobile services
    Fixed services
    Identifying opportunities Overall market opportunities

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