Page 99 - SAMENA Trends - August 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

European Commission Objects to Czech Mates’ Network Sharing

The Commission warned operators main operators in the Czech retail mobile instead of leading to greater efficiencies
O2 CZ and T-Mobile CZ, and the Czech market. O2 CZ’s mobile infrastructure and and higher service quality, the network-
telecom infrastructure provider CETIN, wholesale business have been transferred sharing agreement is likely to remove the
that their network-sharing agreement to CETIN, a network infrastructure company incentives for the two mobile operators
limits competition. This is in breach of belonging to the same corporate group. to improve their networks and services
the European Union’s antitrust rules. The network sharing by O2 CZ/CETIN to benefit customers. The Commission
Commissioner Margrethe Vestager, who and T-Mobile CZ started in 2011 and the says its analysis of the situation is in line
oversees competition policy, said in a Commission alleges “has been increasing with the principles applied by the Body
statement, “Operators sharing networks in scope”. Now it covers all mobile of European Regulators for Electronic
generally benefits consumers in terms of technologies (2G, 3G and 4G) and the entire Communications (BEREC) in its common
faster roll out, cost savings and coverage territory of Czechia with the exception position on mobile infrastructure sharing
in rural areas. “However, when there are of Prague (pictured) and Brno, which of 13 June 2019. The Commission opened
signs that co-operative agreements may equates to about 85% of the population. a formal investigation in October 2016. O2
be harmful to consumers, it is our role to The Commission is unhappy because the CZ is a mobile communications subsidiary
investigate [them] and ensure that markets Czech mobile market is concentrated, of the PPF Group, with more than six million
indeed remain competitive. “In the present with only three mobile network operators. lines, both fixed and mobile. T-Mobile CZ
case, we have concerns that the network Further, those doing the network sharing is a mobile communications subsidiary of
sharing agreement between the two major are the two largest, whose networks the Deutsche Telekom group, which has
operators in Czechia reduces competition serve around 75% of the population. On operated in the Czech Republic since 1996.
in the more densely populated areas of the these grounds, pending further enquiry,
country.” O2 CZ and T-Mobile CZ are the the Commission holds the view that

99 AUGUST 2019