In early August, Czech mobile operators O2 CZ and T-Mobile CZ, as well as Czech telecom infrastructure provider CETIN, were sent the European Commission’s preliminary opinion—formed in the context of an in-depth investigation—that the three companies’ network sharing agreement restricts competition in violation of European competition rules.
O2 CZ and T-Mobile CZ are the two largest operators in the Czech retail mobile telecommunications market. O2 CZ’s mobile infrastructure and wholesale business have been transferred to CETIN, a network infrastructure company that belongs to the same corporate group.
Since its launch in 2011, network sharing cooperation between O2 CZ/CETIN and T-Mobile CZ has continually increased. At present, it covers all mobile technologies (2G, 3G, and 4G) and the entire territory of Czechia with the exception of Prague and Brno, representing 85% of the population.
The Commission notes that the Czech mobile communications market is highly concentrated with only three mobile network operators. Moreover, the parties that share the network serve approximately three-quarters of subscribers.
Based on the common position of the Body of European Regulators for Electronic Communications (BEREC) on mobile infrastructure sharing of June 2019, the European institution has thus reached the preliminary conclusion that the network sharing agreement—rather than leading to efficiency gains and a better quality of service—is likely to remove any incentive for the two mobile operators to improve their services for users.
Consequently, a statement of objections was sent to the three Czech companies, a step that is, nevertheless, without prejudice to the outcome of the in-depth investigation launched in October 2016 (see EUROPE 11654/23). (Original version in French by Mathieu Bion)