Czech NCA Launches Sector Inquiry Into Mobile Telecommunications Services

The Czech Office for the Protection of Competition (“Office”) has launched a sector inquiry into mobile telecommunications services provided to households in the Czech Republic. The inquiry reflects renewed scrutiny of competitive conditions in a market often criticised for limited price transparency and the continuing dominance of the three major mobile network operators.

Purpose and Scope of the Inquiry

The Office initiated the inquiry following a preliminary analysis developed in cooperation with the Czech Telecommunications Office (“CTO”). Their initial findings suggest that current competitive dynamics, particularly interactions between mobile network operators and the steadily weakening position of independent mobile virtual network operators, warrant further investigation.

Covering the period of 1 January 2018 to 31 October 2025, the inquiry will focus on the pricing of mobile voice, SMS, and data services, bundling practices (including combinations of mobile services with fixed internet, TV or other telecom services), and non-public offers, such as retention deals and individually negotiated pricing. The aim is to assess whether these practices may restrict consumer choice or weaken competitive pressure in the market.

Insights From the Preliminary Analysis

The Office and the CTO carried out demand modelling using price, cross-price and income elasticities, revealing several findings that motivated the launch of the inquiry.

The analysis pointed to potentially narrower market definitions than previously assumed. The results suggest that households and corporate customers may constitute distinct relevant markets, with similar distinctions found between voice/SMS and mobile data services. 

The modeling further revealed a relatively inelastic demand across the sector. Where consumers are not highly responsive to price changes, the competitive constraints on operators may be reduced, thereby creating incentives for higher pricing strategies. Concerning pricing practices, the analysis uncovered extensive reliance on non-public pricing mechanisms, with average revenue per user consistently falling below published list prices. A CTO-commissioned consumer survey conducted in 2023 confirmed that many customers obtain materially better terms only through active negotiation, thereby limiting overall price transparency in the market.

Regulatory Concerns and Focus Areas

In the past, the Office conducted a sector inquiry into retention offers and found no evidence of prohibited coordination. Based on the implications resulting from the analysis, the new inquiry shall revisit these issues considering the evolving market conditions and pricing strategies. Throughout the process, the Office will be supported by the CTO, providing technical analysis and market expertise.

Close examination will be carried out with respect to the concealment of actual market prices through non-public or highly personalized offers, as well as lock-in effects arising from bundling mobile services within broader ecosystems, which may deter customers from switching providers.

Implications for Market Participants

Operators can anticipate information requests covering pricing structures, discounting practices, bundling strategies and customer retention mechanisms. The Office may also revisit market definitions, which, if narrowed, would carry significant implications for assessments of market power.  

The Office’s press report regarding the sector inquiry can be found here and the demand modeling analysis here (both in Czech only).

If you need more information or further guidance in this area, please contact Vojtěch Chloupek, Kristýna Vojtěchovská, or Matej Šinkovic.  

VISIT OUR COMPETITION LAW HOMEPAGE