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Prague - 2004
Day 5 - May 14

Czech Telecom, the largest provider of telecommunications services in Prague , offers connectivity assurance and state-of-the-art technology. Previously a monopoly provider with a high level of internal inefficiency and antiquated equipment, it faces significant challenges as they make way to a fully liberated market. Most Czechs are mobile users as the mobile industry has a 95% phone penetration compared to 37% penetration with landlines. This company found competitive advantage with pre-paid services made available to lower segments of the market. DSL (dedicated lines) is the only growth opportunity for landlines. To date, only 17,000 customers have installed lines; however, the goal is 300,000 customers. In 2003, a major company transformation began to transition the company to 100% Eurotel ownership. A few of the major lessons learned include:

•  Wall between retail and wholesale channels

•  Relationship between management and regulations

•  Limitations to change flat rates to cellular service due to the unknown number of calls and charges

Czech Telecom provides telecommunications services in practically every city in the Czech Republic . As the market leader they strive to broaden a modern telecommunication infrastructure and its technology, both of which effectively ensure national competitiveness that meet international standards. The full long-term business goals and constantly increasing value of the firm are such that even in the future, it will be a stable and prosperous company.

Caption by Angie
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