The Office for the Protection of Competition (ÚOHS) has initiated a comprehensive sector inquiry into the provision of mobile telecommunications services to households in the Czech Republic. The inquiry, launched following an initial joint analysis with the Czech Telecommunication Office (Český telekomunikační úřad, ČTÚ), aims to examine the functioning of competition in markets where the market share of key mobile network operators continues to grow, while the role of independent virtual operators is diminishing.
The inquiry will focus on mobile telecommunications services provided to households—including calls, SMS, and mobile data—and will assess pricing conditions, bundling practices, and the role of non-public (off-list) offers made by mobile operators. The investigation will cover the period from early 2018 to 31 October 2025.
Findings from the Joint Economic Analysis
The decision to launch the inquiry follows a detailed analytical study conducted jointly by ÚOHS and ČTÚ. This study examined the functioning of competition between mobile operators using econometric models of demand systems and estimated price, cross, and income elasticities. The findings indicated that further refinement in the definition of relevant markets is necessary, as household and corporate segments, as well as various mobile services (calls, SMS, and data), likely do not constitute a single market.
The analysis also revealed that operators may face relatively inelastic demand, creating potential incentives to raise prices. In addition, unexpected substitution and complementary relationships between certain operators suggest asymmetries in market power. The study further showed that average monthly revenues per active SIM card (ARPU) fall below operators’ listed prices, implying that non-public pricing plays a significant role in market outcomes—a finding supported by a 2023 consumer survey conducted for ČTÚ by IstroAnalytica Advisory.
Renewed Focus on Pricing and Lock-In Practices
This is not the first time ÚOHS has scrutinized the Czech mobile sector. A previous sectoral inquiry into potential collusion over retention offers found no evidence of tacit coordination, citing the diversity of retention offers as a sign of active competition. The new inquiry will reassess whether those conclusions still hold in light of recent developments in market structure and pricing behavior.
“Practices such as hiding real market prices through retention offers or locking consumers into an operator’s ecosystem via bundled services can limit consumer choice and reduce competitive pressure,” explained Petr Mlsna, Chairman of the ÚOHS. “In addition to examining non-price offers, we intend to analyze the effects of potential lock-in mechanisms that could discourage consumers from switching providers.”
Marek Ebert, Chairman of the ČTÚ Council, welcomed the investigation, emphasizing ongoing cooperation between the two authorities: “Although the mobile markets are no longer subject to direct regulation, we continuously monitor operators’ pricing strategies. The findings of this inquiry will provide valuable input for our forthcoming assessment of the wholesale mobile market.”