RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.33
13October 1995
ORGANIZATION(95-3086)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM THE CZECH REPUBLIC
Response toQuestionnaire onBasic Telecommunications
Thefollowing communication iscirculated attherequest oftheCzech Republic to
members oftheNegotiating Group onBasic Telecommunications.
_______________
PartI
Definition andMarket Structure
Definition
1. Theregulatory regime oftheCzech Republic (CR)doesnotdefine basic telecommunications.
Under theActNo.110/1964 Collection ofLaws (Coll.), onTelecommunications, asamended bythe
ActNo.150/1992 Coll., thetermuniform telecommunications network islaiddown. Itcovers:
- transmission lines fortransport ofallkinds ofinformation bymeans of
telecommunication equipment (transmission lines), except forequipment for
unidirectional distribution ofbroadcasting andtelevision programmes bytransmission
lines;
- equipment forsupply oftelephone services;
- equipment forsupply oftelegraph andtelexservices;
- radio transmitter equipment fortransmission ofpublic broadcasting andtelevision
corporations.
Inregulatory practice, basictelecommunications areconsidered aspublic telecommunications
networks, networks ofpublic broadcasting andtelevision transmitters, real-time telephone services,
telegraph andtelex, andservices ofleased circuits.
2. Regulatory regime distinguishes between networks andservices. Licences granted contain
specifications asregards both, networks andservices.
3. SeeReply 1.S/NGBT/W/3/Add.33
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Market Structure
4. Under theActonTelecommunications, theestablishment andoperation oftransmission lines
fallwithin thecompetence oftheState (with theexception ofunidirectional TVcable distribution
systems). Such activities areprovided upon authorization provided bytheState.
Theconstruction andoperation oflong-distance andinternational networks areprovided by
duopoly suppliers -SPTTELECOM andCeskéradiokomunikace (Czech Radiocommunications).
However, theexclusive authorization hasnotbeengranted.
TheStatedecision ontheconstruction andoperation ofbroadcasting andtelevision transmitters
fordistribution ofprogrammes ofpublic laworganizations andforsupply oftelephone services. The
exclusive authorization fortheconstruction andoperation oflong-distance andinternational telephone
services wasgranted, inconformity withthedecision oftheGovernment, totheexisting dominant
supplier -SPTTELECOM -uptotheyear2000. TheStatedecides ontheconstruction andoperation
ofbroadcasting andtelevision transmitters fordistribution ofprogrammes ofpublic laworganizations
andforsupply oftelephone services.
TheEurotelcompanyisexclusivelyauthorizedtosupplymobileradiotelephonicanaloguecellular
networks (NMT 450type) anditsservices. Thelicence wasgranted uptotheyear2010.
TheEurotel company isalsoauthorized tooperate andsupply public datanetworks ofpacket
typeuptotheyear1996.
5. Inconformity withprinciples ofthetelecommunications policy approved bytheGovernment
in1994, theestablishment andoperation oflocalnetworks andproviding thebasictelecommunications
services including voice-services byadditional suppliers willbeallowed onlyonageographically based
limitation.
6. Foreignequityparticipationisgenerallypermitted.Thelimitationofsuchparticipationisdefined
onlyforthedominant operator ofbasictelecommunications infrastructure andforthemonopoly supplier
ofinternational andlongdistance telephone services infixed network (SPT TELECOM). Maximum
totalforeign share ofits"strategic partner" (Telesource) amounts upto27percent.
7. Competition ispermitted subject totheabove mentioned limitations andwiththeexception
of"Postfax" facsimile services.
8. There arenobilateral agreements relating tothesupply ofbasictelecommunications services.
9. TheCzech Republic hasentered intothefollowing multilateral intergovernmental agreements:
ITU, CEPT, INTELSAT, EUTELSAT, INMARSAT andINTERSPUTNIK.
PartII
Competition
A. Sub-sectors
a. Voice telephone services
Competition isnotpermitted forlong-distance andinternational services. Theexclusive
authorization wasgranted toSPTTELECOM uptotheyear2000.S/NGBT/W/3/Add.33
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Inconformity withtelecommunications policy approved bytheGovernment oftheCR,access
offurther suppliers intotheconstruction andoperation oflocal telecommunications networks and
providing services isallowed. These activities areconsidered onlyassupplementary tothenetwork
ofSPTTELECOM. TheState determines rules foraccess tothisnetwork.
b. Packet-switched datatransmission services
(i) Overview
Competition isnotpermitted. Exclusive authorization wasgranted toEurotel company upto
theyear1996.
c. Circuit switched datatransmission services
(i) Overview
There isacompetition between theentities having alicence.
(ii) Modes ofsupply
Commercial presence isrequired.
(iii) Market access
Nolimitation onmarket access. Licence isrequired. Radio-based services aresubject tothe
availability ofradio frequencies.
(iv) National treatment
National treatment isapplied.
(v) Licensing
Requirements forobtaining alicence arelaiddown intheActonTelecommunications and
inotherrelated regulations. Thelicence application should contain information ontheplanned operations
andgeographical coverage, delivery conditions, tariffs, network planandanestimate oninvestments
andturnover. Licence isissued byrelevant stateadministrative authority (seeregulatory issues).
d. Telex services
Competitionisallowed.Withrespecttothelow-profitnatureofthisservicethenaturalmonopoly
isretained bySPTTELECOM.
e. Telegraph services
Competitionisallowed.Withrespecttothelow-profitnatureofthisservicethenaturalmonopoly
isretained bySPTTELECOM.
f. Facsimile services
Competition isallowed withtheexception ofPostfax facsimile services. Seereplies under
(c)(ii)-(v).S/NGBT/W/3/Add.33
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g. Leased circuit services
Leasedcircuitsservicesareconnectedinseparablywiththeinfrastructurenetworksoftransmission
linesinwhich leased circuits arecreated. There isaduopoly inpublic long-distance network, consisting
ofSPTTELECOM andCeskéRadiokomunikace (Czech Radiocommunications).
h. Mobile services
Competitionisnotpermitted.Theexclusiverightforsupplyofpublicmobileanaloguetelephone
services hasbeengranted (seemarket structure). Twoother licences forsupplying "GSM" services
areconsidered.
i. Satellite services
Theutilization ofsatellite connections (especially VSAT) forestablishment ofprivate national
andinternational networks isallowed. Circuits ofsatellite systems aresubject tothesame rulesbeing
inforce fortheestablishment andoperation ofpublic telecommunications networks andleased circuits
services.
B. Categories
Local/long distance/international
1. Local level-includes subscribers access lines, localexchanges andlinesamong localexchanges.
Thelocalnetwork covers usually theareaof15upto20kmindiameter. Thisareaisvery
variable. Thelocalnetwork features fortelephone services uniform numbering anduniform
tariff. Innumbering scheme, thelocalnetworks usefromoneuptothree digits character that
forms inconnection withthelocalnumber socalled national number.
Long distance level-includes transit exchanges, linesmutually connecting local networks,
linesconnecting localnetworks withtransit exchanges andlinesconnecting transit exchanges
eachtootherandinternational exchanges. Theinternational exchanges andinternational circuits
areconsidered tobeapartoflongdistance networks. Theinternational operation includes
itsspecific characteristics.
2.
Wire-based
Radio-based
Responses inthispartshould relate toanyrequirements specifically related toradio-based
elements ofnetworks orservices.
(i)-(iv): Responses arecontained inpartA:Sub-sectors.
(v): Licences must beobtained foruseofelectromagnetic frequencies andare
granted bytheregulatory authority toapplicants forfrequencies tobeused
fortelecommunications services.S/NGBT/W/3/Add.33
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Resale basis
3. Neithercompetitionin,norinternationalresaleofprivateleasedcircuitsispermitted.Acustomer
(leaseholder) mayuseleased circuits onlyforhisownpurpose orfornon-public services. Thesame
principles areapplied forswitched voice capacity.
4. Resale ofprivate leased circuit excess capacity isnotpermitted.
Facilities-based
5. Basic telecommunications maybeprovided andthetelecommunications network maybe
constructed andoperated bysuppliers under licences granted byrelevant stateauthority (regulator).
Special authorization isnecessary fortheconstruction andoperation oftransmission linesof
telecommunications facilities. Thisauthorization maybeobtained bylegalpersons only. Without such
authorization suppliers mayconstruct networks onlyonthebasis ofleased circuits.
Special regime isapplied forconstruction ofnetworks usedexclusively intheareaofdefence,
security, railways andenergy supply.
Public/non-public supply
6. Supplyofpublicandnon-publicservicesispermittedunderalicenceonly.Suppliersofuniversal
telecommunications services maybeonlylegalpersons withspecial authorization.
7. Telephone services must besupplied asuniversal services, available generally tothepublic
under equal conditions onthewhole territory. Theleasing oftelecommunications circuits must be
available under equal conditions tosuppliers oftelecommunications services, tousers fortheirown
purposes andtoproviders ofnon-public networks. Telex, telegraph andpublic dataservices mustalso
begenerally available tothepublic. Supply ofthese services ismandatory.
8. Other basic telecommunications maybesupplied regardless thecondition ofuniversality.
9. Public suppliers mustensure universality ofsuchservices. Other conditions, forexample service
sector development orprice limitations, arestipulated inlicences bytheregulatory authority.
10. There arenorestrictions onorganizing andoffering private networks bytelecommunications
suppliers.
11. No.Publicpay-phonesmayalsobeoperatedbysuppliershavingalicenceforsupplyoftelephone
services inaregion. Public pay-phones areconnected totheirownnetwork. Suppliers mayalsooperate
pay-phones connected totelephone networks ofother operators.S/NGBT/W/3/Add.33
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PartIII
Regulatory Issues
Relations between regulatory andoperational functions
1. Basictelecommunicationsservicesuppliersarenotdirectlyinvolvedinmakingregulatorypolicy
orinenforcement ofregulations. They areconsulted inthepreparatory process establishing and
formulating newrulesandstandards. Thesupreme stateauthority regulating basictelecommunications
istheMinistry ofEconomy (Ministry). TheMinistry formulates andapproves regulations andstandards,
withtheexception ofthoseregulating prices which fallwithin thecompetence oftheMinistry ofFinance.
TheMinistry created, forthepurpose ofstateadministration andregulation oftelecommunications,
Ceskýtelekomunikac níúrad-CTÚ(Czech Telecommunication Office -CTO).
2. TheMinistry isalsoresponsible forformulation ofstandards. Theexecutive bodyfortechnical
normalization, metrology andtesting istheCzech Office forStandards, Metrology andTesting (ÚNMZ
Office) which approves theCzech National Standards (CSN).TheÚNMZ Office governs theCzech
Standardization Institute (CSNI), theCzech Metrologic Institute (CMI), theCzech Institute for
Accreditation (CIA),andtheTestcom Prague (further seeIII.8.).
TheCzech Standardization Institute governs preparation andcomposition oftechnical
standardization plans, actsasordering party ofindividual standardization schemes, issues approved
Czech Standards, keeps registration listofapproved Czech Standards (CSN)andestablishes the
Commission forTechnical Standardization (TNK). Itensures fulfilment ofobligations originating from
international agreements andmembership ininternational organizations.
Czech Metrologic Institute ensures professional andexecutive activity ofthestatemetrology
inthescope determined bytheActNo.505/1990 Coll., onMetrology.
Czech Institute forAccreditation ensures theaccreditation under theActNo.505/1990 Coll.
TESTCOM (Technical Centre ofTelecommunications andPosts) isincharge oftechnical
standardization insectors oftelecommunications andposts.
3. There isonlyonelevel(national level) ofgovernment regulating basic telecommunications.
Theprocedures andrulesforsettlement ofdisputes among telecommunications suppliers and
users oftelecommunications services arelaiddown intheActNo.71/1967 Coll., onAdministrative
Procedures. Decisions adopted bytherespective stateadministration authority (CTÚ)maybereviewed
bytheMinister forEconomy.
Frequency allotment orassignment
4. Theallotment offrequency bands iscarried outbythestanding Interdepartmental Frequency
Commission (MKK), thepermanent members ofwhich areCTO, theMinistry ofDefence, theMinistry
ofInterior, andtheSecurity Information Service. TheRadiocommunication Order determines the
allotmentofradiofrequencies.Concessions(licences)forfrequencies,apartfromthoseforarmy,security
andemergency purposes, aregranted onthefirst-come-first-served basis andaccording tospectral
efficiency ofthesystem forwhich frequency assignment isapplied (spectrum saving).
5. National treatment isapplied toallsuppliers ofradiocommunications services.S/NGBT/W/3/Add.33
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Numbering andidentification codes
6. TheNumbering Planisgenerally binding regulation. According toit,therightofcreation and
assignment ofidentification codes fortheoperation inpublic telecommunications networks isreserved
exclusively totheMinistry ofEconomy.
Inconformity withrecommendations ofITU, thefollowing elements aredetermined bythe
Plan:
- identification codes oftelephone areas;
- numbering ofservice stages including emergency calls;
- addresses oftransits among thetelecommunications networks;
- systemic rules fornumbering structures (length ofnumbers, changing characters,
meaning ofsome reserved numbering groups).
7. Yes.
Standards, typeapproval andequipment attachment
8. There aretwotypes oftechnical standards -state standards (CSN) andsectoral
telecommunications technical standards (TNT).
TheActNo.632/1992 Coll., ontheCzechoslovak Technical Standards extended validity of
standards approved before 15May1991 upto31December 1994. Itisexpected thatafterthisdate
thestatestandards (CSN)willnotbe,inprinciple, mandatory. Standards would beagain mandatory
onlyunder thelegalrules andregulations issued bystateadministrative authorities.
Sectoral standards TNT/TNP arenot,inprinciple, mandatory unless theyaredesignated as
mandatory ontherequest ofsocalled non-negligible participants (state administration authorities).
Therespective authorities undertake allnecessary steps aiming attechnical harmonization of
theCzech standards withtheinternational standards andspecifically those ofEU(ISO, IEC,EN,ETSI,
NET).
9. Development ofnewstandards orreview oftheexisting onesissubject topublic review upon
announcement oftheCzech Standardization Institute (CSNI)published intheOfficial Journal ofÚNMZ.
Foreachround ofpublic enquiry (PE), anannouncement ofpublic discussion ontheEuropean
Telecommunication Standards (ETSI) includes thefollowing instructions:
- natural persons, nationals oftheCRandlegalpersons having theirseatintheCRmay,
induecourse, submit comments onCSNETSstandards 'proposals toTESTCOM,
- proposals ofCSNETSStandards aresubmitted inEnglish,
- ETSI standards 'proposals areavailable intheCSNI,Prague.
Foreign persons mayparticipate onstandards formulation through theirrepresentation offices
andother forms ofcommercial presence intheCR.S/NGBT/W/3/Add.33
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10. Alltelecommunications equipment connected directly orindirectly totheuniversal
telecommunications network (public telecommunications network), andallradio equipment operated
intheCRaresubject totypeapproval. Self-certification isnotallowed. TheGovernment oftheCR
hasnotconcluded anyagreement regarding mutual recognition ofthetelecommunications equipments.
11. SeeReply 10.
12. Connection issubject tolicence conditions provided thatsuppliers needexchanges forsupplying
services.
13. Terminal market iscompletely free(subject totypeapproval) andcustomer-supplied terminal
maybeusedwithout restrictions.
Interconnection
14. Implementing regulations arestillunder preparation. Under theexisting practice, suppliers
areobliged toconclude anagreement oninterconnection. Should suchagreement failadecision ismade
bytheregulatory authority.
15. Provisions requiring network-based suppliers toprovide interconnection forother basic
telecommunications network without anydiscrimination shallbeincluded indecrees implementing the
ActonTelecommunications.
16. Yes,provided thatfixed datacircuits areusedasconnection circuits topublic datanetworks.
17. Rules concerning thepricing ofinterconnection areunder preparation. Theinterconnection
feesmust becost-oriented. Thefirstsuchagreement, between SPTTELECOM andlocaloperator,
hasbeenconcluded.
Competitive safeguards
18. Provisions preventing unfair competition arecontained intheCommercial Code (ActNo.
513/1991 Coll.). Unfair competition isdefined asanyactofcompetition contrary tofairpractices.
These provisions areapplied onanon-discriminatory basis. Foreign firms mayalsoclaim theirrights
resulting from theinternational agreements signed bytheCR.
19. TheamendedActNo.63/1991Coll.OnProtectionofEconomicCompetitiondefines"dominant
competitor" asanentity which isnotexposed tosubstantial competition andwhich, during theperiod
ofcalendar year,effects minimum 30percentofdeliveries ofidentical, comparable orinterchangeable
goods (services).
SPTTELECOM isadominant supplier oftelephone services andfurther mandatory services.
Ceskéradiokomunikace (Czech Radiocommunications) isthedominant supplier ofpublic broadcasting
andleased lineservices. Eurotel company isthedominant supplier ofpublic dataservices andmobile
telephone services.
20. TheActonSafeguardofBusinessCompetitiondeterminesthatallagreementsamongcompetitors,
decisions oftheassociation ofentrepreneurs andcompetitors acting inmutual conformity thatlead
ormayleadtoimpairment ofbusiness competition onthemarket ofgoods (products andservices,
including telecommunications services) areforbidden andinvalid, unless provided otherwise orthe
Ministry foreconomic competition grants anexception.S/NGBT/W/3/Add.33
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21. No.
Pricing-related measures
22. Thegovernment establishes prices forsome basic telecommunications: telephone services,
telegraph andteleprinter services andleased circuits. Prices ofother services arefixed byrelevant
service suppliers without intervention ofthegovernment orgovernmental agencies.
23. Thetariffs arepublished aftertheirapproval bytherelevant stateadministration authority.
Thegovernmental authorities monitor theprocess ofcost-accounting intelecommunications
companies.
24. Prices ortariffs aredetermined forcustomers onanon-discriminatory basis.
25. Suppliers intheareaofnon-regulated tariffs arenotinvolved.
26. Atpresent, prices ortariffs ofbasic telecommunications arebased ontariffs established under
theprevious command economy. Their mutual relations arenotcost-based andtakeintoaccount the
social aspects. Governmental authorities areintheprocess ofestablishing costoriented prices.
27. No.
Rights ofwayfortheconstruction ofinfrastructure
28. Suppliers ofbasic telecommunications having special authorization (licence) granted bythe
stateregulatory authority maybuild upandoperate theirownfacility necessary tothesupply ofsuch
services.
29. No.
Newtelecommunications services
30. Newtelecommunications services aresupplied under licence.
31. Thestatus ofnewservices isdefined inalicence granted bytheregulatory authority.