O2 Czech Republic: A Comprehensive Review

O2 is the biggest provider of telecommunications services in the Czech market, currently providing services via nearly eight million mobile and fixed lines. This makes it one of the leading providers of convergent services in Europe. O2 offers state-of-the-art HSPA+ and LTE technologies for customers using mobile services.

Beyond telecommunications, O2 caters to the most demanding ICT needs, providing housing, hosting and cloud services in data centres that cover a total area of 7,300 square metres. These centres are the first in the Czech Republic and Central Europe to receive TIER III certification. Additionally, with its O2 TV service, is the leading provider of internet television broadcasting in the Czech Republic.

From 2011 to 2021, the number of O2 mobile consumers in Czechia has fluctuated, but generally shows an upward trend. It increased by just over one billion mobile consumers, rising from 4.9 billion in 2011 to over six billion in 2020.

From two entities to one

Originally two separate companies, fixed-line operator Český Telecom and mobile operator Eurotel, O2 was acquired by the Spanish company Telefónica in 2005. The two companies were merged into a single legal entity and renamed O2 on 1 July 2006.

In 2013, Telefónica announced that it would sell its stake in the company to PPF, allowing the company to continue using the O₂ brand for a maximum of four years. In August 2017 the brand license agreement was extended to 2022, with an option for a further 5-year extension until 2027.

About O2 Czech

O2 is the largest operator on the Czech market. It offers voice, internet and data services to customers ranging from households to small and medium-sized companies to large corporations. Always provides the latest technology and is currently building a fifth generation (5G) network, the first company to launch in a real environment.

At the same time,is the leading internet provider for households and businesses, covering 99% of addresses. The fixed connection works best when combined with the O2 Smart Box modem, which was developed in-house by O2

With its O2 TV service, O2 is the largest Internet television broadcasting operator in the Czech Republic. The company has secured several exclusive sports rights, providing its customers with the most attractive sports content available on the Czech market.

The company is a major player in hosting and cloud services, as well as in managed services and ICT. As trends in the telecommunications industry evolve, expanding its focus to include non-traditional telecommunications services. These services mainly include financial services such as device insurance or mobile phone travel insurance.

Leading communications in Czechia and Slovakia

The O2-branded telecommunications operators operating in the Czech Republic and Slovakia are among the Group’s leading assets not only in this segment, but across the wider consumer-market sector. They provide voice, internet, and data services to residential customers, SMEs, corporations, and the government. In both countries, O2 TV stands out as a major player in internet TV broadcasting.

Telecommunications and internet services

In a highly competitive and saturated telecommunications market, O2 Czech Republic stands out by offering the most affordable fixed internet services, a strong mobile network, and exclusive television content.

While mobile telecommunications services are its primary revenue stream, O2’s fixed internet covers 99% of the Czech Republic’s inhabited areas, making it the largest internet provider for both businesses and households. Additionally, O2 Czech Republic is a leading provider of hosting, cloud services, managed services, and ICT in the country.

Cybersecurity and financial services

O2 Czech Republic is also focusing on developing and offering more unconventional telecommunications services, including cybersecurity and financial services, such as device insurance and mobile travel insurance. Virtual operators also provide their services via the O2 CR mobile network.

Unlimited O2 5G data plans and market-leading IPTV Services

 In response to changing market trends, O2 has introduced plans for unlimited data in the 5G network. The O2 Spolu (“O2 Together”) family service packages, which combine telecommunications services with O2 TV, are the best on the market and can be customised to meet customer needs. O2 TV has become the most popular IPTV service in the Czech Republic.

By the end of 2023, there were 770,000 active subscribers, including prepaid TV customers. 2023 was a key year for O2 TV, as it secured exclusive broadcasting rights to the Extraliga, the premier ice hockey league in the Czech Republic, and the Czech First Football League, providing unique content for the next five and six years respectively.

Advanced 5G network and innovative neo+ data plans

O2’s long-term focus on technological development and innovation has led to the continuous expansion of the 5G network, which the Czech Technical University has identified as the fastest in the Czech Republic.

O2 maintains a significant lead over its competitors in measured speeds as it is building a 5G network using entirely new technologies instead of just upgrading older transmitters. O2 customers can experience the best 5G service in the Czech Republic by subscribing to the innovative O2 Neo+ mobile data plans, which offer unlimited speed and capacity.

Future technologies

O2 is also developing artificial intelligence and big data technology through its Dataclair.ai – Artificial Intelligence Centre. O2 is also actively involved in developing smart city infrastructure and autonomous mobility of the future.

O2 Czech Republic continues to lead in all telco segments

The Czech Republic’s telecom market has attracted investment from key regional telcos, including Deutsche Telekom, Telefonica, and Vodafone, as well as from investors such as PPF Group. In recent years, there has been an organisational shift as operators consolidate their assets to achieve economic advantages. O2 Czech Republic leads the telecom market across all segments.

Despite the market strength of O2 Czech Republic, there is effective competition, especially in the mobile sector. In common with developments in other European markets, Czech telcos have become multi-service providers, offering a full range of fixed and mobile services.

The mobile sector is dominated by the three mobile network operators, although the regulator has attempted to introduce a new market player by providing spectrum during the multi-band auction held in November 2020. The auction enabled licensees to expand their 5G networks. This process has also been assisted by the closing down of 3G networks and refarming spectrum for 5G and LTE use.

Financial performance

O2 Czech Republic reported earnings results for the year ending December 31, 2023. For the full year, the company reported sales of CZK 35,299 million compared to CZK 34,465 million a year ago. However, net income declined to CZK 6,088 million, a decrease from CZK 19,603 million reported a year ago.

Disclaimer: This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.