What changes have already been made to Czech telecommunications law?
A new Act on Telecommunications (the "Act") came into force on 1 July 2000. By implementing the Act, Czech legislation is compliant with current EU requirements in this area. The Czech authorities have not framed the Act to reflect the new 2002 EC communications framework package but to reflect the 1999 EC Acquis. The 1999 EC law consists of a series of Directives encompassing, among other things, open network provision (access and interconnection); voice telephony (universal service); and licensing (authorisations). The Act provides conditions for the establishment and operation of telecommunication networks, as well as requirements for the provision of telecommunication services. It puts an end to the exclusive monopoly position of Český Telecom in the inter-city and international commercial telephone market. As described below, the Act sets out new rules for the liberalisation of the telecommunication market.
In particular, the Act includes the following:
- it provides a standard definition of 'Telecommunication Network', 'Public Telecommunication Network', 'Telecommunication Licence' and 'Licence Holder' amongst others
- it establishes the Czech Telecommunications Office (the "CTO"), as an independent state regulatory body (previously a department of the Ministry of Transport and Communications)
- it stipulates the conditions of use of terminal equipment (the approval or recognition of such equipment is within the competence of the CTO)
- it provides the principal regulatory basis for the provision of telecommunication activities (as defined by the Act) such as the establishment and operation of a public telecommunications network and the provision of public telephone services via a fixed or mobile network for which a telecommunication licence is required
- licences are required for the installation and operation of public telecommunication services involving land or mobile telecommunications networks. For other types of telecommunication activities (for example, data services), only general licences are needed
- it defines "universal service" as a minimum set of services which are accessible at an assigned quality to all users throughout the whole of the Czech Republic and defines the conditions of its imposition by the CTO in the public interest
- it stipulates conditions for the lease of telecommunication circuits. The CTO is entitled, in the public interest, to impose an obligation to provide the service of leasing telecommunications circuits to one or more licence holders
- it stipulates the principal obligations of each licence holder and general licence holder, in particular, to undertake its activities in accordance with the conditions set out in the licence and to publish an annual report
- provides conditions on open access to public networks, public telephone services, interconnection of public telephone networks and capacity sharing
- it regulates the "General Licence" issued by the CTO in cases such as the operation of radio transmission equipment and telecommunications services where the law does not require an allocated licence
- it stipulates conditions for the operation of "radio transmitting equipment"
- it regulates "the administration of numbers, names, and addresses of network services"
- it regulates the "provision of public telecommunications services" - the general rights and obligations of providers, subscribers and users of telecommunication services are set out; and
- it regulates "telecommunication secrecy and the protection of personal and intermediary data".
What changes to the Czech telecommunications law come into effect on accession?
No amendments will come into effect following the Czech Republic’s accession. The Czech Parliament is currently not reading any drafts of new telecommunications laws.
What can you do to ensure you comply with the new law and prepare for accession?
Certain steps should be taken in order to comply with the new Czech and EU legislation:
- every holder of a telecommunications licence should perform its telecommunications activities in accordance with the Act and under the conditions set out in the licence
- at the request of the CTO, every holder of a telecommunications licence should provide information necessary for the verification of financial competence, and hence demonstrate the ability to provide the relevant telecommunications activities
- each producer of terminal and radio equipment should introduce on to the market only such equipment which are of a type approved or recognised by the CTO, for example, brand all terminal or radio equipment, their packaging and instructions for use with the approval mark
- every holder of a telecommunications licence that has been given the duty to provide a universal service should keep separate records of expenses and revenues and publish an annual report detailing expenses arising from such services
- every holder of a telecommunications licence that provides telephone services should, for example, keep a current database of all subscribers and provide each subscriber with a free unified telephone directory of subscribers.
Future developments
A new European regulatory framework for the telecommunications sector entered into force on 24 April 2002, and will apply in the current EU Member States from 24 July 2003. The regulatory package consists of the Framework Directive and four Specific Directives. The new package follows the significant liberalisation of the industry within the EU and the convergence of telecommunications, media and information technology services.
The new package aims to move away from the ex ante regulation (i.e. anticipating competition problems that are likely to arise) and complex individual licence obligations to ex post regulation (i.e. responding to competition law problems as they occur) and the use of general authorisations. National regulatory authorities will only intervene where there is a demonstrable restriction on competition.
The Czech Republic will gradually implement this new communications regulatory package following accession.
For further information please contact Hilary McDowell.
