5G regulation and law in the Czech Republic

1. What is the state of 5G deployment in your country?

All mobile network operators (MNOs) have deployed 5G networks focusing on the coverage of the most populated areas and specifically cities. Vodafone covers over 70%, T-Mobile over 20%, and O2 over 15% of the population. Vodafone also covers all stations in the Prague metro, while T-Mobile and O2 cover most of them. Each MNO has a coverage map available at its website.

2. Are telecoms companies monetising 5G investments - or are the services provided to consumers at similar prices to 4G? 

The MNOs provide 5G services within standard services packages at no additional cost. However, they have introduced some new 5G mobile internet services, which are usually differentiated by internet speed.

3. Has 5G been launched for industrial purposes? For which sectors?

Yes. Some entrepreneurs are installing 5G private networks.

Skoda Auto, the largest Czech car manufacturer, in cooperation with Vodafone launched a private 5G network for high-speed wireless data transmissions within production premises. The 5G network is a StandAlone, which is independent both on the radio access network and within the core network, to monitor the movement of manufactured vehicles, transport them autonomously within the premises, and upload control software to them.

Universities in cooperation with MNOs have also launched 5G campus networks for research and testing purposes.

It is worth mentioning that:

  • In January 2020, the government authorised a strategy on Implementation and Development of 5G Networks prepared by the Ministry of Industry and Trade. This focuses on new opportunities for industry, smart cities, smart regions and smart villages, as well as e-health and e-agriculture. The document also emphasises the potential to use 5G for security and rescue services, crisis management and other specific public sector needs;
  • In June 2020, the government introduced a new grant programme for municipalities called “Smart Parks for the Future”, to deploy high-speed internet infrastructure including 5G in industrial zones, while encouraging enterprises to follow digital and climate-friendly practices.

4. What is being done to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies?

In August 2020, there was a public auction of new 5G frequencies. The public auction conditions also regulate access to frequencies in the 3400-3800 MHz band for 5G private networks for industrial use. Entrepreneurs interested in accessing the frequencies for deploying 5G private networks must sign a  contract with O2 or Incrate, and receive authorisation to use the frequencies from the Czech Telecommunication Office (CTO).

5. What public tenders have awarded spectrum licences? 

The 700 MHz and 3400–3600 MHz band auction started on 7 August 2020, and the CTO announced winners on 13 November 2020. The bidders paid more than a combined CZK 5.596bn (EUR 212.6m). O2, T-Mobile and Vodafone acquired the majority of the spectrum licences, with Nordic Telecom and Incrate obtaining smaller shares of the spectrum licences. The auction was divided into two categories – Block A (700 MHz) and Block B (3400-3600 MHz).

5.1 What were the criteria for awarding each of the tenders?

Development criteria

For frequencies in the 700 MHz frequency band, operators must for example:

  • Within three years, ensure 95% coverage of the population in all municipalities considered “white spots”;
  • Within four years, ensure 100% coverage of core transportation corridors, 98% of branch transportation corridors of railway and road corridors sections within the Trans-European Transport Network (TEN-T) in the “Core Network” and “Comprehensive Network”;
  • Within four years, ensure 95% coverage of the centres of cities with more than 50,000 people.

For the frequencies in the 3400-3600 MHz frequency band, the allocation holders must operate a minimum of 15 base stations within three to five years of winning the licence, and 230 base stations within five years, with a minimum of 30 national districts covered.

Criteria for effective use of the acquired radio frequencies:

  • Launching commercial electronic communications services using public communication networks on the allocated radio frequencies, in the 700 MHz frequency band within 18 months, and in the 3400–3600 MHz  band within 24 months of winning a licence;
  • Launching public electronic communications services using the full range of radio frequencies in the 700 MHz frequency band within 24 months, and in the 3400–3600 MHz band within 48 months of winning a licence.   

5.2 What are the conditions of the spectrum licence? 

The frequencies may only be used following individual authorisation by the CTO for each band. According to the CTO, the bidders may also use their frequencies to provide 4G services as long as they meet the 5G development criteria.

5.3 What is the price and how is it calculated?

Auction Block CategoryFrequency BandFrequencies [MHz]Auction BlocksMinimum Price [CZK million/Auction Block]
A1700 MHz paired spectrum703-723 / 758-7781 abstract block 2x10 MHz (reserved for new operators)1 400
A2  2 abstract blocks 2x5 MHz700
A3  1 abstract block 2x10 MHz (coverage of white spots and national roaming)1120
B1  2 abstract blocks 20 MHz (commitment to lease frequencies for industry 4.0)110
B23 400-3 600 MHz unpaired spectrum3400-36008 abstract blocks 20 MHz140

6. Is there a long-term spectrum plan or announcements for future tenders? 

There is a long-term spectrum utilisation plan here (in Czech): https://www.zakonyprolidi.cz/cs/2010-105

No future public auctions have been announced.

7. If 5G specific rules are drafted, what do they say?

There are no 5G-specific rules, apart from the public auction obligations.

8. What focused 5G network or spectrum sharing regulation exists?

There are no known issues in the implementation of 5G projects. There have been no decisions regarding non-compliance with 5G obligations.

9. Are 5G network sharing or spectrum sharing agreements in place? 

There is no focused 5G network sharing or spectrum sharing regulation.

10. What are or will be the rules for granting competitors access to new 5G networks once they are deployed?

There are no 5G network sharing or spectrum sharing agreements in place.

11. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

The August 2020 public auction of the new 5G frequencies also provided national roaming obligations in the 700 MHz band. All MNOs with frequencies in 700 MHz band must provide network capacity to others with frequencies in the 700 MHz or 3400-3800 MHz bands (i.e., to Incrate, PODA and Nordic Telecom 5G) under cost-oriented conditions if they meet development and coverage criteria of their own network. 

The August 2020 public auction of the new 5G frequencies also provided access obligations in the 700 MHz frequency band. All MNOs with frequencies in the 700 MHz band must provide access to their network infrastructure to virtual operators under specified conditions.

12. What comments have been made regarding 5G cyber-security and possible use of Chinese technology, including regulation?

In December 2018, the National Cyber and Information Security Agency issued a directive that included a warning that Huawei Technologies and ZTE Corporation, as well as their subsidiaries, could potentially pose a national threat. This directive is still in effect, and followed by many official agencies and companies.

In September 2020, the second 5G Security Conference in Prague took place in private. Based on a summary written by the National Cyber and Information Security Agency, 5G security will be governed by specific regulations and cooperation based on trust. 

According to the Prague Proposals (May 2019), cyber-security is not a purely technical issue. Safe, secure and resilient infrastructure requires a national strategy, sound policies, a comprehensive legal framework and specialist personnel. Strong cyber-security supports the protection of civil liberties and privacy. In April 2020, the US and Czech Republic signed a joint declaration on 5G technology.

In February 2022, the National Cyber and Information Security Agency issued  Recommendations for Assessing the Credibility of 5G Network Technology Suppliers in the Czech Republic, which sets out strategic, business and technical security criteria that should be taken into account. The guidance is not legally binding.

The National Cyber and Information Security Agency is currently preparing a draft law on how to assess reliability of suppliers of strategically important electronic communications infrastructure including 5G networks.

Portrait ofTomáš Matĕjovský
Tomáš Matĕjovský
Partner
Prague
Portrait ofJan Ježek
Jan Ježek
Senior Associate
Prague