Oligopolistic Competition in Selected Market Segment

Telecom market in the current Czech Republic is one of the worlds decisive but also the most profitable sectors of globalized economies. The mobile communications market in the Czech Republic now hosts many operators, however its development determine only three network operators and one market regulator, the Czech Telecommunication Office. Major providers of mobile telephone services in the Czech Republic are TMobile, O2 and Vodafone (94% market share in the Czech Republic). Less important place in the market occupy virtual operators whose market power is relatively small and they are unable to be considerably ahead in terms of oligopolistic competition on the domestic market. Those matters correspond to the model of an oligopolistic market with dominant firm and competitive fringe. In the Czech Republic this competitive fringe consists of two powerful companies and a large group of virtual operators, who, however, make up only 6% of the market. Said (oligopolistic) structure of the mobile communications market in the Czech market thus appears to be stable over time; the position of dominant firm TMobile may possibly be replaced by O2 in the long term