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Information Technologies & Telecommunication

Commercial Specialist responsible for the sector:

Luda Taylor, Luda.Taylor@trade.gov

Reports available to US companies upon request:

Data Protection, Safety & Storage (2011)

E-Commerce: Public Portal (2008)

IT & Telecommunications (2007)

E-Commerce (2007) 

Summary

The market in the Czech Republic is considered open, meaning there are no tariff barriers.  During the last five years, the country made considerable progress in expansion of IT usage and investment. Government purchases and focus on small and medium size businesses are increasing creating opportunities and enabling the market to grow steadily. IT ratios have surpassed the standards of the original members of the EU. In mobile telecommunications, the figure far exceeds the average EU statistics. Considering the Czech Republic is a small country with population of 10.7 million, the number of mobile phones reached 13.3 million at the end of last year. The absorbtion is over one hundred percent. The latest trend in the Czech Republic is to cancel the fixed line at home, and buy another mobile phone instead. Internet infiltration is divided into two categories. There are 34 percent of households and 97 percent of business with Internet access. Internet access became crucial for Czech businesses. Since the introduction of ADSL, the market opened and has progressed still further.

The market is highly competitive with robust U.S and European firms and increasingly competitive Czech firms. The decline of the U.S. dollar makes U.S. companies more competitive vis-à-vis European competitors, though Czech EU membership gives Europeans a slight edge in tariff rates. U.S. companies with niche products and services will continue to find good opportunities. The best market entry strategy continues to be working with a local partner, either an agent or OEM. The Czech Government is a possible partner, but it takes a long time, before a decision is made. During the year 2008, the IT growth in Czech Republic exceeded 16 percent, though this trend is expected to slow down, due to financial situation around the globe.