CTU threatens to revoke licences if O2, Vodafone refuse to cut wholesale LTE prices

20 Jan 2017

The Czech Telecommunication Office (Cesky telekomunikacni urad, CTU) has called on mobile network operators (MNOs) O2 and Vodafone to reduce wholesale access prices charged to MVNOs to access their 4G LTE networks, warning that failure to do so could result in them losing frequencies won at auction. The watchdog points out that a condition of the licence awards included assurances from MNOs that wholesale prices for LTE services to virtual operators or third-party operators leasing capacity and data spectrum would be set at a level to allow them to operate profitably. The CTU has suggested a levy of around CZK0.10-CZK0.15 (USD0.004-USD0.006) per 1MB of mobile data, and CZK0.01 for 1MB of fixed data – rates both O2 and Vodafone are accused of exceeding by a considerable margin. The regulator has given the cellcos one month to comply with its request or face the threat of legal proceedings that could ultimately see them losing their frequencies. Reuters says both O2 and Vodafone have so far declined to comment.