Ken Research announced recent publication titled “The Czech Republic: Revenue Expected to Grow Moderately Through 2021 Supported by LTE, Fiber, Pay-TV and M2M Growth”, discuss telecom industry present and future analysis. It details fixed and mobile data usage and increase in pay-TV adoption trends. Report has covered telecom market size, major industry trends and competitive landscape of the market. Major players and their stake in the market has also been covered along with regulatory environment, political and demographic analysis.
The Czech Republic is a stable and prosperous market economy closely integrated with the EU. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second half of 2009 and registered weak growth in the next two years. In 2012, however, the economy fell into a recession again, due both to a slump in external demand and to the government’s austerity measures. The auto industry is the largest single industry and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. The Czech Republic has developed as an advanced social market economy that supports a high-income welfare state.
The Czech economy’s transition to greater openness and flexibility has been facilitated by a decade of restructuring and liberalisation. Low tax rates encourage the development of a vibrant private sector. The government has placed a high priority on fiscal discipline and is striving for budgetary balance after years of fiscal deficits. Lingering corruption increases the overall cost of doing business and continued institutional reforms to enhance transparency and keep government spending under control.
The Czech Republic is participating in the European Single Market of the European Union and is therefore a part of the economy of the European Union. Its largest trading partner for both export and import is Germany. As of July 2016, the unemployment rate in the Czech Republic was the lowest in the EU at 4.0%, and the poverty rate is the second lowest.
Total revenue refers to the sum of individual income taxes, business income taxes and other tax revenues a government collects over a given period of time, usually one year. Gross domestic product is the total value of goods and services a nation’s economy produces. Total revenue tends to grow as GDP grows. Conversely, when there is an economic downturn, revenues usually decrease. This becomes important when total revenues are compared to government spending.
The telecom market is expected to generate CAGR growth of 3.4% in next five years. The growth is expected to lead by growth in data revenue. Positive growth in fixed and mobile data usage and increase in pay-TV adoption will further support the market. Telecom service revenue in the Czech Republic is estimated to generate USD 3.4 billion in 2016 and to register CAGR growth of 3.4% during 2016-2021. The growth will be mainly driven by the data (fixed and mobile) and pay-TV segments. O2 and T-Mobile will further drive the country’s telecom market in 2016. Operators are focusing on investing in IoT/M2M initiatives, LTE network expansion and improving broadband speeds to cement their market positions.
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Ankur Gupta, Head Marketing & Communications