It would be too ambitious to expect one report to answer all these questions. However, development of digital
infrastructure and support for innovation in digital services are becoming even more crucial as priorities for successful
development of national economies. Therefore we certainly have an ambition to identify opportunities for deeply
transformative changes, which 5G may bring or accelerate, and suggest potential policy responses to encourage the
right type of action. Naturally, we have an ambition to exploit some of these opportunities in the Czech Republic, aiming to
make the country an interesting, innovative and perhaps to some degree a unique 5G adoption case.
The Czech Republic has been a prosperous country with long-lasting tradition in innovation, advanced industry, well
developed digital services markets, skilled labour, as well as sizeable investments into research and development (R&D).
Digital transformation is one of the key pillars of the Czech Innovation Strategy for 2019-2030 (The Czech Republic:
The Country for the Future). The country is investing into artificial intelligence (AI) technologies, for example through
its internationally recognised research into AI deployment in natural language processing, manufacturing or safety and
security. Based on the NCSI index the Czech Republic belongs to world leaders in cybersecurity. Development of humancentric AI solutions for Industry 4.0, Smart Cities, e-Health and beyond stays firmly at the heart of the Czech National AI
Strategy approved in 2019.
The Czech telecommunications market may not be perfect from a competitive point of view. However, some of its
players have pioneered strategic and structural solutions, which were later recognised and adopted more widely. This
includes active network sharing between T-Mobile CZ and O2 CZ/Cetin adopted in 2013-14. It is an interesting case from
a competition point of view and perhaps an indication of a broader industry trend, especially when we look at the new
generation of networks. There is a number of reasons to think that the Czech market will remain attractive for pilot cases and
innovative structural solutions in telecoms. One of them is the need of such solutions to retain competitive strengths of the
local manufacturing industries. The time to think about new transformative solutions is now, also because, similarly to many
other countries, the Czech Republic is in process of awarding 5G spectrum.
This report was mandated by the Czech Ministry of Industry and Trade during a period of extensive debates about how
to best design the 5G spectrum auction to achieve two goals: to increase competition in the local mobile market so that
mobile data essentially becomes a cheap commodity, and to incentivize 5G deployment in pursuit of the national 5G
strategy. This report does not assess the Czech 5G spectrum auction specifically. Instead, it is putting 5G deployment into
a broader context, attempting to establish how digital future may look like and how to best assure from a policy point of
view that it we will be beneficial and safe for the citizens and the economy of the Czech Republic and beyond. This report
outlines a number of generic policy recommendations, which may not fully and exactly express the Ministry‘s and the
government‘s current policy positions, and they may not be consistent with the opinions of the independent national
telecom regulator or the industry. That said it was prepared in close cooperation between the Ministry and the author, it
reflects their belief that formation of digital policies should involve a greater variety of industries and stakeholders than
before, and it reflects some of the views expressed during our debates with such stakeholders.
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