Jan - British Chamber of Commerce in the Czech Republic

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Focus on … New rules in the mobile phone industry From 15th January it is possible to change to a different mobile operator without having to change your existing phone number, causing anticipation about increased switching between operators. The good news for the mobile telecoms: only two-thirds of mobile users currently are even aware of the advent of mobile number portability, and all indications are that an overall increase in switching operators is unlikely in the first quarter of this year. �ese findings come from an opinion survey conducted in November by the marketing and opinion research agency Synovate. �e research was conducted by telephone interviews on a representative sample of 300 mobile phone users across the country. All respondents were asked about their mobile phone use, their awareness of the new portability legislation, and how this may affect their future plans. �e changes will significantly facilitate movement between mobile operators. Any ease of movement between suppliers or change in price competition normally results in an increase in the proportion of clients (subscribers) leaving a mobile operator during a year. �is rate of change, referred to as the churn rate, is o�en used as an indicator of client dissatisfaction or mobility and is an important business factor for mobile network operators. Historically, Czechs have not tended to switch operators o�en, with annual ‘churn rates’ (measuring the tendency of Internet and cell-phone subscribers to switch providers) among the lowest in Europe, at 10% or less. �is is partly due to the market pricing structure and partly due to barriers to switching, such as having to take a new mobile number. And thus behavioural loyalty is considerable in the Czech market: according 14-15 to the research, T-Mobile and Eurotel enjoy the longest tenure, with the average user maintaining service with these operators for the past four years. Vodafone lags slightly at an average of three years. But awareness of the imminent change to number portability is far from universal, with only two-thirds of mobile users currently aware of this possibility. And a significant age and gender gap also exists. Awareness among women stands at just 59% compared to 75% of men, while almost half of the under 25 demographic remain unaware of the new law. Notably, there is no difference in intention to switch operator between those who are currently aware of the new legislation and those who are not. Overall, 12% state that they are considering changing operator in the first quarter of the year, which effectively mirrors the current churn rates. However, the impact may well differ for individual operators. Among T-Mobile users interviewed, 15% said they intend to switch within the next quarter, compared to 11% of Eurotel customers and 9% of Vodafone customers. Among those who would consider changing and keeping their number, the majority (80%) say they are highly likely to do this within the next three months. Eurotel INTENTION TO SWITCH OPERATOR WITHIN Q1 2006 F O C U S 1 6 The magazine of the British Chamber of Commerce in the Czech Republic and T-Mobile users are more likely to switch to Vodafone than to the other big operator. Vodafone users are equally likely to switch to either of the other operators. Although reasons for choosing one operator over another are varied, the main motivation to switch operators is price: 56% state explicitly that they are looking to obtain lower prices, whilst a further 19% said they wish to be on the same network as their friends or family (effectively giving them lower prices for those they call most o�en). When asked what their current network could do to convince them to maintain their service, 40% said they could be convinced to stay if their current network offered them better prices and a further 19% may be convinced to stay by offers of more convenient tariffs and conditions. Only 15% say that nothing could keep them with their current operator. Overall then, the order of the day seems to be continuing loyalty to mobile operators despite the introduction of mobile number portability from 15th January, although T-Mobile appears to have the most to lose. Paul Asten BSc MHSc Research Executive paul.asten@synovate.com Current operator: Eurotel Current operator: T-Mobile Current operator: Vodafone Desired operator T-Mobile 4.2% Vodafone 6.8% Desired operator Eurotel 1.7% 11% 15% 9% Vodafone 13.3% AWARENESS OF MOBILE NUMBER PORTABILITY FROM 15TH JANUARY 2006 Males 75% Under 25’s 57% Females 59% 25-44 yr olds 64% Desired operator T-Mobile 4.5% Eurotel 4.5% Over 45’s 76%
Events Round-up Patron’s Dinner On 6th December, the Patrons of the Chamber met with Zdeněk Škromach, the Minister of Labour and Social Affairs. �e Patrons enjoyed speaking with the Minister and two of his colleagues from the ministry over a dinner prepared by skillful chefs of the Hotel Savoy Prague, which hosted the session. During the dynamic debate, the guests discussed many topics such as health and social insurance, improving employers’ and employees’ rights, as well as some topical political and economic issues. 192x136 16.1.2006 17:22 Stránka 1 ADVERTISEMENT A unique experience of charm & luxury A cosy and peaceful atmosphere of the Savoy hotel together with personalized service guarantees success of any event JANUARY & FEBRUARY 2006 CONFERENCE SPECIAL RATE for groups from 6 rooms: 168 EUR per Executive room and night (single occupancy) NEW YEAR'S SPECIAL OFFER Hotel Savoy***** Keplerova 6, 118 00 Praha 1 Tel.: +420 224 302 430, Fax: +420 224 302 128 group@hotel-savoy.cz, www.hotel-savoy.cz The rate includes: accommodation, buffet breakfast or room service breakfast, complimentary minibar in the room, free access to the relax center (sauna, steam-bath, whirlpool and fitness), VAT and full day conference package (meeting room rental - Salon I/II, 2 coffee breaks, one 2-course lunch, OHP, flipchart and screen). Please indicate your request for accommodation and conference as NEW YEAR'S SPECIAL OFFER. Without this reference the rate can not be confirmed. The above offers are on request, apply for new reservations only and might be time limited. BCC – Working for a better business environment
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Page 3 and 4: Board of Directors of the British C
Page 5 and 6: a�ernoon lottery, which included
Page 7 and 8: Introducing New Members Coffeeheave
Page 9 and 10: Personally, I am glad that the gove
Page 11 and 12: Focus on … New Age - IT & Telecom
Page 16 and 17: Events Round-up Starry Night Gala C
Page 18 and 19: Events Round-up Key Tax Issues for
Page 20 and 21: Patron’s Page You’ve Got Mail!
Page 22 and 23: Embassy Latest British Airports Gro
Page 24 and 25: Management Corner The Consulting Ch
Page 26 and 27: Chamber People News Ivana Kolářov
Page 28 and 29: Survey Perceptions of Corruption in
Page 30 and 31: Members of the BCC 30 F O C U S 1 P

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