Eurotel

Eurotel was the trade name used by the first mobile telecommunications networks in Czechoslovakia. It was created in 1990 as two separate legal entities, Eurotel Praha and Eurotel Bratislava, because Czechoslovakia was expected to divide into the Czech Republic and Slovakia. Each company was formed as a joint venture between the state-controlled fixed-line operator SPT Telecom, which held 51 percent, and Atlantic West, B.V., which held the remaining 49 percent. Atlantic West represented two American telecommunications investors, US WEST International and Bell Atlantic International, with the interest divided equally between them. The two Eurotel companies were initially assigned responsibility for developing packet-data networks and mobile telephone services based on the NMT450 analogue cellular standard. Their first calls took place in 1991. Packet-data development was less successful than anticipated, and the relevant network elements were eventually returned to the Czech and Slovak fixed-line operators. Mobile telephony, by contrast, expanded rapidly as demand for cellular access grew during the transition from state socialism to competitive telecommunications markets. Eurotel Praha and Eurotel Bratislava subsequently received GSM licences, allowing them to introduce digital mobile services in the Czech and Slovak markets. Their development required substantial capital investment in radio networks, switching infrastructure, spectrum-related obligations, retail distribution and customer acquisition. The businesses benefited from financing arranged with support from the European Bank for Reconstruction and Development. Eurotel Bratislava later became an early Central European issuer in the international public capital markets when it completed a 175 million euro high-yield bond offering in March 2000. The ownership of the American joint-venture interests changed over time. US WEST's interests passed first to MediaOne and later to AT&T. In the Czech market, Český Telecom eventually acquired Eurotel Praha. In Slovakia, Deutsche Telekom acquired control of Slovak Telecom, through which it controlled Eurotel Bratislava. Eurotel Bratislava was rebranded as T-Mobile Slovakia in May 2005 after Deutsche Telekom's investment in Slovak Telecom. In the Czech Republic, Český Telecom was acquired by Telefónica in 2005. The Eurotel brand ended as the two businesses were integrated into successor telecommunications operations. On March 1, 2006, Český Telecom and Eurotel announced that their operations would be merged into Telefónica O2 Czech Republic, with the combination planned for the middle of that year. The Czech business consequently became part of the O2 operating history in the Czech Republic. The Slovak business followed a separate path under Deutsche Telekom and the T-Mobile Slovakia brand. Eurotel is therefore best understood as a historical telecommunications brand and corporate structure associated with the creation of mobile communications markets in both successor states of Czechoslovakia, rather than as a single continuing international company.

Eurotel emerged from the restructuring and modernization of telecommunications in Czechoslovakia at the end of the 1980s and beginning of the 1990s. Anticipating that the federation might divide into two sovereign states, the parties did not establish one unified company. Instead, they formed Eurotel Praha and Eurotel Bratislava in 1990. Each entity was owned 51 percent by SPT Telecom, the relevant state telecommunications operator, and 49 percent by Atlantic West, B.V. The latter's interest was divided equally between US WEST International and Bell Atlantic International. The companies were intended to introduce both mobile telephone and packet-data services. Their initial technology assignment was NMT450, an analogue cellular standard used in several early mobile networks. The first calls on the Czech and Slovak networks were made in 1991. Packet-data network deployment did not develop at the expected pace, and elements associated with that activity were later ceded back to the Czech and Slovak fixed-line operators. The mobile operations proved more commercially significant and grew quickly as cellular communication moved from a specialized service toward mass-market adoption. Eurotel Praha and Eurotel Bratislava later obtained GSM licences in their respective markets. The transition to GSM gave both businesses access to a more scalable digital platform and supported the expansion of voice, messaging and related mobile services. This growth demanded heavy investment in network equipment, spectrum-related infrastructure, transmission systems, customer distribution and working capital. The companies were initially financed with assistance from the European Bank for Reconstruction and Development, including financing described as the first EBRD financing in either the Czech Republic or Slovakia. The American ownership interests changed as the US telecommunications sector consolidated. US WEST's interests were transferred first to MediaOne and subsequently to AT&T. The Czech and Slovak businesses then moved into different ownership structures. Český Telecom ultimately purchased Eurotel Praha. In Slovakia, Deutsche Telekom acquired a 51 percent shareholding in Slovak Telecom in July 2000, bringing Eurotel Bratislava into the Deutsche Telekom group. Eurotel Bratislava's 175 million euro high-yield bond issue in March 2000 was notable because it made the company one of the early Central European corporate issuers to reach the public capital markets. The funds formed part of a succession of financings used to support rapid expansion in a capital-intensive sector. Brand strategies diverged after the ownership changes. Deutsche Telekom rebranded the Slovak operation T-Mobile Slovakia in May 2005. In the Czech Republic, Český Telecom was acquired by Telefónica in 2005. On March 1, 2006, Český Telecom and Eurotel announced plans to merge their operations into Telefónica O2 Czech Republic, with implementation expected in the middle of that year. This ended the Eurotel Praha brand as an independent operating identity. The Slovak operation continued under Deutsche Telekom's T-Mobile structure and later contributed to the history of Slovak telecommunications under successor brands. Eurotel's historical importance lies in its role as an early mobile operator in both successor states of Czechoslovakia. It connected the introduction of NMT analogue services with the later mass deployment of GSM and helped establish the commercial and financial foundations of mobile telecommunications in the Czech and Slovak markets. Because the name referred to two legally separate businesses and neither continued under the Eurotel brand, the subject is a historical corporate and telecommunications brand rather than a currently active operator.

• 2006

  Eurotel Praha is merged into Telefónica O2 Czech Republic

  [1]Eurotelen.wikipedia.org

  Český Telecom and Eurotel announced the planned combination of their operations into Telefónica O2 Czech Republic.

• 2005

  Slovak Eurotel adopts the T-Mobile Slovakia brand

  [1]Eurotelen.wikipedia.org

  Eurotel Bratislava was rebranded as T-Mobile Slovakia.

• 2000

  Eurotel Bratislava issues a 175 million euro high-yield bond

  [1]Eurotelen.wikipedia.org

  The Slovak business accessed the public capital markets in an early Central European high-yield financing.

• 2000

  Deutsche Telekom takes a majority stake in Slovak Telecom

  [1]Eurotelen.wikipedia.org

  Deutsche Telekom acquired 51 percent of Slovak Telecom, placing Eurotel Bratislava within its Slovak telecommunications interests.

• 1991

  First Eurotel mobile calls

  [1]Eurotelen.wikipedia.org

  The first calls were completed on the Czech and Slovak Eurotel networks using NMT450 technology.

• 1990

  Eurotel Praha and Eurotel Bratislava are established

  [1]Eurotelen.wikipedia.org

  Two legally separate Eurotel joint ventures were founded by SPT Telecom and Atlantic West, B.V. in anticipation of a possible division of Czechoslovakia.

A pioneering national mobile-network operator serving the emerging cellular markets of the Czech Republic and Slovakia during the post-communist transformation of Central European telecommunications.

• Analogue mobile telecommunications · 1991

  NMT450 mobile services

  Eurotel's first mobile offering used the NMT450 analogue cellular standard. The service provided early mobile voice connectivity in the Czech and Slovak markets and represented the companies' initial network deployment after their formation in 1990. The first calls on the two networks took place in 1991.

• Digital mobile telecommunications

  GSM mobile services

  After beginning with NMT450, Eurotel Praha and Eurotel Bratislava were granted GSM licences in the Czech Republic and Slovakia. GSM enabled the businesses to expand digital mobile voice and messaging services and provided a more scalable technical foundation for the rapid growth of cellular usage in both markets.

• Data telecommunications

  Packet-data network services

  Packet-data networks were part of the original responsibilities assigned to the two Eurotel companies. Deployment did not grow as quickly as expected, and elements of the packet-data activity were later returned to the Czech and Slovak fixed-line operators. The offering therefore did not become the principal business associated with the Eurotel brand.

• 2006

  Combine Český Telecom and Eurotel into Telefónica O2 Czech RepublicM&A

  Background

  After Telefónica acquired Český Telecom in 2005, the parent company decided to combine the fixed-line and mobile operations in the Czech Republic.

  Action taken

  Český Telecom and Eurotel announced on March 1, 2006 that their operations would be merged into Telefónica O2 Czech Republic, with completion planned for the middle of 2006.

  Aftermath

  Eurotel Praha ceased to operate as a separate branded business and became part of the Telefónica O2 Czech Republic successor organization.

  Source

• 2005

  Rebrand Eurotel Bratislava as T-Mobile SlovakiaStrategy

  Background

  Following Deutsche Telekom's control of Slovak Telecom, the Slovak mobile business was brought into Deutsche Telekom's international T-Mobile branding system.

  Action taken

  Eurotel Bratislava adopted the T-Mobile Slovakia name in May 2005.

  Aftermath

  The Eurotel name was withdrawn from the Slovak market and the business continued under Deutsche Telekom's T-Mobile brand.

  Source

1. 1Eurotelen.wikipedia.org