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Boo Taubman is one of many Old Town business owners who cannot get Internet access via cable.
Some need a map to find the Internet


Lack of cable access in urban areas makes connections complicated

By Kal K. Korff
For The Prague Post
(November 13, 2002)


Jakubska street is one of the most frequented by tourists in the city of Prague. It snakes its way from Mala Stupartska behind scenic Tyn church in Old Town, past St. Jakub's church and finally ends at the rear of the Kotva department store.

Despite their historic charm, many of the shops on Jakubska street share a modern-day frustration.

"There's no Internet access via cable in this part of downtown Prague. It's not allowed," says Boo Taubman, owner of Hubbub & Sons, located at Jakubska 8. "Here I am in the middle of the business center and I can't get cable. I have a wholesale business and a retail business. I can't take advantage of e-commerce without paying absurd prices."

Walking outside his shop, Taubman says, "The Czech government has set up this new minister of information, yet they won't let me have cable. I won't say it's a conspiracy, but it's oddly profitable for the phone company, which is owned by the state."

"Here I am in the middle of the business center and I can't get cable."

Boo Taubman,
owner, Hubbub & Sons


Taubman's situation is symptomatic of the fitful progress the Czech Republic is making toward leveling the playing field when it comes to providing competitive Internet access choices for Czech consumers.


The options

While most parts of Prague are not caught up in the crossfire of bureaucracy and privatization, many are. Whether you are cable-deprived or not, it pays to know what the alternatives are.

Assuming you live in an area where it is allowed, by far the most popular high-speed option for consumers is cable. UPC has the most popular package, which costs about 1,500 Kc ($50) per month and includes e-mail. For a one-time fee of 2,000 Kc, UPC will deliver to your home a high-speed cable modem for 24-hour access. The fee is refunded when you cancel the service and return the modem. Web pages load quickly, plus you get the benefit of using the same modem to watch shows on channels such as CNN, BBC, CNBC, MSNBC, the Discovery Channel and MTV.
ONLINE OPTIONS

  • Free dial-up Probably will be phased out soon

  • High-speed cable Reliable, but more expensive and not available everywhere

  • ADSL/DSL High-speed competition for cable, coming soon

  • So far, cable modems have proven to be the most popular, if not practical, but competition is coming. Asymmetric Digital Subscriber Line (ADSL) and Digital Subscriber Line (DSL) modems won't be viable alternatives for consumers in the Czech market until early 2003. Still, they are coming and will be a serious player on the market. On par with their cable rivals, ADSL and DSL modems are just as fast and allow you to talk on the phone while surfing the Web.

    Last May, Cesky Telecom started a pilot test installing ADSL modems into Czech homes but has suspended the program until its relaunch early next year. In another example of the political wars concerning anything involving Cesky Telecom, the company was ordered to make wholesale pricing of its DSL lines available to its competitors. Reluctant to do so, the company has delayed the launch until it is able to comply. By the time Cesky Telecom officially rolls out its ADSL modems, consumers should expect to pay about 1,500 Kc a month.

    Watch for offers in the 1,200 Kc range to emerge from competitors.

    With cable elusive in some places, satellite is an expensive option that many companies and homes are forced to use. Expect to pay at least 2,500 Kc per month for a personal satellite receiver, plus the cost of the dish and descrambler box. Depending on where you live, you might not be allowed to have either a satellite dish or cable TV. Once again, it is best to check.

    Another new alternative is Tele2, which markets a cable-based product called Speedboat that has a T 10/100 standard-based Ethernet connector for connecting your computer. Tele2 takes a different approach to pricing: Its customers pay only for the time they are online and no monthly fee. The company's Web address is www.tele2.cz.


    End of an era

    But the most commonly used method for getting onto the Internet is still the old-fashioned one: dial-up. Volny ( www.volny.cz) is the market leader here, with its free access service. Under this system, customers do not pay while connected to the Internet. Instead, they are charged an access fee to get connected via Cesky Telecom's phone lines. The phone company then pays Volny a small royalty for bringing in each customer. Tiscali is another free access provider, while Nextra charges a nominal monthly fee.

    While many Czechs have flocked to the so-called free Internet model that Volny and others have made popular, soon it may no longer be offered. Cesky Telecom has lobbied hard for changes, and a committee has been formed to devise a new agreement among the major players that will put a halt to free Internet access. This means that Volny or Tiscali customers can expect to see an increase in their monthly usage bills over the next few months, making broadband alternatives such as cable even more attractive -- if you can get it.

    Kal K. Korff may be reached at specialsection@praguepost.com





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