Czech government regulatory authority Czech Telecommunication
Office (CTO), decided that Paegas Internet Call, a recently launched Internet telephony service, is unlawful and has banned its service to customers.
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The service was unveiled in October, and is run by Czech GSM operator Radiomobil. It is designed to offer discount international phone calls to mobile phone users. For instance, a call from the Czech Republic to the U.S. costs about 60 % of the standard price provided by Czech Telecom.
Czech Telecom filed a complaint against Radiomobil, citing that under Czech law it has a complete monopoly of long-distance telephone service until January 1, 2001. Radiomobil was found to be in violation of that monopoly agreement by the Czech Telecommunication Office.
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