Cesky Telecom to merge with mobile operator Eurotel

Czech fixed-line operator Cesky Telecom, whose majority owner is Spanish phone giant Telefonica, has announced that it will merge with its wholly owned mobile-telephone business, Eurotel. The merged company to be named Telefonica O2 faces increased competition on the converging Czech telecoms market. T-Mobile, owned by Deutsche Telekom, jousts with Eurotel for the top spot among mobile operators and Vodafone is third, following its acquisition of Oskar Mobile from Canada-based TIW last year.