Upgrading the Czech Republic's infrastructure, specifically telecommunications and transportation, is important for continued economic growth and development. Although recognized as a priority, the massive nature of these projects will require time and capital. Resources to finance the country's extensive development plans for the telecommunications industry include foreign direct investment as well as major loans provided by the European Bank for Reconstruction and Development (EBRD), European Investment Bank and large local and foreign banks. The Dutch-Swiss consortium Telsource holds a 34.5 percent stake of the Czech telecommunications leader, Cesky Telecom, which is upgrading and expanding the telephone system. Cesky Telecom's last remaining monopoly, over fixed lines, ended in July 2002 with the introduction of carrier choice by dialing a prefix. Cellular phone market penetration is also growing rapidly, with over 8.5 million cellular phone users recorded in December 2002.
 

The infrastructure for e-commerce is slowly improving. There are currently 19 internet service providers, which cover a majority of the Czech Republic. Statistics on homes with internet access vary widely, ranging from five to fifteen percent of the population, but all concur the availability of internet connections through a variety of options is on the rise. The legal infrastructure to support e-commerce, as well as the development of internet banking, will help improve the prospects for e-commerce.

While Internet sales represent a small fraction of the Czech market, they are increasing rapidly, reaching $90 million in 2002. Business-to-business sites, virtually unknown as recently as three years ago, are experiencing geometric growth and are becoming increasingly important and trusted. While most U.S. firms should not place full reliance on web-marketing strategies, web-sites may supplement traditional marketing efforts.