RealTime IT News

Czech Telecom Launches B2B Marketplace

Prague, CZECH REPUBLIC -- Czech Telecom's first business transaction through its new B2B horizontal marketplace CenTrade has come to fruition.

Czech B2B e-business will get a significant boost because the new system is backed also by SAP, CommerceOne and Citibank, which supports its credibility.

Czech Telecom declared its CenTrade system open for buyers and sellers, though it plans to use it primarily for its internal purposes.

"The majority of Czech Telecom's purchases will be carried out in this way. In the next month we will start to realize significant cost saving thanks to process improvements, headcount reduction and more transparent market," commented Urs Kamber, executive vice president of Czech Telecom.

"Today, CenTrade facilitated the first transaction on the new platform for its pilot clients. We shall see a number of transactions similar to the one which took place today. The number of buyers and sellers, both large and small, will grow quickly as the benefits are appealing for all parties trading on the marketplace. Others will be carried out using an auction mechanism. Similar transactions will also be performed at vertical marketplaces, based on the CenTrade platform," Mr. Bessel Kok, deputy chief executive officer of Czech Telecom, added.

B2B is becoming increasingly attractive in the Czech Republic. While household usage of Internet is not common, businesses are usually online and willing to utilize the new tool. Among the first, local startup B2B Centrum launched its marketplace for non-production MRO (maintenance, repair and operating) products.

Simultaneously with the start of CenTrade, another local company eMatrix announced its B2B marketplace oriented on computers and IT products. All these efforts could probably form the critical mass.

Czech Telecom is a local incumbent telecommunication operator with dominant position in voice services and with important market share in data transmissions and Internet access. It also partly operates one of three Czech mobile phone networks through its 51 per cent stake in GSM operator EuroTel.