Telecommunications are nowadays vital part of every developed economy. Goal of this thesis is to analyze development of telecommunication in Czech Republic since the nineties of twenty century. Special attention is paid to the role of state in this process and effects of its behavior on forming and development of Czech telecommunication market. State behavior is mostly the topic of the first part of thesis. This part of thesis is divided into time period in which the most significant state interventions are analyzed in context with Czech telecommunication market development. Second part of thesis is focused on comparison of telecommunications market development in Western Europe and Czech Republic. Focus is specifically on differences and parallels in telecommunications development and their effect on current state of telecommunications market in specific countries. Last part of thesis analysis future development in telecommunications in Czech Republic and Europe in roughly five years horizon with focus on technology, services and regulation