Prague - Mobile operators in the Czech Republic have unexpected increased prices of handsets by up to 20 percent, quoting the weakening of the Czech currency in the past months that makes imported good more expensive.

T-Mobile's Jitka Pajurková said selected types of mobile phones now cost more than in February. "This modification is a reaction to the declining exchange rate of the Czech currency, which has recently lost about 15 percent of its value," she said.

The increase by 10-15 percent has affected mainly handsets that are sold by T-Mobile at full prices rather than those sold at discount rates offered to customers with a contract. O2 has adopted the same strategy, increasing prices of mobiles for pay-as-you-go clients by up to 20 percent.

Vodafone is an exception in that it only increase the prices of discounted handsets that come with long-term calling contracts. The hike has been by approximately 5-8 percent.

Imports affected

While six months ago the exchange rate was about CZK 25 per euro, a few days ago the rate attacked CZK 30. While a weakening of the local currency usually benefits exporters, it makes imports less profitable - unless the importer goes up with the price.

Last week Czech gas suppliers also quoted the weak crown as a reason why a planned reduction in household rates will be much milder than expected. While analysts predicted a price cut from April by up to 10 percent, E.ON, RWE Transgas and Pražská plynárenská announced a reduction by an average of 3 percent.