2.2. A substantial reduction of payments for establishing easements for the placement of public communications networks on land lots of state and regional authorities Problem Definition In order to place elements of public communications networks in land plot of another entities, it is generally necessary to establish an easement for the benefit of the developer; with the owner being entitled to a one-off compensation for the establishment of such easement. The necessary costs related to the establishment of the easement consisting in payments to owner will often make up more than 25 % of the total costs for the development of electronic communications network and in some instances, such costs would exceed 50 % of the total costs. It is estimated that the state and the stateestablished organizations only own about 5 to 10% of all land where easements for electronic communications networks are established; payments for the easements for the state and the stateestablished organization account for some CZK 50-70 million per year; largest payments for the establishment of easements are paid to local authorities. At the same time, corruption risk where non-market benefits are sought for the establishment of easements in exchange compensations in legitimate amounts may be involved. Act No 127/2005 Coll., on electronic communications, stipulates that the maximum amount of one-off compensations for the establishment of easements is to be determined in accordance with Act No 151/1997 Coll., on the asset valuation, which lays down a general principle in Section 16 (b) that easements shall be valuated in a revenue-based manner from the annual benefit, taking into account the degree of easement restriction at the fair price, while also stipulating the specifics and more details of this calculation method. This valuation method is inappropriate in some respects for the development of public communications networks, as it does not reflect the public interest in such development. In view of the public interest in the development of public communications networks and long-term positive effects of the implementation of such networks, there is a reasonable legitimate reason to require compensations for the establishment of easements where such easements are established on lands belonging to the state and entities using the property of the state for economic activities, as well as on the land of self-governing territorial units. In this regard, the collection of one-off compensations in many cases operates against the declared public interest thereby reducing the motivation to invest in the development of electronic communications networks, particularly in scarcely populated areas. Proposed Measures Measure A An analysis of an option to set a one-off compensation for easements in the amount that will not significantly financially affect the investments in public communications networks (including, where appropriate, an option to waive one-off compensations for reasons of public interest) in cases of the establishment of easements on the state land, for entities using the state property for economic activities and on land of self-governing territorial units and propose any legislative changes. To analyse and evaluate the option of setting a one-off compensation for easements, an inter-ministerial working group consisting of representatives of the Ministry of Finance, the Ministry of Industry and Trade, the 8