3.7. Adjustment of fees for the use of radio frequencies in the mobile and fixed service Problem Identification It can be derived from current setting of the calculation of annual fees for the use of radio frequencies that, with an increasing number of frequencies used, the volume of resources of the operators of electronic communication networks paid in the state budget will continue to increase, which could reduce the growing need for investments in such networks. The mobile network operators are of the opinion that should not the discussions regarding the change of the fee policy for frequencies for terrestrial mobile service be started that the relevant amounts would not be sufficient for the planned investments in the new networks when new technologies and frequencies (5G/WTTX etc.) are a launched to maintain international competitiveness in terms of the quality and advancement of such networks. In particular, the deployment and availability of the 5G technology and the extension of the robustness of existing networks can be crucial for future competitiveness of the number of companies and entire sectors of the Czech economy, as well as for the availability of innovative services for the state and end-users alike. A similar problem with the level of fees for the use of radio frequencies is signalled by mobile network operators even with regard to the fixed service, where in sparsely populated areas of the Czech Republic, high-capacity optical infrastructure is either completely missing or its use for the provision of the Internet for end customers is unrealistic for economic reasons. To increase the capacity and robustness of existing networks, it is therefore necessary to strengthen the capabilities of current wireless connections in the fixed service, which are capable of ensuring a high level of Internet connectivity using modern technologies. In rural areas of the Czech Republic, the vast majority of municipalities fall into the category with a population of less than 500 inhabitants, resulting in the low market potential of the operator in the given area due to the small number of connected households. In view of the low economic profitability of network operations in sparsely populated areas, on the one hand, and the state-declared interest in covering such areas with high-quality internet networks, it is necessary to discuss an appropriate incentive specific to the coverage of such peripheral areas. For such a discussion, operators of public radio communications network of mobile and fixed services will prepare a detailed economic assessment, including any potential benefits for the development of new networks and services for users as well as with regard to the reduction of certain fees effective from 1 September 2018, through the amendment to the Government Decree No. 154/2005 Coll. Proposed Measures: To start a discussion on the justified adjustment of coefficients for the fee calculation in Government Decree No. 154/2005 Coll., on the setting of the amount and method of calculation of fees for the use of radio frequencies and numbers, for terrestrial mobile service and fixed service, resulting in the reduction of the burden of operators of electronic communication networks and service providers on such networks. Responsibility Responsible party: Ministry of Industry and Trade Cooperation: Ministry of Finance 20