Broadband Investment (the “Guide for Investment)34, prepared by the EC, which contains
relevant investment models based on public data about projects from all over Europe. In this
material the indicated investment models present a wide range of possibilities for combining
public and private investments. Each model is applicable under different circumstances
depending on the scope of the required infrastructure, the specific objectives, according to
the type of Managing Authority, the level of risk of the individual participating parties etc. The
indicated material recommends the following five investment models.
Bottom-up Model – this is based on an initiative by the local community and includes a group
of end users who are organised into a commonly owned and democratically controlled group
and are able to oversee the construction and operation of their own local networks.
Private Design, Build and Operate (DBO) Model – this is built around the existence of a
Managing Authority that issues means (often in the form of subsidies/public aid) to the
private sector for the purpose of support during the expansion of their networks. The public
sector does not have any specific role in the ownership or operation of the network, but may
impose obligations determining access to financial resources.
Public Outsourcing Model – within the framework of this model there is a single contract that
covers all aspects of the construction and operation of the network. The main characteristic
of this model is that the network is operated by the private sector, but the public sector
retains the ownership and a certain level of control over the network.
Joint Venture Model – a partnership between the public and private sector is the
arrangement through which the ownership of the network is split between the public and
private sector. The construction and operating obligations are as a rule carried out and
secured by the private sector.
Public Design, Build and Operate Model – in this model, the public sector owns and operates
the network without participation from the private sector. All the aspects of the development
of the network are managed by the public sector, which may operate the whole network or
may provide wholesale access with private entities then offering retail services.
With regard to the situation in the Czech Republic, the Private Design, Build and Operate
Model was selected when drawing up the OP EIC as the most appropriate investment model.
This model should ensure the development of NGAs in specific localities throughout the
whole country, and will also eliminate the state’s risk connected with the construction and
operation of these networks. It will use the already created, institutionally secured
implementation mechanism, and respect the fact that in the Czech Republic there is no
public institution specialised in the planning, construction, development and operation of
electronic communications networks. One advantage of the selected model is the fact that in
connection with the support the state may determine some conditions, e.g. wholesale access
to the supported network.
The updated material from the EC (Guide for Investment) speaks of the following investment
models:
a) Direct investment: the publicly run municipal network model (also known as Public
DBO, though it can include PPP elements),
34
Guide to High-speed Broadband Investment, See
http://ec.europa.eu/newsroom/dae/document.cfm?doc_id=12881
29
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