e) f) g) h) to seek a balance between the optimum size of an area and the costs for building the network, when a large number of small areas increases construction costs per unit yet areas that are too large will restrict competition. ‒ The anticipated average investment demands of a project are approximately CZK 30 million (without VAT) for the absolute share of private investment in the total value of a project. These are average values that arose from discussions with the professional public and that reflect the average value (although it is clear that the market is significantly fragmented into a large number of entities with differing needs). The originally valid and Government-approved programme determines the level of subsidy (and thus also co-financing) at a higher level (amount for a project CZK 1 million to CZK 200 million). The OP EIC Managing Authority will treat areas of intervention individually according to the coverage maps, and will thus always define the individual areas of intervention for a given subsidy project, while this definition of an area of intervention on which the subsidy demands per project will be based will always be subject to public consultation. When determining areas of intervention, the long-term sustainability of the operation of the constructed NGAs will be taken into account. The scope of State aid per area of intervention cannot exceed CZK 200 million without VAT. When determining specific areas of intervention, a suitable solution will be proposed that effectively combines the parameters indicated above. The determined areas of intervention will be subject to public consultation. With regard to how so-called white BSUs are defined and in connection with protection for existing and planned investments, it is understood that costs for the connection of “nonwhite” address points, i.e. with an NGA, if they appear in an area of intervention (see chapter 4.1.1) cannot be included into eligible costs from which the amount of subsidy will be determined. Regional Development Strategy The Regional Development Strategy39 takes into account several indicators (GDP, unemployment, indebtedness per citizen, material need benefits, net migration per 1000 population) and defines 57 economically troubled regions that represent in total 2 621 740 inhabitants - or 24.8% of the inhabitants of the Czech Republic - covering an area of 24.7% of the Czech Republic. In accordance with this strategy, it is possible to give preferential treatment to areas of intervention in the indicated regions during the implementation of the subsidy mechanism of specific objective 4.1 of the OP EIC. To document the appropriateness of the preferential treatment of such areas of intervention, the presented Regional Development Strategy was used and an indicative analysis prepared of the current situation in the regions concerned, in which their current development state is taken into account. The results of this analysis are presented in the following table. Prague Capital City Central Bohemia 39 Number of inhabitants Average gross wage Unemployment (15-64) GDP v PPS per capita 2014/RISY Percentage of inhabitants belonging to the Internet population 10+ CSO 12/2015 CSO 11/2015 CSO 11/2015 EU27=100 NetMonitor 01/2016 1 264 708 1 323 33 343 CZK 25 987 4.20% 173.40 77.17% 5.41% 77.20 64.34% See Government Resolution of 15 May 2013 No 344 40 Assessment of regions without Prague Ranking of regions without Prague worse situation = lower number worse situation = lower ranking not assessed 3.61 not assessed 12

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