4. Analytical part 4.1 Analysis of the state of coverage of the Czech Republic by NGNs It is essential that public funds be spent prudently and that public aid supplements and does not replace investment by market participants. Any public intervention should prevent the emergence of risks of crowding out private investment, negative changes to commercial motivation to invest and ultimately a distortion of competition. An essential condition for demonstrating the suitability of a measure in the form of public aid is detailed mapping and analysis of coverage by NGAs. From the perspective of the development of this strategic document, it is essential to mention the first mapping, within the framework of which the CTO performed - between June and October 2013 - a survey of the penetration of infrastructure for providing high-speed Internet access services in the Czech Republic. The pivotal part of this survey was a questionnaire survey performed from 23 July 2013 to 13 September 2013. The objectives of this survey were in particular to map the level of the existing penetration of the infrastructure in question, including the outlook for its construction over the next three years, and to label territorial units in the Czech Republic as so-called white, grey or black areas, where the colour of the area indicates the number of different infrastructures according to the classification in the EU Guidelines28 - capable of providing high-speed Internet access services, and to indicate whether in a given territorial unit any eventual public aid for the construction of infrastructure is compatible with the internal market, i.e. whether this eventual public aid would undermine the existing competitive environment. A breakdown into so-called basic settlement unit29 (“BSUs”) was selected as the most suitable level of geographical breakdown of the Czech Republic for the purposes of labelling territorial units as white, grey or black areas. This breakdown is used primarily by the CSO, and so there exist suitable maps for a graphical interpretation of the results, and it is also sufficiently detailed to ensure that excessive distortion of reality can be avoided when applying the results to a territorial unit. The results of the mapping for the indicated period, meaning the indicative identification of white, grey and black areas across the whole Czech Republic as well as the individual regions in the form of a table and a map with an accompanying text summary, were submitted by the CTO on 5 December 2013 for public consultation. The CTO thus submitted the new maps together with the accompanying materials on 11 April 2014 to a second round of public consultation. Based on additional data and comments received during the second round of public consultation, the CTO supplemented the indicative maps as well as the related tables. According to the established methodology, the CTO reflected the acquired opinions and comments into the mapping results on 1 July 201430. 9 762 BSUs were thus labelled white from the total number of 22 427, or 43.53%. 5 561 BSUs were labelled grey and the remaining 7 104 BSUs were labelled black. The protection of NGA networks is discussed in chapters 3.3 and 3.4. 28 29 30 The criteria for colour allocation (white, grey or black) to a given BSU were, in principle, identical to those for evaluation of the given BSU in 2016, as they were based on the same EU Guidelines of 2013. Act No 89/1995 Coll, § 2(t), on State statistical service, defines a basic settlement unit as a unit representing a part of municipal territory with unambiguous territorial technical and urbanistic conditions or a catchment territorial grouping of a residential or recreational nature. Detailed results of the mapping in the Czech language are available on the CTO website (http://www.ctu.cz/pruzkum-nga). 17

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