concerned to a state over and beyond their original state (or a corresponding state); see chapter 4.3.2(a). 6.3 Subsidies In general, it can be stated that the Czech Republic will base its determination of a subsidy programmes in the area of the development of NGAs on the EU Guidelines and Regulation No 651/2014, which in accordance with Articles 107 and 108 of the Treaty declares certain categories of aid as compatible with the internal market. In case of OP EIC, the EU Regulation No 651/2014 includes certain categories of aid in the so-called block exemption, newly including “aid for broadband infrastructures”. Art. 52 of Regulation EU No 651/2014 then determines specific conditions under which public aid for NGAs is compatible with the internal market and exempt from the notification requirement. This involves in particular the following aspects: a) The investment shall be located in areas where there is no infrastructure of the same category (either basic broadband or NGA network) and where no such infrastructure is likely to be developed on commercial terms within three years from the moment of publication of the planned aid measure, which shall also be verified through an open public consultation. b) The aid shall be allocated on the basis of an open, transparent and nondiscriminatory competitive selection process respecting the principle of technology neutrality. c) The network operator shall offer the widest possible active and passive wholesale access, according to Article 2, point 139 of this Regulation, under fair and nondiscriminatory conditions, including “physical” unbundling in the case of NGA networks. Such wholesale access shall be granted for at least seven years and the right of access to ducts or poles shall not be limited in time. In the case of aid for the construction of ducts, the ducts shall be large enough to cater for several cable networks and different network topologies. Specific objective 4.1 of the OP EIC Increase Broadband Internet Access Coverage is also based on these aspects. The main target group is residents and entrepreneurs who do not have the possibility to use high-speed Internet access with a speed of at least 30 Mbit/s. The aid beneficiaries are entities operating in electronic communications (SMEs). The target territory is areas that lack infrastructure meeting parameters NGA in a sufficient scope or quality and where it is unlikely that this infrastructure will be built within three years under commercial conditions from the publication of the planned measures. The allocation for this specific objective is EUR 521 million, or approximately CZK 14 billion. More details are set out in the support programme called “High-Speed Internet” approved by the Government Resolution of 9 February 2015 No 87. To reduce the risk of delays in the deployment of broadband services in connection with planned investment into NGAs, it is possible to apply tools inter alia indicated in point 65 of the EU Guidelines. These tools may be applied during the public consultation for the given areas of intervention before the announcement of OP EIC calls. The evaluation criteria for the selection of applicants will be based on the Methodological Guidelines for Managing Calls, the Assessment and Selection of Projects in the 37

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