Graph No 9 Relationship between unemployment and penetration of the Internet
population
6.5 Impacts of the selected investment model
The selected investment model (Private Design, Build and Operate Model) described in
chapter 4.4 will affect not only the fulfilment of the state policy, but also - from the perspective
of the impact of this policy and thereby the selected investment model - the relevant part of
the private sector that will participate in the construction of electronic communications
networks in the Czech Republic.
It should be noted that the emphasis that the state places on the development of NGNs,
or networks capable of achieving not only today’s required speeds of 30 Mbit/s or 100 Mbit/s,
but rather preparing the conditions for speeds of one order of magnitude higher, is inter alia
reflected in the increased interest from the private sector in the building of high-speed
networks.
6.5.1 The share of private investment in the building of NGAs
The mapping results presented in chapter 4.1.1 show that in its plans the private sector
declared the intention to cover up to 30% of the total number of BSUs with NGAs. From the
current course of public consultation, one can infer that this interest will continue to grow.
This is documented by the desire of the sector to build as many connections as possible
through its own resources and primarily obtain from the state assistance in the form of the
removal of barriers to construction, which will be the focus of chapters 4.3 and 6.2.
The plans declared by the entrepreneurs active in the sector of electronic communications,
acquired while carrying out the mapping in 2016 and converted into finances, demonstrate
the intention to invest into NGAs at least CZK 58 billion, of which almost CZK 17 billion in
backhaul networks. Due to the absence of concrete data, which are the subject of individual
business plans and therefore are understandably trade secrets, the indicated amount is a
qualified expert estimate for technologies based primarily on optical networks and is
something of a lower limit. Nevertheless, this is still an impressive figure that demonstrates
that these investment plans anticipate a substantial increase in the investment
activities of the private sector in this area.
The business plans will have to adapt to the developing market demands. The annual
collection of the relevant ESD data by the Czech Telecommunication Office will then convert
these visions and plans into coverage maps, leading to a gradual clarification of what market
forces can do and where state intervention is necessary. Before launching each call, an
identification of the intervention areas will be conducted based on the current state of
mapping and a related public consultation will be held.
6.5.2 The share of public aid in the building of NGAs
Due to the fact that the building of high-capacity electronic communications networks is a key
prerequisite for the building not only of a digital economy, but also for the development of the
information society as a whole, the state’s task is to support the construction of NGAs where
this is not economically viable for enterprises.
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