The mapping presented in chapter 4.1.1 showed that there are such places in the Czech Republic, and the mapping that will be carried out in the coming years will show eventual changes in the specific focus of public aid, while business entities focus in their plans on the almost 30% of BSUs in which there are around 1.2 million permanently occupied dwellings, corresponding to a situation with a predominance of multi-dwelling buildings. Intervention of the State in the form of public aid should - according to the mapping results from the start of 2016 - also apply to 30% of BSUs, however with far less dense development and which are more difficult to serve, and so will apply to around 360,000 permanently occupied dwellings located primarily in single-dwelling buildings. This is based on the priorities of the Government’s Action Plan for the Development of the Digital Market and on a phenomenon of our time, namely the continuously increasing share of work from home, which is also starting to manifest itself in the Czech Republic, it is in the interest of the state to also cover such areas with access networks of the required quality. The performed economic analysis did not take into account the average coverage percentage, which hovers at around 7%, and around 20% if business plans are included, and which was calculated by using the data obtained from mapping. The reason for this is the need to manage a comprehensive network. In the context of the above, it is of course essential to state that public aid serves more or less as an incentive for the private sector as private investment into these areas is also anticipated and should, based on the economic analysis, be at least around CZK 6 billion according to a qualified expert estimate, including investments planned by operators at 13% of the current situation. In addition, business models of competitors that will be able to ensure not only the construction of NGAs, but also their long-term operation, are included. Although the state is not a business entity, in the economic analysis performed subsequently to the mapping it was necessary to consider aspects that occur during the preparation of a business plan, to determine whether funds considered for public support (ESIF) will be sufficient and also whether it is realistic that NGAs built with public aid will be viable, meaning that the enterprises operating such networks will be able to operate them. Besides, calculations were intentionally carried out for Internet access services only, including wholesale access. A minimalistic economic analysis concerning revenues did not take into account the possibility to use other potential business models, including the option to introduce promising electronic communications services. The justification is that it was needed to examine whether the worst case scenario of investment with public aid is viable. A. Analysis input data Therefore, to verify the scope of investment necessary to cover the whole of the Czech Republic with NGAs:   sets of available demographic data were used, including information about the density and structure of settlements together with detailed information about the character of the residential developments; these data were used to calculate an average distance of 2 700 m from a backbone network access point (with limit values of 30 m and 13 km), while the weighted average distance taking into account the number of dwellings in the given BSUs was 1 300 m from a backbone network access point, the individual characteristics for the calculation of the investment demands were set incorporating the information obtained from the analysis of the average investments into FTTH (respectively FTTN) electronic communications networks, within such a 43

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