The objective for Internet access coverage on the territory of the Czech Republic (in the defined timeframe, under comparable conditions pertaining to price and quality) is to enable 100% of all households to access the Internet, as adduced in chapter 1. The collection of data concerning the level of coverage of the territory of the Czech Republic, both the present-day level and the level planned to achieve within the next three years, was carried out in early 2016. Collected data show that a vast majority of areas (see the map of coverage) do not reach the expected future coverage level of 100%. To indicate localities where it is obvious that a sustainable economic model to provide highspeed Internet services under the conditions which would be normal on the rest of the territory of the Czech Republic, is impossible to set up, a coverage criterion of 50% Internet access options for the given area by the end of 2018 was chosen. At the same time, it was conceived that by then Internet access networks would have been built everywhere where a sustainable economic model can be reasonable expected to function. It is crucial to emphasize that the 50% coverage criterion is far from the desired target situation. It is also necessary to point out that the aforementioned set level of evaluation criterion was later confirmed as justified by the assessment of data collected by mapping, i.e. data concerning investment plans announced by entrepreneurs for the period until the end of 2018. It is obvious that these plans go significantly beyond both the current level of investment and the level of investment made in the last few years (2010-2015), yet these investments are insufficient to increase the Internet access availability in the indicated areas above the set level (50%). This is also confirmed by current trends – according to publicly available information (Czech Statistical Office, Czech Telecommunication Office) on the rising number of end users broken down by individual technologies in last few years. This finding is further confirmed by the typical level of investment into ICT infrastructure in relation to the income for provided services. That the suggested level (50%) of the evaluation criterion is appropriate, can be also supported by the results of a sensitivity analysis showing the dependence between the proportional coverage level of white BSUs and the total amount of the subsidy required, see Tables 6 and 7, a Graphs 11 and 12. With regard to the fact that there are approximately 2.9 million address points in the Czech Republic, it was necessary to ensure the effective processing of the input data, to analyse them, and to perform public consultation to aggregate these data into a specific coherent area including a quantity of address points. The chosen assessment of the coverage with granularity to BSU appears to be - due to their number of around 22,000 - a reasonable compromise enabling the relatively easy processing and assessing of the data, yet earmarks relatively small areas with logical association of address points. Territorial units selected in this way are also supported in the CSO system31. From the above it follows that it is only possible to receive support for the construction of NGAs providing a connection for address points that are not yet covered by NGAs and where there is no plan to construct them in the following three years, and which are also in white BSU territory. Every address point with an implemented or planned NGA is subject to investment protection. The parameter of 50% for colouring an BSU can thus be considered a tool that will enable the effective use of the mapping results, their analysis, and determination of areas of intervention. 31 See https://www.czso.cz/csu/rso/zsj_rso 19

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