b) Indirect investment: the privately run municipal network model (also known as public
outsourcing, or concession model),
c) Support of community-led initiatives: the Community broadband model,
d) Operator subsidy (also known as gap-funding or private DBO).
In this breakdown, the investment model – subsidies to operators to build a network –
provides the broadest set of benefits for the current situation in the Czech Republic in
relation to the building of access networks, and therefore appears the most appropriate
investment model.
The main advantages stemming from the use of this investment model are:
•
Directing investments into areas that are currently not commercially interesting to
existing potential investors. In this way the amount of private investments into the
building of access networks will also be strengthened,
•
Limiting the level of public aid to the electively necessary amount, while one of the
assessment criteria for investor selection will be the amount of public aid needed,
•
The possibility to regulate the prices of wholesale services at the level of what is
achieved in commercially interesting areas by not including public aid in the
calculation of their costs,
•
Strengthening the competitive environment as networks built partially using public aid
will also have to be equipped to provide wholesale services
•
Transferring risk to the public aid beneficiary, because the state as public aid provider
is not directly involved in the deployment of the networks,
•
A relatively simple contractual arrangement between the beneficiary of the public aid
and the donor, and therefore the possibility of relatively rapid project implementation.
The fact that the state will not receive financial revenues from the project, which could then
be reinvested into the building of future networks, may be considered a disadvantage.
Another reason for selecting the Private Design, Build and Operate Model investment model
is the fact that it will enable a specific investor to be selected for each area of intervention
based on a selection procedure in which the amount of public aid required will be taken into
account. The required subsidy amount will be one of the assessment criteria in the selection
procedure. This will contribute to creating a competitive environment and an optimised use of
public funds.
The investment model was already selected in the process of drawing up the OP EIC and
adopted by Government Resolution of 14 July 2014 No 581. It was approved by the
European Commission’s Decision C(2015) 3039 of 29 April 2015.
Public Outsourcing Model will also be supported, if possible and at the same time in
compliance with the rules and objectives of the subsidy programme. NGA networks will be
built by municipalities, mostly by “overlaying” while building other infrastructure (waterworks,
sewage systems, public lighting, pavements, etc.). This synergy will lead to significant total
cost savings. Municipalities will be the network builders and owners, with network
management provided exclusively by private sector in the vast majority of cases. Thus the
wholesale access to the supported network will be guaranteed.
In future, the use of other investment models as well cannot be excluded.
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