38 (Development of Broadband Network)” has been approved for its regulation. Within the framework of phase 1 of the project, approximately 1900 km of optical cable routes will be constructed and 165 optical network access points will be installed. Required Actions For the development of transport network, it is necessary to initiate the implementation of Optical Network NAP project’s 2nd phase. It is expected to be launched, depending on the availability of funding provision, and completed until 2018 at the latest. In order to fully realise 2nd phase of the project, the total cost of 65 million LVL is required, of which the amount of state aid was intended to be 55.3 million LVL. The envisaged overall funding for the direction’s “Availability of Services to Create Equal Job Opportunities and Living Conditions” action “Development of Next-Generation Network in Rural Areas”, which is included in the National Development Plan 2014-2020 (NDP 2020) adopted by Latvian Parliament on 20 December 2012, is 40 million LVL, from which 50% will be funding of EU Structural funds and 50% private funding. According to the application of the state aid programme No. SA.33324 (2011/N) “NextGeneration Networks in Rural Areas”, harmonised with the EC in 2011, state aid intensity is: 1. Phase 1 of the project – up to 87.18%; 2. Phase 2 of the project – up to 85%. On 19 June 2013, during the coalition partners’ working group meeting on the issues of the EU Structural Funds and the Cohesion Fund, a decision was made on funding changes for the priorities, action directions and objectives set out in the NDP 2020, namely, the 11 million LVL funding of the EU Structural Funds in 2014-2020 planning period planned for the project “Development of Broadband Infrastructure – the Last Mile Connection Establishment” has been directed to the project “Development of Next-Generation Network in Rural Areas”; thereby, anticipating the 31million LVL support from EU Structural Funds for the project, creating ~85% of total funding. The development of transport network should be linked to changes in the population structure, the territorial distribution of services, capabilities of regional mobility (not only physical) to reach services and jobs, etc. 5.2.2 Last Mile Last Mile in terms of fixed lines is the mile from the last access node to the connection point of end-user’s equipment, in terms of wireless solutions – from operator’s base station to the enduser’s device. An active infrastructure competition already exists in densely populated areas, while in rural areas, respecting the subscriber line construction costs and long payback period, the last mile is provided mainly through wireless broadband technology. Wireless solutions are reasonable for low-density population areas. The most prospective radio frequency spectrum bands for the provision of broadband access services are considered to be the following radio frequency bands: 450-457.5 MHz, 460-467.5 MHz, 880-915 MHz, 925-960 MHz, 1710-1785 MHz, 1805-1880 MHz, 1900-1980 MHz, 2010-2025 MHz, 2110-2170 MHz, 2300-2370 MHz, 2500-2690 MHz, and 3410-3800 MHz. Considering the characteristics of the radio signal distribution, the usage of “lower” radio frequency spectrum bands for the provision information_society_development_guidelines_2014_2020.docx; Information Society Development Guidelines 2014-2020