Improving Digital Infrastructure - Very High Capacity Network development

The Commission assisted in providing analysis and recommendations to the Czech authorities regarding the enhancement of digital infrastructure, particularly focusing on the development of Very High Capacity Networks (VHCN).

The expected results of the project were more favourable conditions in the Czech Republic for the development of VHCN, and an improved administrative capacity to use financial and non-financial instruments to boost the market development of VHCN. Another expected result was a strengthened capacity of the Czech authorities to preside over the rotating presidency of the Council.

Context

At the onset of the request for support, the Czech Republic’s development of Very High Capacity Networks (VHCN) for telecommunications was below what is considered necessary for the economic development of the country, both in terms of infrastructure, as well as in terms of the large number of relatively small network providers (fragmented market).

The effective connectivity for categories of users was also limited: for citizens in general but also for socio-economic actors such as schools, hospitals and others. These shortfalls became more acute during the Covid-19 crisis in which business, administrations and citizens alike went for a prolonged amount of time on-line and many gaps and inefficiencies became more apparent.

Support delivered

The project provided a comprehensive “As-Is” analysis of the state of the telecommunications market and a future outlook on data processing needs in the Czech Republic.

Subsequently, recommendations were formulated to help address the gaps and to develop a policy toolbox of financial and non-financial incentives and support possibilities to address and ameliorate the current state of play.

Moreover, the project assisted the Czech authorities in identifying the main policy issues in this area to prepare for an effective rotating presidency of the Council, which the Czech Republic assumed in the second semester of 2022. The provider through which the aforementioned support measures were delivered was PwC with the EU contribution set at a maximum of 200,000 euros.

Results achieved

The beneficiary authority reported that the material delivered was used to develop a support scheme and for legislative changes related to the roll out the telecommunication network.

More about the project

You can read the final report here: