Universal service financing under the Act No.127/2005 Coll.

The universal service between 2006 and 2009 was financed from two sources – from the universal service fund and from the state budget. The state budget has been the only source of financing since 2010. The net costs incurred by providing a universal service were covered between 2006 and 2009 from the universal service fund, contributions being provided by all business undertakings, including the providers of the universal service concerned, which provided during the billing period connection and access to the publicly available electronic communications network, a line rental service, an Internet access service or another publicly available data service. A business undertaking whose revenues from the provision of a publicly available telephone service, an Internet access service or another publicly accessible data service totalled less than CZK 10,000,000 in the billing period was not considered a contributing operator.

The amount of payment to the universal service account throughout the years 2006-2009 was set according to the percentage issued for each year by the measure of general nature and according to the level of net costs stipulated by the decision. CTU issued the adjustment notice for the stipulated payment according to the Act No. 337/1992 Coll., on the administration of taxes and fees, as amended, and Act No. 280/2009, the Tax Code. All the payers to the universal service account stipulated by the measures of general nature were parties to the administrative procedure regarding verification of accuracy and completeness of the documents for the calculation of the net costs and stipulating level of the net costs.

CTU has been verifying the net costs submitted every year by the universal service provider according to the Government Decree No. 388/2006 Coll., on net costs of the universal service in the electronic communications, which means in results of the separated evidence of costs and revenues and in O2´s databases. At the same time CTU collects other evidence material necessary for issuing the decision, calculates intangible benefits and decides, whether the net costs represent an unfair burden for the universal service provider.

The loss arising from the services provided to the persons with special social needs according to Section 38 paragraph 4 of the Act No. 127/2005 Coll. in the form of special prices has always been paid from the state budget, i.e. as of the year 2007. CTU approves according to the Government Order No. 109/2008 Coll., on conditions of special pricing of the publicly available telephone service, whether the special prices were offered to the entitled persons and whether the maximum discount level CZK 200 per month for each individual subscriber was met. The duplicated and non-proved items are excluded from the calculations for individual years.

The level of net costs for individual years, both the amount claimed and the amount approved, is also published on the CTU website in the “Open data" section (tab on the homepage) in “Catalogue of open data” under the title of “Universal service”. Data on losses arising from special prices is also published at the same place, divided into claimed amount, approved amount and number of subscribers.

A detailed description of the procedures for all relevant years is available in Czech version only.