Invitation for negotiations

1. Malopolska Region implements the project called the Malopolska Broadband Network. The goal of the project is to provide opportunities of access to broadband services for residents, public institutions and businesses. In order to achieve the project’s goal, an expansion of regional and local broadband infrastructure is going to be carried out.
2. Currently the region faces the problem of poorly developed broadband infrastructure, which is owned mainly by the incumbent. The broadband market is not developing in a satisfactory pace. In order to stimulate telecom market, it is necessary to develop backbone and distribution (2 mile) networks. As a result internet service providers (ISP) will be able to provide broadband services in new areas without the need of big infrastructure investments.
3. Networks created within the project will be open to all interested telecommunication companies that will provide broadband services directly to end users, ie. people, companies and institutions in Malopolska.
4. The project will contribute significantly to the development of regional telecommunication infrastructure, which is one of the catalysts for economic growth. In the long term the investment will contribute to:
   • creation a number of jobs not only in the ICT sector,
   • better level of education,
   • equal opportunities in access to information,
   • administration streamlining,
   • mobilization of local communities
   As a result the competitive position of Malopolska Region is going to be considerably strengthened.
5. According to a plan:
   • Malopolska Broadband Network will be implemented with the participation of public and / or private partners;
   • the main indicator of the Project is: the ability to access broadband services for 90% of households, and 100% of public institutions and enterprises in Malopolska;
   • the project will be implemented in both white areas under traditional broadband criterion (i.e. 2 Mbps), and white areas under the NGA broadband criterion (if that area is white or gray for traditional broadband).
   • fiber optics will be the main option, but it will be complemented with radio technology
   • project’s value will be below 50 million EUR
   • there will be no individual notification of state aid in the project as the project falls under the regulations of Polish Ministry of Regional Development Regulations on granting aid for investments in telecommunications infrastructure.
6. The project Malopolska Broadband Network is in line with the objectives of the Digital Agenda for Europe. Fiber optic technology used to deploy the Malopolska Broadband Network will allow to offer NGA broadband of 40 Mbit/s, and more than 100 Mbit/s later in the future.
7. The regional broadband network will stimulate the implementation of other projects to deploy local telecommunication networks. The regional broadband network able to offer state of the art throughput and flexible services will serve as a base for local ISP.
8. Series of works related to the preparation of investment were finished hitherto e.g.:
   • broadband infrastructure review/inventory;
   • feasibility study;
   • open tender for the Engineer of the Project;
   • series of studies on legal, organizational and financial aspects of the Project;
   • environmental approval;
   • audit of the project;
    
9. Sources of funding will be both public and private. The contribution of the Malopolska Region will amount to 30 million zlotys (approx. 8 million EUR). The contribution of a private partner, as well as the final version of the project's budget, will be determined in negotiations with private investors.
10. The fact that the Project has been already put on the indicative list of individual key projects of the MROP has some very positive consequences. First of all the necessary sum of money for the project has been reserved within the MROP. Secondly, the Project will not be a subject of call for proposals competition procedure. One cannot take however for granted that the Project will be co-funded within MROP. The Project must meet all formal and substantive requirements. The application for co-funding within MROP will be submitted by the mentioned special purpose vehicle in the second quarter of 2012.
11. Malopolska Broadband Network Limited Company was established by the Malopolska Regional Assembly (Sejmik): the Resolution No. X/164/11 of 8 July 2011.
    The task of the company is to find an investor (private partner), that will take active part in the construction costs of broadband infrastructure, and that will also provide technical support for the Malopolska Broadband Network project. Then the company's goal will be to obtain some additional, external funding for the implementation of the Malopolska Broadband Network project and subsequently to design, construct, and operate the telecommunication infrastructure created within the project.
12. The Project’s implementation schedule:
    • 2011 – establishment of a special purpose vehicle to implement the Project; start of a private partner selection procedure. 
    • 2012 – selection of a private partner for the Project; submitting an application for funding within the MROP; signing a MROP subsidy contract; carrying out necessary procedures for selecting contractors for the project (acquisition of fiber optic infrastructure, construction works; supply and installation of active broadband infrastructure appliances); works related to prepare construction design and building permits.
    • 2013 – finalizing preparation of construction design and building permits; construction and installation works; launching first sections of the network.
    • 2014 - finalizing construction and installation works; launching next sections of the network; completion of the project.
13. The project’s scope includes the creation of a regional backbone and distribution carrier-class network of over 3000 km that will contain nearly 500 telecommunication nodes.
14. Broadband network will be launched gradually (as soon as certain sections of the network will be deployed). The Malopolska Broadband Network will fully operate in December 2014.