The European Commission has approved an initiative by the City of Prague to create a municipal wireless communication network. The initial plan provided unrestricted free internet access to the public. However, according to Competition Commissioner Kroes, subsidies for such networks are only acceptable if they address a well-defined market failure or cohesion problem. As the initial plan would have crowded out investment from private operators, the City’s plan was modified, serving only the public sector and providing citizens with free broadband access limited to public-sector websites with non-commercial content, such as eGovernment services. Taking into account these modifications, the Commission has found that the project does not involve State aid.