1. A competitive model for digital
TV
Lessons from the EU
Christian HOCEPIED
13 September 2012
The views expressed are purely those of the speaker and may not in any
circumstances be regarded as stating an official position of the European
Commission

2. Goals Means Issues
addressing the spectrum analogue switch off Effective spectrum
1 bottleneck shared access management
Nondiscriminatory
… content via any No
2 platform discrimination
spectrum assignment
Must carry – net neutrality
Innovative and Review Copyright
… a thriving creative
3 industry
convenient legal
Framework
content offers
… media pluralism and Level playing Fair competition
4 cultural diversity field and must carry
Spectrum and Content are vital for the success of the EU-Digital Agenda

3. overview
 May 2006 Regional Radio communication
Conference Geneva:
• switch-off 17 June 2015
 Communication COM(2005)204 and EP
resolution of 16.11.2005 on accelerating the
transition from analogue to digital broadcasting
• switch-off until the beginning of 2012.
 State Aid control on MS support to digitization
process
 Infringement procedures

4. Opportunities and risks of the
switchover
 Better usage spectrum = more TV channels +
spectrum dividend for mobile communications
 Multiplex = lower broadcast cost per TV channel =
more entry possibilities
 Better quality : HD and 3D – new opportunities for
content industry
 Risk: resistance incumbent players seeking to
maintain market position
 More accurate audience measurement is key

5. Switchover is begin
• Switchover is part of digitization 'revolution'
• Digital TV is more than analogue TV broadcasted
differently
• Standards are evolving: DVB-T2, HbbTV
• Connected TV : DVB-TV more and more to be
combined with Internet
• End point: DVB-T switch off?

6. State aid control
• More than 15 decisions to be found on
• http://ec.europa.eu/competition/elojade/isef/index.cf
m?clear=1&policy_area_id=3 + NACE code : J.60.20 -
Television programming and broadcasting activities
• principle of technological neutrality
• EU General Court Mediaset (case T-177/07)
• November 2005 Berlin Brandenburg decision
provides clear indications
• see IP/05/1394
• The onus is on Member States
• demonstrate that the aid is well tailored, limited to the
necessary amount and does not unduly distort competition.

7. Aid to simulcast
• (Public) TV considered as essential service
• MS aim ensuring seamless transition
• Simulcast analogue content on digital spectrum
to allow citizens readjusting television sets
• in average more than 12 months
• triggers additional costs for the broadcasters
• Several SA decisions
• E.g. Decision of 17.11.2010 regarding Slovakia
http://ec.europa.eu/competition/state_aid/cases/23723
5/237235_1178653_66_3.pdf

8. Competition Directive 2002/77
• 2006 Altroconsumo
• Infringement procedure against Italy regarding
legislation on the transition from analogue to
digital terrestrial broadcasting in breach of
Competition Directive
• Involves also Electronic Communications
Directives
• Unjustified restrictions on new broadcasters
and advantages granted to existing analogue
operators

9. Further procedures
• France
• Spectrum for additional TV channels granted to
incumbent analogue broadcasters outside open, non-
discriminatory procedure
• No justification
• Solution: tender was held
• Bulgaria
• Spectrum assigned on the basis of criteria which
were not proportionate
• New tender announced
+ cost orientation broadcast tariffs

10. Parallel sector specific regulation
• Directive 2002/21/EC "Framework Directive"
rRequires MS to review electronic communications
markets and impose ex ante remedies, where
necessary
• Several MS (e.g. ES, Fr, PL, ES) have imposed
access obligations to facilities of operators of
broadcasting networks, which cannot be easily
duplicated
• E.g. masts higher than 50 meters
• As a result, possible competition on the wholesale
level (alternative multiplex operators)

12. Media pluralism vs competition
• Competition law aims to control market power to
prevent restrictions of competition
• Open, competitive markets do not always guarantee
diversity of opinions, since competing undertakings may
align their editorial lines.
• Media pluralisms aims to guarantee diversity of
opinions
• “internal” pluralism rules : rules ensuring the expression
of diverse opinions on the public broadcasters
• “external” pluralism rules : provisions limiting
structurally the number of channels that the same media
group may control.

13. Conclusion
• Discretion MS in regulating digital switchover is limited by
• Reformed EU Regulatory framework for Electronic
Communications services and Spectrum harmonization
• The Competition Directive
• The audiovisual media Services Directive (AVMSD)
• Article 4(3) TEU or Article 106 TFEU in conjunction with
Articles 101 and 102 TFEU
• Charter of fundamental rights
• Planned Framework Directive on collective rights management
• In the EU :
• regulation mainly at Member State or sub national level
• + basic principles set in the process of Competition Law
enforcement, both at EU level and at national level

14. Issues to consider
• √ How to keep markets open?
• Standard setting bodies, competition authorities
and regulators to liaise
• √ National market situations vary
• √ Timeliness intervention is key
• Investors need a predictable framework
• Digital TV Channel number assignment is more
than symbolic moment