Regulator Moves on Czech Digital TV Licenses

Michael Hedges - April 13, 2006

Political overtones color Europe’s digital media rondo obbligato, nowhere more than in the new Member States where the score changes as quickly as the ensemble members and conductors. Breathlessly, the audience still waits for the curtain to rise.
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Czech broadcast regulator RRTV (Rada pro rozhlasové a televizní vysílání) strained to issue six digital TV licenses as the Parliament held ritardondo the empowering media law. There is a certain harmony to this, and a theme echoing across Europe. The Hungarian parliament, too, has yet to pass a new media law enabling smooth modulation to the new digital key.

No less luminary than DG Info Society Commissioner Vivaine Reding paid a visit earlier this month to the RRTV, in part to “ask” about digital TV progress. Mrs Reding wants analogue television ended in the European Union by 2012. The RRTV promised switch-over by 2010.

RRTV licensed Z1, TV Pohoda, Regionální televizní agentura (RTA), Febio TV, TV Barrandov and Ócko to operate on the two existing multiplexes. TV Nova and Prima TV applied for but were not granted additional licenses. They – when the new Czech media law passes – will receive two digital channels each.  

“If TV Nova and Prima TV received additional channels,” said RRTV Chairman Václav Zak, quoted in The Prague Post, ”we could hardly call that fair competition.”

TV Nova, owned by Central European Media Enterprises (CME), and Prima TV, 50% owned by Modern Times Group (MTG), are the only licensed analogue national channels. Prima TV is connected financially to Czech Digital Group, a consortium of technical and infrastructure providers, operates of one of the new digital multiplexes. Ceske Radiokomunikace, privatized and sold to Spain’s Telefonica last year, operates another digital multiplex, primarily used by Ceske Television, the public broadcaster.

The new digital operators are no less well connected, albeit local. TV Barrandov is a project of Barrandov Studios, currently hosting the film production Casino Royale. Their offer will be a general interest channel. TV Pohoda, owned by Radio Cas and Radio Hey licensee Radim Parizek, will offer a channel for teenagers on one multiplex and, in a joint venture with RTA, a childrens’ channel on the other multiplex.

The news channel, Z1, is financed by J&T Finance Group, major shareholder in Slovak all-news channel TA3.  Major Czech publisher Mafra, owned by German publisher RBVG, received a license to offer its TV Ócko, a music channel. Mafra also owns Radio Classic.

The RRTV gave the new digital license holders a year to launch. Some expect to be on the air before the end of this year.

Most Czech observers believe the full effect of digital TV will not be felt for two years, at least. One will certainly be an increase in TV ad spending, as advertisers and agencies try out new combinations. At the same time, Czech public television will be phasing out advertising. At the same time, other digital media will be entering the marketplace. At the same time, Swiss publisher Ringier is looking to the Czech TV market. At the same time…

Rondo Obbligato

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Hungarian Media Act "Contravenes" EC Competition Directive - April 13, 2006

text of DG Competition press release

The European Commission has formally requested Hungary to abolish the restriction imposed by the Hungarian Media Act on the provision of cable TV services in violation of EU competition rules. The Commission’s request takes the form of a ‘reasoned opinion’, the second stage of the infringement procedure under Article 226 of the EC Treaty. If Hungary fails to comply within two months of receipt, the Commission may refer the case to the European Court of Justice.

Competition Commissioner Neelie Kroes said: “Hungary is depriving cable operators of their right to provide broadcasting transmission services wherever they see fit. This restricts competition both among cable operators and between infrastructures to the detriment of consumer choice.”

Commission Directive 2002/77/EC of 16 September 2002 on competition in the markets for electronic communications networks and services aims at ensuring that competitive market conditions prevail across the European Union. According to the Directive, Member States shall ensure that no restrictions are imposed or maintained on the provision of electronic communications services, including broadcasting transmission services.

However, the Hungarian Media Act limits the rights of cable operators to provide broadcasting transmission services in Hungary to a territory covering not more than one third of the population. This is in contravention of the Directive.