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Digital Terrestrial Television Italian regulation

15th EPRA meetingBrussels, 16-17 May 2002

Lisa Di Feliciantonio

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National broadcasting environment:Whole frequency spectrum currently in use Digital frequency allocation plan not issued yet

Law 66/01establishes the transition to digital terrestrialguidelines for AGCOM’s regulation

AGCOM regulation: Conditions for issuing licences and authorization and underlying business modelProvisions for transitional period 2002 – 2006 Rules for the protection of pluralism

Regulating DTT: summary of main legislative steps

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Law 66/01

Frequencies “trading” between operators in order to free technical resources for the kick off of digital terrestrialOperators can use frequencies acquired to start experimental DTT broadcasting But:: 40% of capacity must be reserved to independent content providers (transitional period) Digital switch over by December 2006

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Analogue TV value chain & regulatory obbligations

Rules on amount & scheduling of advertising

Protection of minors

European quotas

Antitrust rules on amount of frequency used

CONTENT

NETWORK

COND. ACCESS

VERTICALLY INTEGRATED BROADCASTER

Accounting separationAccess rules

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AGCOM Regulation: licences and authorizations

Key issue of the DTT reg: fragmentation of value chain

CONTENT PROVIDER

SERVICE PROVIDER

Manages network infrastructures

and frequencies

Creates/broadcasts programme schedules

Provides conditional access or information

society services

NETWORK OPERATOR

LICENCE AUTHORIZATION

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AGCOM Regulation: business model

Interaction between content providers and network operators is left to market dynamics:

Network operators will be awarded the frequencies and will negotiate with content providers and independent channels to put togheter an offerNo limitation to ownership of networks National networks can carry local content and local networks can carry national content

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AGCOM Regulation: transition to DTT

The transition will be lead by existing broadcastersUntil March 2004 analogue broadcasters may apply for DTT provisional authorization The authorization will be valid untill July 2005Applicants that hold more than one TV license must ensure that 40% of their DTT capacity will be given to independent content providersFrom March 2004 those who have been authorized for experimentation may apply for a network operator licence.After 2006 available capacity will be granted to existing licensee or others

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AGCOM Regulation: pluralism and competition

Independent content providers must be granted access and non-discriminatory conditions 1/3 of total capacity reserved to local broadcasters Same content provider cannot be granted authorization to broadcast more than 20% of digital television programmesAccess to networks shall be granted by network operator on equal and non-discriminatory basis By 2004 the AGCOM will issue a new regulation to grant access to independent content providers in case of resources not sufficient to guarantee access to all requests