ANACOM has granted MEO's request to renew the Right of Use of Radio Spectrum for the purpose of providing the digital terrestrial television broadcasting service, associated with MUX A, for the transmission of unrestricted free-to-air television programme services. The right is renewed for a period of seven years, maintaining current conditions.
MEO's request was based on five assumptions: renewal of the licence for a period of seven years; maintenance of technological conditions (DVB-T, MPEG4); initiation and conclusion of procedures to bring about full use of Mux A’s capacity; maintaining current prices per Mbps; and the provision of a financial rebalancing mechanism that would be triggered automatically in the event that the conditions of the licence are altered by legal or regulatory determination, especially if involving an increase in costs or a decrease in revenue.
ANACOM considers the renewal period of seven years requested by MEO to be appropriate, since it corresponds to the period for which the 470-694 MHz band is safeguarded for the provision of broadcasting services, as established at European Union level. This ensures the continuity of the DTT service supporting unrestricted free-to-air television programme services for this period, including the public television service, without any impact on the population using the DTT service.
With regard to the technology used (DVB-T and Mpeg 4), ANACOM considered that any change in technology would require the population to acquire new receivers. Due to the costs inherent to such a change, this would have a significant impact when the population has only recently had to undergo network migration (a proportion of DTT users would need to purchase new equipment and may have to repoint antennas). As such, ANACOM considers that maintaining the current technology until 2030 is a viable solution without impact on the population.
The remaining assumptions underlying MEO's request go beyond ANACOM's area of competence. Under the terms of the law, ANACOM does not have powers to initiate procedures with a view to occupation of the capacity available in Mux A. ANACOM is also not qualified to foresee and implement a financial rebalancing mechanism, since any such mechanism would have to be legally enshrined. Furthermore, from an economic and financial point of view, any project has risks – including the provision of DTT services. As such, it is considered that there is no merit in a mechanism which would eliminate any and all risks associated with the project.
Maintaining the current prices charged by MEO to television operators is also not viable. ANACOM is required to carry out an annual evaluation of the need to review prices charged to television operators for the provision of the television broadcasting service, in accordance with the procedures set out in Law no. 33/2016 and considering the principle of cost orientation. As such, ANACOM cannot give any assurance that the price per Mbps will remain constant for the length of the renewal period.
Likewise, ANACOM cannot rule out the possibility of a change to the framework applicable to the DTT service, particularly affecting the assumptions that go beyond ANACOM's area of competence. However, almost 11 months following the submission of the request for renewal and having considered the public interest underlying the need to ensure maintenance of the DTT service, in light of the situation that would result if it were to expire, ANACOM intends to renew the title.
If the legal regime applicable to the provision of DTT services is modified in relation to any of the above matters, as explained in its decision, ANACOM will not fail to ensure that these changes are reflected in the title that is now being renewed.
ANACOM's decision to grant MEO's request to renew the licence until 10 December 2030 was preceded by a public consultation to which responses were received from 6 undertakings and 9 individual citizens.
In general, ANACOM considers that this decision promotes the interests of citizens and will have a reduced incremental impact on all entities involved. On the one hand, with regard to the benefits of renewal, prolonging provision of the service beyond the current period supports the interests of citizens and responds to the needs of specific social groups, especially those with greater propensity to use DTT, such as families on lower incomes, families without children and families residing in the Centre, North and Alentejo regions of Portugal. In this case, the incremental impact of this decision is limited, and it may even lead to increased benefits for citizens, if the capacity that remains is used to transmit new channels.
On the other hand, the renewal of the DTT Right of Use of Frequencies does not, in itself, alter the status quo, insofar as it does not bring about additional costs for MEO, MEO's wholesale customers, end-users or for the Portuguese State.
This is also a decision that ensures regulatory predictability for all stakeholders.
Consult:
- Approval of the renewal of the right allocated to MEO to use the DTT radio spectrum (MUX A) https://www.anacom.pt/render.jsp?contentId=1764430
- Public consultation on the renewal of the right of use for the DTT radio frequency spectrum (MUX A) https://www.anacom.pt/render.jsp?contentId=1740020
