Draft Decision on the Television Signal Distribution and Broadcasting Service
In accordance with number 3 of Article 16th of the Bases for the Concession of the Telecommunications Public Service, approved by Decree-Law number 31/2003 of 17/02, ICP-ANACOM, having sounded out the opinion of the Instituto da Comunicação Social (I.C.S.), is to be responsible for ensuring that the price system for access to the Television Signal Transport and Broadcasting Network complies with the principles of transparency, non-discrimination and cost orientation.
With respect to the service being analysed, PT Comunicações is to maintain its obligation to provide cost orientation, since, at the present time, there is no data to suggest that, within the scope of the analysis of this market and the imposition of obligations which is to be carried out under the terms of Law number 5/2004 of 10/02, this obligation to provide cost orientation should be cancelled.
Pursuant to the determination of 03.07.2003, ICP-ANACOM ordered that the concessionaire, PT Comunicações, should reduce the prices in effect for the provision of this service in order to guarantee compliance with the aforementioned principle.
According to the most recent information, received on 07.02.2005, with respect to the results of PT Comunicações’ Cost Accounting System (C.A.S.) for the first half of 2004, the television signal distribution and broadcasting service shows a significant margin. This is considered as being incompatible with the principle of cost orientation.
This difference between prices and costs is all the more significant since, at the present time, no other operator is providing a service which can, in terms of quality, coverage and price be considered as providing a viable alternative to the television signal distribution and broadcasting service provided by PT Comunicações.
Thus, considering:
1. That pursuant to the terms of number 3 of article 16th of the Bases for the Concession of the Telecommunications Public Service, the prices of the television signal distribution and broadcasting service must comply with the principles of transparency, non-discrimination and cost orientation;
2. That the current margin of this service, according to the most recent information regarding the results of the PT Comunicações’ C.A.S., is significant:
3. The necessity of a rapid and sustained promotion of greater adherence between the principle of cost orientation and the prices of the television signal distribution and broadcasting services provided by PT Comunicações, with particular attention to the social effect of this service and its relevance within the global framework of the development of the Information Society;
4. The preponderant position of PT Comunicações as a provider of television signal distribution and broadcasting service,
The Board of Directors of ICP-ANACOM, in a meeting held on 06.07.2005, determined, under the terms of number 3 of Article 16th of the Bases for the Concession of the Telecommunications Public Service, approved by Decree-Law number 31/2003 of 02/17, the following:
1. PT Comunicações must lower the price of each of the individual items which form part of the television signal distribution and broadcasting service, by at least 17% in order to guarantee that the price system of the service in question complies with the principle of cost orientation;
2. The new prices must take effect on 01.08.2005;
3. To submit this draft decision for assessment by the Instituto da Comunicação Social and for the prior hearing of interested parties under the terms of Articles 100 and 101 of the Code of Administrative Procedure, in order that the same, if they so desire, may express their opinions on points 1 and 2 in writing, within a maximum of 20 working days.
