Appendix 2 - Revenues accounted for in the CAS, between 2010 and 2013, for the DTT service

MEO presents the following revenues accounted, in each of the years, for the ATT¹ and DTT services in the CAS:

Values in Euros
(1) Additional to ATT.
[ECI]

MEO presented also values of the table above broken down according to operator.

MEO refers that, in order to i) respect prices presented in the variant tender proposal and ii) meet the agreement concluded in the scope of MoU with television operators and the contract concluded with Grupo Media Capital, the company billed TVI an amount of [BCI]     [ECI] Euros for DTT services in 2010 (specifically, this amount was specialized in December 2010, and the corresponding bill was issued to TVI in January 2011).

Still according to MEO, in June 2011, the following bills were issued to various operators:

• RTP: two bills of an individual value of [BCI]     [ECI] Euros, for the extra amount due (compared to the ATT billing) for the simulcast period (2010 and 2011), according to the MoU concluded in 2008;
• SIC: two bills of an individual value of [BCI]      [ECI] Euros, for the extra amount due (compared to the ATT billing) for the simulcast period (2010 and 2011), according to the MoU concluded in 2008;
• TVI: bills amounting to [BCI]     [ECI] Euros, for the provision of the DTT service in 2011 (simulcast period).

MEO refers that, as negotiations with television operators were already underway, focusing on the reduction of amounts applicable during the simulcast period, these bills were carried under deferred income, and as such, the respective values were not acknowledged in 2011, but only in 2012, and in the case of TVI, a part of the amount still in 2013.

In 2012, according to MEO, negotiations with television operators were concluded, final prices where agreed and, in the case of SIC and TVI, the respective contract for the provision of signal encoding, multiplexing, transmission  and broadcasting services over the digital terrestrial network, for the broadcast of free unrestricted access TV programmes (MUX A), were concluded. The contract with RTP, according to MEO, was concluded later, in March 2013.

In this scope, MEO refers that several accounting movements were made, as detailed in Appendix 3.

Allocation of DTT revenues to the years of provision of services

In the light of the above, MEO presented the correct allocation of revenues to the respective year of provision of services (where, for example, simulcast revenues are assigned to 2010 and 2011 and ATT revenues, between the date of pilot transmitter switch-off and 31.12.2011, are assigned to 2011):

Values in Euros
(1)  Additional to ATT.
[ECI]

MEO further submitted copy of the following information:

• MoU concluded with RTP (on 21.04.2008), SIC (on 21.04.2008) and TVI (on 18.04.2008), which integrated MEO’s tender proposals;
• Contract concluded with Grupo Media Capital;
• Contracts for the provision of signal encoding, multiplexing, transmission  and broadcasting services over the digital terrestrial network, for the broadcast of free unrestricted access TV programmes (MUX A), concluded with RTP (on 15.03.2013), SIC (on 16.07.2012) and TVI (on 25.07.2012);
• Contract for the provision of signal encoding, multiplexing, transmission and broadcasting services over the digital terrestrial network, for the broadcast of the Portuguese Parliament’s video signal - ARTV - Canal Parlamento, concluded with ARTV on 09.11.2012, and respective addition on 27.11.2012;
• Bills for the period between January and April 2012 for values concerning ATT and respective subsequent credit notes;
• Bills and respective credit notes for values initially agreed for the simulcast period;
• Bills with final values agreed for the simulcast period and as from 01.01.2012.