Draft decision - ANACOM closes comprehensive investigation into DTT costs, concluding that the amount charged to television operators is not excessive

ANACOM has concluded its comprehensive investigation into the costs and earnings of the DTT service, concluding that the prices which MEO currently charges television operators are not excessive.

This conclusion took into account the costs incurred by MEO in 2013, as well as the allocation of costs related to free capacity in MUX A between MEO and television operators. The conclusions of the comprehensive investigation have been submitted to public consultation and prior hearing procedures for a period of 30 working days.

In its examination of pricing, ANACOM considered that it should be taken into account that the inclusion of new channels on MUX A (DTT platform) does not depend exclusively on MEO, whereby the costs related to unused capacity on this platform should not be fully allocated to this company; as such, there is basis for some sharing of these costs between MEO and television operators.

In its draft decision, ANACOM recommended that in the future, MEO take the initiative to reduce prices to the extent that MUX A capacity is taken up or to the extent that there is a reduction in costs as would warrant a reduction prices, given that, preferably, the prices charged to television operators, should be cost-oriented.

It is recalled, however, that cost orientation of prices cannot be imposed by the regulator except following a market analysis which ascertains application of the criteria that warrant regulatory intervention and which concludes that MEO holds significant market power.

Analysis of the wholesale broadcast market for delivery of content to end-users will be completed following conclusion of the public consultation and prior hearing procedures taking place until 7 September.