Decision regarding the Television Signal Distribution and Broadcasting Service
Pursuant to paragraph 3 of article 16 of the Bases of the Concession of the telecommunications public service, approved by Decree-Law no. 31/2003, of 17/02, it is incumbent upon ICP-ANACOM, having sounded out the opinion of the Instituto da Comunicação Social (ICS), to ensure 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.
Thus, as regards the service under consideration, PT Comunicações maintains currently 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to be carried out under the terms of Law number 5/2004 of 10/02, this obligation to provide cost orientation should be withdrawn.
Consequently, on 06.07.2005, the Board of Directors of ICP-ANACOM approved a draft decision regarding the television signal distribution and broadcasting service, having notified interested parties to assess the subject within a 20-working-day time limit, under articles 100 and 101 of the Code of Administrative Procedure. Comments received, the respective assessment and reasoning for the decision are comprised in the “Report of the prior hearing of interested parties on the draft decision regarding the television signal distribution and broadcasting service”, which is an integral part of the present determination.
According to the most recent information with respect to the results of PT Comunicações’ Cost Accounting System (CAS) for 2004, the television signal distribution and broadcasting service shows a significant margin, which 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.
Therefore, considering:
1. That, in compliance with paragraph 3 of article 16 of the Bases of the Concession of the telecommunications public service, approved by Decree-Law no. 31/2003, of 17 February, the ICS was sounded out, and did not oppose to the Draft Decision, noting that it does not have any evidence leading to numerical values different to those on which the Draft Decision under consideration is based;
2. That, pursuant to paragraph 3 of article 16 of the Bases of the Concession of the telecommunications public service, the prices of the television signal transport and broadcasting service should comply with the principles of transparency, non-discrimination and cost orientation;
3. 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;
4. The need to promote, swiftly and in a sustained way, an increased adherence between the principle of cost orientation and the prices of the television signal transport and broadcasting service provided by PT Comunicações, particularly having regard to the social repercussion of this service and its relevance in the global context of the Information Society development;
5. 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 01.09.2005, hereby determines, pursuant to paragraph 3 of article 16 of the Bases for the Concession of the telecommunications public service, approved by Decree-Law no. 31/2003 of 17/02, 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 shall take effect as from 01.08.2005.
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Consult the Report of the prior hearing of interested parties on the draft decision regarding the television signal distribution and broadcasting service (available in portuguese).
See also:
- Relatório da audiência prévia às entidades interessadas sobre o projecto de decisão relativo ao serviço de distribuição e difusão do sinal de televisão https://www.anacom.pt/render.jsp?contentId=292576
