Anacom will now review the income of MEO with DTT – publico

                 

                         
                     

                 

 
                         

Rather than advocating television operators, the price charged by MEO (PT group) to television operators for broadcasts on digital terrestrial television (DTT) “is not excessive.” So concluded a thorough investigation of Anacom costs and revenues of the service. But simultaneously, the communications regulator believes that the prices charged by PT to RTP, SIC and TVI should now be cost-oriented and be subject to annual review. That’s what the entity chaired by Fátima Barros proposes a draft decision which will be on public consultation during the summer.

                     

                         The in-depth investigation into the DTT service costs and revenues was the result of a complaint originally filed in 2013 by RTP. In this, the public station asked the Anacom to intervene in the prices charged by PT to television companies for the signal distribution service.

According to the communications regulator, the outcome of the investigation, announced on Monday, It took into consideration “the costs incurred by MEO in 2013 as well as the allocation of free capacity costs in the MUX A [DTT platform] to MEO and television operators.” This is because the regulator believes that the costs of unused capacity MUX A should not be fully attributed to MEO and justify any cost sharing with television operators, although a large share falls to the owner of the platform.

This does not mean, however, that the MEO has no room for the future, come down the prices charged, says Anacom. This may occur, for example, “as the MUX capability The go being busy or if there is a reduction of costs, amounting to justify this reduction.” It is true that the prices charged to television operators, “desirably should be cost-oriented,” says the regulator, which simultaneously developed an analysis the wholesale market for broadcasting content, which concludes that the MEO / PT has significant market power, it is the only DTT network operator in Portugal.

In suits contest that awarded the license to PT “does not exist any obligation relating to cost accounting and financial reporting to assess whether the margins earned in this service, in which, we reiterate, the MEO is the only operator to act on the market are excessive, “said Anacom draft decision on the market analysis, which is under public consultation until the beginning of September.

Similarly, the DTT tender (conducted in 2008) also did not result in “any accounting separation obligation on the specific activities related to the provision of broadcasting services”. This may, according to Anacom, “hinder immediately access to periodically costing data and the subsequent evaluation of the price.”

And that’s why the governor wants to impose new rules to MEO, including “imposing an orientation obligation of cost-oriented.” And, as these may vary from year to year, either in terms of new investments or amortization thereof, “is justified annually evaluate the need to review the price that the MEO will charge to television operators for DTT service” also underlines the Anacom.

Is that a market without competition, “the dominant operator has little incentive to reduce the costs of providing wholesale services and operate efficiently,” since these “high costs may be transferred through excessive prices for wholesale customers who have no alternative choice, “recalls Anacom.