RAI – RADIOTELEVISIONE ITALIANA/RAMI DI AZIENDA
PRESS RELEASE
PRESS RELEASE
The Competition Authority has authorised RAI's acquisitions for digital broadcasting
At its meeting on 29 April 2004 the Competition Authority authorised the acquisition by RAI, Radiotelevisione Italiana S.p.A., of 11 businesses, comprising 84 television transmission facilities and their respective frequencies. The purpose of these acquisitions is to carry out test transmissions of digital technology services and programmes using terrestrial frequencies, and form part of a single Project whose purpose is to create two so-called multiplex terrestrial digital technology transmission networks.
During its investigations, the Authority had found that unlike the situation in other European countries, in Italy the development of the market for television signal transmission networks had been haphazard. RAI and Mediaset had sufficient frequencies and facilities to guarantee the availability of three television networks covering virtually the whole of Italy's territory and population. In particular, RAI had the largest number of frequencies, with an average of far more frequencies for each of the three national channels (RAI1, RAI2, RAI3) than those provided under the national television broadcasting frequency allocation Plan using analog technology. The expert report, commissioned by the Authority in the course of the investigation, ascertained that there were major redundancies in the coverage of the aforementioned television networks and that RAI could therefore exploit the excess frequency capacity to create one of the two multiplex networks in question.
The present system of analog networks was highly concentrated, in terms of both the high economic entry barriers and the high regulatory barriers, which had straightjacketed the market structure, leaving it essentially unchanged over the past 15 years. And this situation was also likely to be repeated for the digital networks, considering that terrestrial digital technology was a channel for offloading analog resources.
However, the Authority considered that the operation did not give RAI Radiotelevisione Italiana S.p.A. a dominant position on the national terrestrial television signal transmission infrastructure and network markets. For it was essential to contextualise the assessment of the acquisitions in question, by taking specific account of the particular historical, regulatory and market situation, and the evolution of the technology which further specified the terrestrial television broadcasting sector. The Authority also took account of the fact that there was still a frequency offering, which was available to local broadcasters, such that the acquisitions in question should not jeopardise the possibilities available to other competitors who were at all events already operating in prominent positions on the same, and on allied, markets.
Supported by a favorable opinion received from the Communications Regulatory Authority on 26 April, the Authority therefore concluded that although the notified operations were not strictly indispensable for creating the two multiplex networks required by law, they were unlikely to create a dominant position for the benefit of RAI in a manner that would substantially hamper competition on a lasting basis.
Rome, 29 April 2004