Short Form Relating to Notifications of Draft Measures Pursuant to Article 7 Of

Short Form Relating to Notifications of Draft Measures Pursuant to Article 7 of

Directive 2002/21/EC

(“Short Notification Form”)

Wholesale Market of Broadcasting Transmission Services, to deliver broadcast content to end users.

Wholesale market of broadcasting transmission services to deliver broadcast content to end users has been removed from the 2007 Recommendation’s listof relevant markets susceptible to ex ante regulation.
Please brieflydescribe the contentof the notified draftmeasure. Inparticular, pleaserefer to the relevantmarket concernedand the reasonswhy you considerthat the market iseffectivelycompetitive or thethree criteria arenot met. / In the first round of market analysis (see cases IT/2006/0424) AGCOM identified seven relevant markets according to the network of transmission (analogue terrestrial, digital terrestrial, radio, satellite, cable) and the geographic scope (national or local). The analogue television broadcasting marketwas not found competitive.RAI and Mediaset weredesignated as having SMP on that market and were subjects to remedies.
In the current analysis AGCOM proposes a new definition for the national terrestrial TV broadcastingmarket including analogue and digital technology and identifies a new market of national terrestrial TV broadcasting in DVB-H technology. AGCOMproposesto maintain the former definition of the other markets identified.
These markets include local terrestrial TV broadcasting, national terrestrial radio broadcasting, local terrestrial radio broadcasting, satellite TV broadcasting and IPTV (TV broadcasting over telecom fixed networks).
As the 2007Recommendation no longer includeswholesale market of broadcasting transmission services to deliver broadcast content to end users, AGCOM has carried out the three-criteria test.
As far as the first criterion is concerned, AGCOM founded high and non transitory barriers to entry in the national terrestrial TV broadcastingmarketin consideration of: i) frequency scarceness; ii) legal framework on frequency trading; iii) investments required; iv) presence of vertically integrated operators with strong position on analogue TV.
AGCOM thinks that there are high and non transitory barriers to entry also in the national terrestrial TV broadcastingin DVB-H technologymarketin consideration of: i) frequency scarceness; ii)competitive advantage of existing digital network operators; iii)investments.
In light of the above, AGCOM concludes that the first criterion is met in both the markets.
In the other markets identified, the first criterion is not met.
AGCOMconsidered that the second criterion is not met in the national terrestrial TV broadcastingmarket, taking into account i) the expected evolution of the national terrestrial TV broadcasting marketin consideration of the next transition to digital technology;ii) the implementation of the regulatory framework adopted by AGCOM (i.e. delibera 181/09/CONS and delibera 300/10/CONS), aimed at fostering competition and pluralism and lowering barriers to entrythrough a better allocation of the digital terrestrial frequencies; iii)the expected entry of new operators on DTT and growth of smaller operators as a result of the allocation of the digital dividend; iv) the development of different platforms in competition between them.
The second criterion is not met also in the national terrestrial TV broadcastingin DVB-H technologymarket, taking into account i) the expected entry of a new operator as a result of the allocation of the digital dividend following the aforementioned regulatory framework; ii) the undertaking held by Mediaset in the context of the acquisition of Europa 7’network.
As the second criterionis not satisfied, AGCOM concludes that the three-criteria test is not passed. Nonetheless, AGCOM proposes toextend the existing regulatory obligations imposed on RAI and Mediaset until the switch-off ending.
These transitional measuresare aimed at giving to the affected third parties a reasonable period of notice to adapt themselves to the unregulated environment.
Please indicate theArticle 7notificationreference of thepreviously notifieddraft measures. / Case IT/2006/0424: Wholesale market of broadcasting transmission services to deliver broadcast content to end users.
Does the NCAagree with theproposed draftmeasure as regardsthe analysis of therelevant market? / NCA consultation runs in parallel with European consultation.
Internet referenceto the draft measure / Draft decision is attached to the notification
Comments / 5 participants to the national consultation that have agreed on market definition. As regard the three criteria test the focus was on national terrestrial television broadcasting where the main concerns were on the conclusions on the 2nd criterion. In particular, the operators disagreed with the possibility to have a more competitive environment as a result of the implementation of the aforementioned framework (i.e. the tender set out in the delibera 191/09/CONS). Only Mediaset disagreed on the extension of the remedies.