THE DIGITALISATION PROCESS

2011/2012

І . GROUND DIGITAL BROADCAST - СЕМ:

20 audio-visual media service providers hold licenses to create 25 television programmes intended for ground digital broadcast.

23 –have national coverage;

2 - have regional coverage (1 – public, 1 - commercial).

In 2011 CEM announced the first tender for the issuance of licenses for television activities for the creation of programmes with regional coverage–Targovishte Region,intended for broadcasting through the electronic communications network for ground digital broadcasting–CEM decision No 9 of 10 May 2011;

By virtue of Decision No 154 of 27 July 2011 the Council finalised this procedure under art. 116f of the Radio and Television Act (RTA) and issued a license for television activities through ground digital broadcasting to ET "Stel – 66 – Stela Dimitrova".

For the first time CEM has licensed a commercial provider, holding a license to create programme with regional coverage for digital broadcasting - NRG Vision,for Targovishte District.

In accordance with § 37a of the Transitional and Concluding Provisions (TCP) of the Act Amending and Supplementing (AAS) the RTA and in relation to CEM's decision,which announced the method to determine the entities whose programmes are going to be broadcast obligatory by the Entity that was awarded a permit to build networks for ground digital broadcasting during the First stage of the transition, set out in the Plan for Introduction of Ground Digital Television Broadcasting (DVB-T) in the Republic of Bulgariain 2011 CEM has established the compliance with the provisions of § 37а, para 1 of the AAS of RTA for Darik Radio and Television (DRT)) and Balkan Bulgarian Television EAD (for BBT programme).

CEM updates the list of providers of linear audio-visual media services and the radio and / or television programmes created by them, for which the Radio and Television Act envisages compulsory distribution by an entity, which has been granted a permit to use individually certain limited resource to carry out electronic communications via networks for ground digital broadcasting.

The list includes the entities, which already hold a license to create a programme,intended for distribution via networks for ground digital broadcasting.

  • During the First stage of the transition set out in the Plan for Introduction of Digital Ground Television Broadcasting (DVB-T) in Bulgaria of 2008, the right to compulsory distribution exists for 7 programmes already:

1. BTV MEDIA GROUP EAD – BTV PROGRAMME;

2. NOVA TELEVISION – FIRST PRIVATE CHANNEL AD – NOVA TELEVISION PROGRAMME;

3. BTV MEDIA GROUP EAD - bTV ACTION PROGRAMME;

4. TV 7 EAD – TV 7 PROGRAMME;

5. BULGARIA ON AIR OOD -M SAT PROGRAMME;

6. DARIK RADIO AD – DARIK RADIO AND TELEVISION PROGRAMME (DRT);

7. BALKAN BULGARIAN TELEVISION EAD – BBT PROGRAMME.

ІІ. A NEW PLAN FOR THE INTRODUCTION OF GROUND DIGITAL BROADCASTING - 2012

In mid February 2012 the new Plan for Introduction of Ground Digital Television Broadcasting (DVB-T) in the Republic of Bulgaria was adopted and published

  • GOAL OF PLAN 2012

The main goal of Plan 2012 is to ensure predictable and smooth transition from analogue to digital television broadcasting, and as at 1 September 2013 Bulgaria should have transitioned completely to the ground digital television broadcasting.

The plan set out the stages, deadlines and the terms and conditions for the introduction of the ground digital television broadcasting, as well as measures to support individuals with specific social needs by providing devices, allowing them access to radio and television programmes. The Plan envisages steps for effective and timely information to the population regarding the introduction of DVB-T.

In fulfilment of the legislative obligations and in compliance with the provisions of the law and Plan 2008, three tender procedures have been organised, carried out and closedin 2009 and 2010. As a result three permits to use radio frequency range have been issued to six networks with national coverage in total–two networks for broadcasting of programmes of commercial television operators and one network for broadcasting programmes of public television operators under the first stage in accordance with Plan 2008, as well as three networks for broadcasting of programmes of commercial television operators under the second stage in accordance with Plan 2008.

For the entity of the three networks under the second stage of Plan 2008 the right to use the individually set limited resources – radio frequency range, as well as the obligations related to its use, arise following the release of the latter from the entities involved in ground analogue television broadcasting with national coverage.

In accordance with the commitments undertaken by the entities in the course of the tender procedures the issued permits include the stages and deadlines for the construction of the networks as they are described in Plan 2008.

At present the construction of the three networks for ground digital broadcasting under the first stage of Plan 2008 is in progress.Conditions for the launching of the second stage of the transition include: the successful completion of the first stage and the release of the range granted to entities for ground analogue television broadcasting and the range used by the Ministry of Defence.

  • Simultaneous broadcasting – ground analogue and ground digital

The period for the simultaneous operation of the ground analogue and ground digital television broadcasting transmitters is limited to nine months.

After expiry of this term the ground analogue television broadcasting transmitters in the scope of the territorial coverage on the "island" will be switched off.

The period for simultaneous ground analogue and digital television broadcasting commences as of 10 January 2013 in all "islands" at one and the same time.

The media service providers creating television programmes that are compulsory for broadcasting, provide their programmes to the entity and sign a contract with it as follows:

  • For the programmes under § 37 and § 37а, para 1 of the TCP of AAS of the RTA, whereby the contracts are signed not later than 31 January 2013.
  • For the programmes under §37а, para 2 of the TCP of AAS of the RTA contracts between the media service providers and the entity are signed until 30 June 2013.

If the media service providers do not provide their programmes for distribution and do not sign contracts with the entity within the deadlines, set out above, the entity has the right to refuse their distribution on these grounds.Following expiry of the deadlines set out above, the entity may sign contract with media providers other than those listed above to distribute their programmes.

On 1 September 2013 all ground analogue television broadcasting transmitters shall ultimately cease to broadcast.

  • Securing access of the end users to the digital ground television broadcasting service

According to the provisions of § 209, para 5 of the TCP of the AAS of the Electronic Communications Act as of 1 September 2013 ground analogue television broadcasting on the territory of the Republic of Bulgaria shall cease. In this respect it is necessary for the population at that date to have available the respective receivers or set-top-boxes, allowing access to the "digital ground television broadcasting" service. This includes supplying the lowest income population groups with set-top-boxes without which the existing television sets would be unable to reproduce the signal through digital ground television broadcasting. For the people in disadvantaged social position television broadcasting is the only source of getting television signal due to the fact that it is free of charge.

Taking into account the technological neutrality principle, individuals with specific social needs may be supported with set-top-boxes allowing reception of satellite or cable digital television broadcasting.

  • FINANCIAL RESOURCES

In § 4 of the TCP of the Law on the State Budget of the Republic of Bulgaria for 2012 it is envisaged to provide funds up to BGN 17.5 million for set-top-boxes for individuals with specific social needs (end devices) for reception of ground digital broadcasting and for holding an awareness campaign on the introduction of the ground digital television broadcasting.

Decree of the Council of Minister No 6/18 January 2012 (promulgated in the State Gazette, issue 7 of 2012) provides for funds from the budget of the Ministry of Transport, Information Technologies and Communications amounting up to BGN 17.5 million for set-top-boxes and awareness campaign.

  • DECREE of the Council of Ministers No 6 of 18 January 2012 - to provide funds for set-top-boxes to individuals with specific social needs to receive ground digital broadcasting and to hold national awareness campaign on the introduction of the ground digital television broadcasting:

“Art. 1. The Minister of Finance shall provide in the 2012 central budget additional funds to the budget of the Ministry of Transport, Information Technologies and Communications amounting up to BGN 17 500 thousand to provide funds for set-top-boxes to individuals with specific social needs to enable them to receive ground digital television broadcasting and to hold a national awareness campaign on the introduction of ground digital television broadcasting.

Art. 2. The funds under art. 1 shall be secured at the expense of the reserve for unforeseen and urgent expenditures related to structural reforms and additional fiscal measures under art.1, para 2, section ІІ, item 4.1 of the Law on the State Budget of the Republic of Bulgaria for 2012.

Art.3. The Minister of Finance shall make the amendments to the 2012 budget of the Ministry of Transport, Information Technologies and Communications as required under art.1.

Art. 4. The Minister of Transport, Information Technologies and Communications shall organise and hold public procurement / procurements under the provisions of the Public Procurement Act to spend the funds under art. 1.”

AWARENESS CAMPAIGN:

  • Creation and broadcasting via the electronic media of video and audio clips explaining the advantages of DVB-T.

The provision of clear and readily accessible information, both nationally and regionally should inform the Bulgarian citizens as to how they will be able to receive ether (ground) digital television signal, what are the advantages of the ground digital television as compared to the ground analogue television, what are the ways to receive television signal (ether, from a satellite, via cable, via mobile devices, etc.) and which is the deadline by which analogue transmission will cease.

During the organisation of the awareness campaign and the development of the clips it is important to take into account a number of elements such as awareness of the citizens at present, their understanding of the transition and the technology, their attitude, perception and preparation for the change and last, but not least, their expectations. A good and understandable awareness campaign should be organised to achieve this goal.

  • Creation and distribution of information materials – preparation of advertising materials in national dailies.
  • Development of a website for DVB-T and promotion of DVB-T through websites and social networks.

The website should contain information as to what is DVB-T, the deadline for its introduction in the Republic of Bulgaria, the equipment necessary for reception, how it is used, documents and publications on the issue, and "Frequently Asked Questions" section.

The websites of all ministries and agencies shall be used to promote DVB-T, where links shall be created to the DVB-T website, as well as profiles of the ground digital television shall be created in the social networks.

  • Sociological study shall be carried out regarding the level of awareness of the population as to the digital television access;
  • Memorandum with household equipment traders shall be signed to inform the citizens as to the introduction of DVB-T.

ІІІ.THE EUROPEAN COMMISSION LAUNCHED AN INFRINGEMENT PROCEDURE AGAINST BULGARIA ON VIOLATION No 2011/4125

  • On 22 March 2012 the European Commission issued and sent to the Bulgarian government its official opinion regarding Motivated Opinion – Violation No 2011/4125.

Within two months the government should take measures– in accordance with art. 258, para 1of the Treaty on the Functioning of the European Community - the Commission urges Bulgaria to undertake the measures required in order to comply with this motivated opinion within two months as of receipt of the notification thereto.

THE COMMISSION, after it gave the Bulgarian authorities an opportunity to present their remarks in a letter dated 20 May 2011 and in view of the reply of the Bulgarian authorities of 20 July 2011, as supplemented with letter dated 2 November 2011,

ISSUES THE FOLLOWING MOTIVATED OPINION

in accordance with article 258, paragraph 1 of the Treaty on the Functioning of the European Community whereby

  • in accordance with § 5a, para 1 and para 2 of the TCP of the ECA limiting to two the number of the entities to which a television broadcasting range can be assigned and to which a permit to provide the respective electronic communications services within the two tender procedures of 2009 (two multiplexes for the first tender and three for the second one), Bulgaria has not fulfilled its obligations in accordance with article 2, para 1 of the Directive regarding the competition;
  • in accordance with article 47a and article 48, para 3 of the ECA forbidding the entities related to television operators that are not allowed to participate in the tender procedures for the selection of multiplex operators and rendering of multiplex services in Bulgaria, as well as multiplex operators with permits issued in Bulgaria to start work as television operators in countries other than Bulgaria, Bulgaria has not fulfilled its obligations in accordance with the requirements of article 2, paragraph 2 and article 4, paragraph 2 of the Directive regarding the competition, of article 7, paragraph 2 of the Directive regarding permission and article 9, paragraph 1 of the Framework Directive;
  • in accordance with article 48, paragraph 5 of the ECA forbidding holders of digital radio and television broadcasting ranges (multiplex operators) to build electronic communications networks to broadcast radio and television programmes, Bulgaria has not fulfilled its obligations in accordance with the requirements of article 2, paragraph 2 and article 4, paragraph 2 of the Directive regarding the competition, of article 7, paragraph 3 of the Directive regarding the permission and article 9, paragraph 1 of the Framework Directive.

Prepared by: Dilyana Kirkovska

03 May 2012

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