Digital Terrestrial TV in Spain (2002)
...oadcasters, which therefore are not allowed to apply for national DTTV licences, nor their shareholders. DTTV Market in Spain - In January 1999 the Government invited tenders for national digital terrestrial TV services to be operated by a new concessionaire. The successful company in this tender acquires the right to manage three multiplexes of four DTTV programmes services each and two DTTV programme services in another multiplex (totaling fourteen programme services). The only company that applied for this license was Onda Digital, whose main shareholder is Retevisión, the second Spanish telecom operator, which also owns the telecom network currently used for the transmission of terrestrial TV signals, and whose main shareholders (the Spanish electric utilities Endesa and Unión Fenosa, and Telecom Italia) control several cable operators. Onda Digital, whose brand is ‘Quiero Television’, was awarded this concession in July 1999. Quiero TV’s shareholders are: - Retevisión (49%) - Productions Company Media Park (15%) - The Spanish joint venture Sofisclave 98 [Lara family & La Caixa] (15%) - Six regional saving banks (12%) - British audiovisual group Carlton (7,5%) - Regional Basque telecom operator Euskaltel (1,5%) Quiero TV’s service consists of thirteen pay-TV programmes and one free-to-air promotional programme. In April 2000, Quiero TV got from the CMT the licence needed for the provision of conditional access services for digital TV. This enterprise started providing its services in spring 2000. It currently claims approx. 300.000 subscribers The prices that Quiero TV will officially charge to its customers are the following: a connection fee of Ptas 9950 (59.8 Euros), a monthly subscription price of Ptas 3750 (22.5 Euros) for the 14-channel package (unlike other digital platforms, Quiero’s digital offer is not divided into different packages) and Ptas 1000 (6 Euros) for the hire of the set-top-box. In addition, subscribers will have to pay an extra Ptas 4950 (29.7 Euros) if they want to get the wireless keyboard required to carry out Internet functions. Quiero TV has had a promotion in which subscribers were charged Ptas 5000 (30 Euros) for a subscription for six months, including the connection fee, the wireless keyboard and several pay-per-view football matches or films. This very attractive promotion has substantially increased the number of subscribers to Quiero TV, although the churn-out rate once the promotion is over is said to be very high. Besides the pay-TV services, Quiero is offering interactive services (such as games, leisure and travel guides, and music) and e-commerce (books, software, plane tickets, cinema or theatre tickets). Internet functionality include access to the Web, chat and e-mail. Quiero has opted for a Sagem set-top-box, and for OpenTV as its software provider for interactive services (expecting a smooth migration path to the MHP standard). Regarding the use of the proprietary API Open TV by Quiero TV, it must be noted that in September 2000 the CMT adopted a Resolution stating that it will investigate the impact of the use of proprietary API’s (Application Programming Interfaces) in the Digital Terrestrial TV market. The API’s perform in the digital TV decoders a similar function to that of the operating systems in the PC’s. They translate interactive TV applications written in a high-level software programming language into a low-level language the decoder can understand. If a decoder has a proprietary API embedded, it will not be able to understand interactive TV applications broadcast by a digital TV platform that uses a different proprietary API. As it has been stated before, the main Spanish operator in the DTTV market, Quiero TV, has chosen the proprietary API Open TV. The broadcaster Sogecable, the main rival of Quiero TV in the pay-TV market, has complained that this choice may affect competition in the DTTV market, and could restrict the ability of customers to receive all digital TV and interactive TV services with a single decoder. Sogecable is the main shareholder (83%) of the digital satellite pay-TV platform Canal Satélite Digital (CSD), and it has a national concession for the exploitation of an analogue terrestrial pay-TV programme service (Canal Plus). Sogecable has also been reserved a digital terrestrial pay-TV programme service in a national DTTV multiplex, which Sogecable will share with the other existing national analogue terrestrial broadcasters (Antena 3 TV, Gestevisión Telecinco and RTVE). These broadcasters must start providing DTTV services before April 2002. Sogecable considers that Quiero TV has a dominant position in the emergent DTTV market, as it has the right to manage 14 of the 21 national DTTV programme services currently available. Sogecable fears that the API choice made by Quiero TV turns “Open TV” into the de facto API standard in the DTTV market. If that was the case, Sogecable wouldn’t be able to run in its new DTTV programme service the interactive applications it had already developed for its digital satellite TV platform CSD (which uses the proprietary API “Mediahighway”), as the decoders of the main DTTV operator, Quiero TV, would have a different proprietary API embedded. Quiero TV has argued that when it started operating it had to chose a proprietary API because there were no open APIs at that time, and that it accepted then a compromise to start the migration to an open API (the Multimedia Home Platform -MHP- fostered by the Digital Video Broadcasting group) as soon as it is available. The CMT has stated that APIs are not covered by the Spanish Act 17/1997, which incorporates into Spanish Law the EC Directive 95/47. Nevertheless, the CMT has decided to open an inquiry in order to assess which is the impact of the choice of API made by Quiero TV on the digital TV market. Quiero TV’s main shareholder, Retevisión, is in charge of the DTTV networking roll-out. The official planned schedule for network roll-out foresees 50% coverage before June 30th 2000, 80% by June 30th 2002 and above 95% in the next ten years. Quiero’s first commercial transmissions in May 2000 covered around 60 per cent of the Spanish population, and 85 per cent by the end of 2000. - In March 2000, the Government invited new tenders for the provision of national DTTV services. In November 2000, the Government awarded two concessions, each of them allowing an operator to manage a digital terrestrial free-to-air programme service. These new DTTV operators will have to share a multiplex with Quiero TV. Five groups bided to try to get one of these licenses. The concessions were finally awarded to the consortia Veo TV and Net TV. + The consortium Veo TV is jointly controlled by the media group Recoletos (owned by Pearson), by the media group Unedisa (controlled by the Italian group Rizzoli and by Recoletos) and by the Spanish electric utility Iberdrola. + As regards Net TV, its main shareholders are the Spanish media group Prensa Española, the French broadcaster TF1, the Portuguese broadcaster SIC, the tobacco group Altadis and the Spanish production company Arbol. Prensa Española is also the main shareholder of Onda 6, a concessionaire that has the right to operate a DTTV free-to-air programme service in the Autonomous Community of Madrid. - The National Technical Plan on DTTV also states that there will be a regional multiplex in each of the 17 Comunidades Autónomas (“Autonomous Communities”, i.e., the Spanish regions). In principle, the four programme services of the regional multiplex will be managed by private concessionaires, but in those regions in which a regional public TV existed at the time of the approval of the 1998 National Technical Plan on DTTV (Catalonia, Madrid, Basque Country, Andalusia, Galicia and Valencia), the public regional broadcasters will have the right to manage two of the programme services. At regional level, only one Autonomous Communities has already awarded concessions to operate its regional DTTV multiplex, namely the Autonomous Community of Madrid. In May 1999 the Government of the Comunidad Autónoma de Madrid invited tenders to grant two new concessions for the provision of the public service of regional DTTV. The two successful companies (Onda Digital and Prensa Española TV/Onda 6), which have begun providing their services in 2001, have become the first private regional broadcasters in Spain. They manage a free-to-air digital television programme service each. These new DTTV operators share this multiplex with the regional public TV Telemadrid, which manages two DTTV programme services (Telemadrid Digital and laOtra). Other Autonomous Communities are expected to follow the Autonomous Community of Madrid soon. In February 2001, the Government of the Autonomous Community of La Rioja has invited tenders with a view to granting two new concessions for the provision of the public service of DTTV in its territory. The successful companies will manage two regional DTTV programme services each. Spanish provisions on DTTV As regards the regulation of DTTV, the specific provisions applicable in Spain are mainly the following: * Disposición Adicional Cuadragésimo Cuarta – Régimen jurídico de la radiodifusión sonora digital terrenal y de la televisión digital terrenal – de la Ley 66/1997, de Medidas Fiscales, Administrativas y del Orden Social, 30.12.1997 [Forty-Fourth Additional Provision – Regulation of Digital Audio Broadcasting and Digital Terrestrial Television – of the Act 66/1997, on taxation, administrative provisions and social affairs] (BOE 31.12.1997) - http://www.setsi.mcyt.es/legisla/radio_tv/da44.htm ^ D.A. 44ª de la Ley 66/1997 modificada por la Disposición Adicional Trigésima de la Ley 55/1999, de Medidas Fiscales, Administrativas y del Orden Social, 30.12.1999 [44th Additional Provision of Act 66/1997 amended by the Thirtieth Additional Provision of the Act 55/1999 on certain taxation and administrative provisions and social affairs] (BOE 30.12.1999) - http://www.setsi.mcyt.es/legisla/teleco/ley55_99.htm#da30 + Real Decreto 2169/1998, por el que se aprueba el Plan Técnico Nacional de la televisión digital terrenal, 09.10.1998 [Decree on the approval of the National Technical Plan on Digital Terrestrial TV] (BOE 16.10.1998) - http://www.setsi.mcyt.es/legisla/radio_tv/rd216998.htm + Orden de 9 de octubre de 1998, por la que se apueba el Reglamento Técnico y de Prestación del servicio de televisión digital terrenal, 09.10.1998 [Ministerial Order on the approval of the Regulation on some technical aspects and on the provision of Digital Terrestrial TV services] (BOE 16.10.1998) - http://www.setsi.mcyt.es/legisla/radio_tv/o91098.htm ^ Orden de 30 de diciembre de 1999, por la que se introduce una disposición adicional única en el Reglamento Técnico y de Prestación del Servicio de Televisión Digital Terrenal, aprobado por Orden del Ministerio de Fomento, de 9 de octubre de 1998, autorizando la emisión a las entidades adjudicatarias de las nuevas concesiones otorgadas para la prestación del servicio de televisión con tecnología digital terrenal, en régimen abierto y con carácter promocional, de uno de los programas cuya explotación se les permita, 30.12.1999 [Ministerial Order of 30.12.1999, on the introduction of an Additional Provision to the Ministerial Order of 09.10.1998] (BOE 08.01.2000) - http://www.setsi.mcyt.es/legisla/radio_tv/o301299.htm + Disposición Adicional Tercera (coordinación de programas de televisión digital terrenal) del Real Decreto1206/1999, por el que se modifica parcialmente el Real Decreto 1886/1996, de 2 de agosto, de estructura básica del Ministerio de Fomento, 09.07.1999 [Third Additional Provision (co-ordination of digital terrestrial TV programmes) of the Decree 1206/99, which partially amends Decree 1886/1996, on the structure of the Ministry of Development (Ministerio de Fomento)] (BOE 10.07.1999) - http://www.setsi.mcyt.es/legisla/radio_tv/rd1206_99_da3.htm _ A estas disposiciones de ámbito general hay que añadir diversas resoluciones por las que se convocan concursos de TDT ; resoluciones por las que se designan a los adjudicatarios; y resoluciones por las que se renuevan determinadas concesiones de televisión analógica (imponiendo a los operadores la obligación de emitir en digital en un plazo concreto): + Resolución de 11 de enero de 1999, de la Secretaría General de Comunicaciones por la que se hace público el Acuerdo del Consejo de Ministros de 8 de enero de 1999, por el que se aprueba el pliego de bases y de prescripciones técnicas por el que ha de regirse el concurso público para la adjudicación de una concesión para la explotación del servicio público de la televisión digital terrenal y por el...