The transition to DTT in Italy: an introduction

1
The transition to DTT in Italy an introduction

• Lisa Di Feliciantonio
• AGCOM, Italian Authority for Communications
• Warsaw, 25 February 2004

2
The Italian broadcasting context

• Overcrowded frequency spectrum
• 11 national network and 600 local channels
• Strong duopoly
• PSB commercial operator Mediaset gather 90 of
  the audiences and 80 of the economic resources
• DTT seen as a chance to rationalise the use of
  the spectrum and increase the degree of pluralism

3
The steps towards DTT (1/3)
DTT a brief history

• The 1997 communication act
• The communication act in 1997 (law 249/97)
  creates AGCOM as sector regulator and imposes to
  issue a frequency plan to reorganize the use of
  the spectrum
• The plan, issued in Nov. 1998, involves a deep
  reshuffling of the existing frequency allocation
  and reserves 4 frequencies for the start-up of
  digital terrestrial.
• AGCOM white book
• The committee for the development of digital
  terrestrial, created by AGCOM, publish a white
  book on DTT (1999).
• Two different paths towards DTT are envisaged
• The implementation of the analogue plan and
  therefore the start-up of DTT on the 4
  frequencies reserved for that purpose.
• A totally innovative approach allowing the
  trading of frequencies between broadcasters in
  order to allow the broadcasters interested in
  launching DTT services to get extra capacity.

4
The steps towards DTT (2/3)
DTT a brief history

• The law 66/00.
• First comprehensive legal framework for the
  transition to all digital.
• Switch off date set at December 2006.
• AGCOM regulation 435/01/CONS.
• Regulates the different phases of the transition.
• Establishes antitrust measures and access rules
  for the new digital environment.
• The judgment of the Constitutional Court on Rete
  4.
• In Nov 2002, considering the antitrust measures
  included in the Communication Act of 1997 not
  sufficient to ensure pluralism, the CC
  establishes that the third Mediaset network
  (Rete4) has to give up its terrestrial
  frequencies by the end of 2003, unless the
  development of DTT is such to guarantee an
  adequate degree of pluralism and competition.
• Mediaset decides to invest heavily in the
  roll-out of DTT to save its third network.

5
The steps towards DTT (3/3)
DTT a brief history

• The proposal for the new Communication Act
  (d.d.l. Gasparri)
• obligation for RAI to set up 2 DTT with 50
  population coverage by the end of the year
• new antitrust measures in order for Rete 4 to
  keep its frequencies the new Act establishes that
  it is enough to create 2 DTT networks covering at
  least 50 of the population
• Incentives to transition subsidies for the
  purchase of STBox (150 x 1Ml STBs)
• The parliament approves the law, which is stopped
  by the President and sent back to the parliament
  in order to review the antitrust measures.
• A government decree is passed in december to save
  Rete 4 the decree allows Rete4 to keep
  broadcasting beyond Dec. 2003
• The AGCOM will have to evaluate by April 2004
• The number /quality of new channels broadcasting
  on the DTT networks
• The effective coverage of the population
• The availability of digital receivers
• If the results of the assessment will not be
  deemed satisfactory, the AGCOM will be
  responsible for taking antitrust measures to
  restore pluralism.