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Principal changes in the regulatory framework
Adoption of the new European framework for electronic communication services and networks and for
the national use of local bandwidth
Law 217 of December 15, 2011 published in the Gazzetta Ufficiale on January 2, 2012 introduced the
2010 Community Law. This instrument, in addition to delegating to the government the task of adopting
within three months the new framework for electronic communications services and networks (with the
consequent revision of the Electronic Communications Code Legislative Decree 259/2003), provides
that operators of local networks may host programs offering audiovisual media services at national level.
This provision, which damages Telecom Italia Group Media’s network operator, was challenged by
Telecom Italia Media Broadcasting in the appeal against the new digital terrestrial regulation
353/11/CONS. It will be necessary to determine what legal measures should be used to protect the
interests of Telecom Italia Media Broadcasting with regard to the ensuing enacting legislation.
In the context of the adoption of the European Directives 2009/140/CE and 2009/136/CE dealing with
the new regulatory framework for electronic communications, the Ministry of Economic Development has
released for consultation the outlines of two legislative decrees relating to the modification of the
Electronic Communications Code and the Personal Data Protection Code. Telecom Italia Media
participated in these consultations requesting the revision of the provision which excludes from trading
the frequencies received free of charge and requesting a regulatory link in terms of administrative rights
for network operator activities using digital terrestrial technology and fees for the concession of
frequency rights of use.
National Digital Frequency Assignment Plan
The National Digital Frequency Assignment Plan (PNAFD) approved with Decision 300/10/CONS
establishes 25 national networks, four of which in DVB-H, and introduces k-SFN technology for certain
networks which otherwise would not have 80% coverage of the territory.
The PNAFD distinguishes between the so-called internal digital dividend, 5 DVB-T networks and one DVB-
H network, to be assigned by means of a competitive ‘beauty contest’ procedure, and the so-called
external digital dividend, UHF channels 61-69, for mobile communications services.
With Decision 330/11/CONS, AGCom abolished the regional consultation meetings and initiated a
process for the completion of the frequency plan with the detailed planning of the resources to be
assigned to local broadcasters and to RAI in the areas which have not yet undergone digitalization.
Beauty Contest
With Decision 497/10/CONS, AGCom set the criteria for the competitive procedure for the assignment
of the internal digital dividend by means of a beauty contest.
The Decision erroneously placed Telecom Italia Media on the same footing as RAI and Mediaset, the
incumbent operators of terrestrial networks, forbidding the company, along with RAI and Mediaset, from
participating for Lot A which is reserved for existing operators with at most one analog network and for
new entrants among which AGCom included SKY Italia, admitted to the bidding process by the European
Commission.
On July 6, 2011 the call for bids and the bid rules were published and on September 5, 2011 Telecom
Italia Media Broadcasting, the Group’s network operator, submitted three separate assignment
requests, for lots B.1, B.2 and C.1. The Commission admitted the requests of:
- Europa 7 for Lot A.1
- Dfree, H3G and Canale Italia for Lot A.2
- Dfree and Canale Italia for Lot A.3
- Rai, Mediaset and Telecom Italia Media Broadcasting for Lot B.1
- Rai, Mediaset and Telecom Italia Media Broadcasting for Lot B.2
- Telecom Italia Media Broadcasting for Lot C.1
On November 30, 2011, SKY Italia, admitted for Lot A.2, withdrew from the contest.
Report on Operations The Business Units of the Telecom Italia Group – Media 73