Communications Regulatory Authority

having the availability, on an exclusive basis and on all distribution platforms, of
particularly attractive content (in particular, football and newly released films), thus
hindering the development of the competitive process taking place among the media.
Apropos of this, the case of the sale of the “Premier League” rights for the 2007-
2010 period is significant. The European Commission intervened, ordering the English
first division league to sell the rights of the matches, breaking them down into six
packets, thereby prohibiting the exclusive acquisition of all the matches by just a single
supplier. The aim of the action is to increase the availability of the rights, and therefore
to help competition among the various technological platforms. At the end of the
auction, the rights were won in part by BSkyB (for a total of 92 games) and in part by
the Irish pay-TV broadcaster Setanta. BSkyB, which since 1992 had always won the
exclusive rights for the Premier League, thus had to enter into an agreement with the
Irish operator to enable its business and residential users to have access to all the
matches. Setanta also intends to make the matches available in pay-per-view mode on
the Freeview (digital terrestrial) and NTL (cable) platforms.
Lastly, it is necessary to remember the revision process in course with regard to
the “TV without Frontiers” directive by the European Commission (cf. paragraph 3.1.).
The purpose is to create a harmonised regulatory context that also contemplates the
most innovative content distribution modes, at present governed by other Community
directives, and which also takes into account the new forms of advertising that are
gaining ground. The directive must create a regulatory context that fosters innovation
and competition in the offering of television content, preserving the principle of
technological neutrality among the broadcasting platforms.
Technological platforms and competitive dynamics
Cable television
Competition between the cable and the satellite platforms is a phenomenon
which characterizes both the US and the European television sectors.
The past three years have been characterized by a sector restructuring process,
following the financial difficulties which several actors of the market had encountered.
In particular, in 2004, the operators had carried out numerous amalgamation operations;
these had involved the German and the French markets, countries in which the high
geographic fragmentation of the cable offerings had prevented the technology from
being a nationwide alternative to the other platforms (in particular satellite).
The consolidation process also continued into 2005. Among the most important
events, worthy of mention is the merger between the two British operators NTL and
Telewest. The operation gave rise to a single cable operator with a portfolio of around 5
million customers, 2.5 million of whom are subscribers to digital television services.
For the purpose of further expanding its package of communication services, the
operator has also invested in the acquisition of the mobile virtual operator Virgin
Mobile.
39