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DVB-T Frequencies… Here we go with the Beauty Contest!

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The Ministry for Economic Development published the rules for the handing over of additional DTT frequencies.

Five multiplexes will be allocated for DVB-T (divided in a "Group A" with three multiplexes available to new entrants and existing operators, excluding RAI, Mediaset and TI Media, and "Group "B" with the remaining two multiplexes available to (almost) any operator, i.e. including RAI, Mediaset and TI Media but excluding Sky) and one for DVB-H (or DVB-T2).

No operator will be authorized to obtain more than five DVB-T multiplexes (taking into account also the multiplexes currently being operated). The frequencies right of usage will be granted for a period of twenty years, with a prohibition to sell before five years (with some exceptions).

The winning order will be determined considering 100 available points, of which: (i) up to 35 for the technical infrastructure plan (including points allocated for the number of employees, coverage in the first year, transmission equipment, technical innovation etc.); (ii) up to 35 for the commercial offer (including investments, "content" commercial success, existing and binding 4 year contracts with content providers, program quality and customer care etc.); and (iii) up to 30 for the previous experience (including experience in setting up communications network infrastructures, company dimension etc.).

Among other things, the participants will have to produce a technical plan, including a step plan to ensure 80% population coverage within 5 years, as well as commercial and editorial plans. The participation to the bid will have to be guaranteed by a deposit / bank guarantee of Euro 2.5 million.

The adjudication can be revoked in case, among other things, the coverage obligations and the editorial plan are not complied with. The current broadcasters will have to provide transmission services at cost to the successful new entrants. 

Each participant must apply within 60 days from the publication of the regulations in the Official Gazette, i.e. by 6 September 2011.

Who is favoured? What pitfalls? Please contact Giangiacomo Olivi (giangiacomo.olivi@dlapiper.com ) if you want to discuss this topic.


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