We have been speaking in our Lawyers Monday video about the main DDT broadcasting issues in Italy and the necessity to reach a prompt decision on the available frequencies. The Government finally confirmed that the additional DTT frequencies will be allocated through a bid, instead of a beauty contest.
This turning point was inserted in the amendment to the law decree (16/2012) on "urgent measures for tax simplification and efficiency" which confirmed that the available frequencies should be allocated through a bid which shall be set up within 120 days from the coming into force of the above decree. It will then be up to the Italian Communications Authority (Agcom) to approve a regulation for the bid, and such task will likely be on the table of the new Agcom commissioners.
So, if the law decree is finally approved, the bid should maintain a threshold of no more than 5 multiplexes for each operator, and Agcom will likely insert in the regulation additional rules to promote the separation between network operators and content providers, as well as rules to promote further technological innovation, with particular reference to the promotion of DVB-T2 e MPEG-4. To this end, the Government also decided that from January 2015 all television sets will have to be sold with DVB-T2 decoders incorporated (and at least MPEG-4).
The Government resolved that the frequencies may also be allocated also through "macro areas". How this principle is going to be effectively implemented is yet to be determined.
This decision leads to a number of comments and requests for indemnification by the operators and content providers involved in the terminated beauty contest, with challenges before the administrative courts and potentially wider constitutional law issues. So, which consequences for the content providers and network operators? We will debate also such issues during the Round Table with the Authorities at the University of Milan on Friday 27 April.
Please contact me (giangiacomo.olivi@dlapiper.com) if you want do discuss.