A PTS analysis shows that Teracom is a stakeholder with significant power in the wholesale market for free television broadcasting in the terrestrial network. ‘Free television’ refers to channels that can be received free of charge by end users, without requiring a subscription. Customers who purchase this broadcasting service from Teracom include SVT and TV4. In order to deal with problems related to competition in the market, PTS proposes continued regulation of the free television market.
“The proposed regulation aims to eliminate the effect of a lack of competition for free television broadcasts, for example a possibility to overcharge for the broadcasting service. In its turn, regulation helps to uphold the same range and quality for free television consumers,” says Karoline Boström, head of section at PTS’s Competition Department.
In the pay television market, PTS has observed potential for increased mobility among end users between the various broadcasting platforms, that is to say the terrestrial network, satellite and xDSL. This leads to an increased competitive pressure at a wholesale level, which is why PTS proposes that pay television broadcasts in the terrestrial network should no longer be regulated.
The proposed decision will be subject to consultation during the spring and summer of 2009 with market stakeholders, the Swedish Competition Authority, the Swedish Radio and TV Authority, the European Commission and other European regulatory authorities. The final decision will be taken in the autumn of 2009.
Background
PTS issued decisions in 2004 and 2005 concerning the obligations that currently apply in the various sub-markets of the electronic communications market. Teracom was imposed with certain obligations in the broadcasting market, or in other words the wholesale market for broadcasting of television and radio.
The Agency is now implementing the second generation of market analyses and obligation decisions owing to recommendations issued by the European Commission. The European Commission recommends seven product and service markets as applicable for ex ante regulation. The broadcasting market is no longer included among these markets. However, under the EU regulatory framework, PTS is obliged to conduct a new market review and a review of decisions made previously. If there are still competition problems in the market, PTS will issue decisions concerning new obligations.
Read the proposals (only in Swedish)
For more information, please contact:
Karoline Boström, Competition Department, tel. 0736-44 56 20
PTS's Press Office, tel. 08-678 55 55
The Swedish Post and Telecom Agency (PTS) monitors the electronic communications and postal sectors in Sweden. The term ‘electronic communications’ includes telephony, the Internet and radio. The Agency works with consumer and competition issues, efficient utilisation of resources and secure communications. Read more at www.pts.se.