The European Commission (EC) says it has opened an in-depth investigation to assess whether public support that the Czech Republic plans to grant in favour of DTT operators is in line with EU State aid rules.
The beneficiaries of the measure would be the Czech public service broadcaster Ceska televize, and two private DTT operators, Ceske Radiokomunikace (Cra) and Digital Broadcasting.
In a statement, the EC adds that in 2016 and 2018 it received two complaints alleging the incompatibility with EU State aid rules of the Czech Republic’s plans to compensate DTT operators for simulcasting DTT programmes on (i) the original networks using DVB-T/MPEG-2 standards and (ii) the new networks using more performant DVB-T2/HEVC standards. The complainants claimed that the measure would unjustifiably benefit the DTT operators as the aid would ultimately finance their upgrade from DVB-T/MPEG-2 to DVB-T2/HEVC standards.
In July 2021, the Czech Republic notified the EC of its intention to compensate DTT operators for the cost of simulcasting during two periods: March 1, 2017 to March 18, 2020, and 1 July 1, 2020 to October 31, 2020. The measure, which has a budget of around €18 million (approximately CZK473 million), aims to ensure that DTT operators release the 700 MHz band from DTT services. The measure will cover the capital and operating expenditure relating to (i) upgrading the infrastructure from DVB-T/MPEG-2 to DVB-T2/HEVC standards, and (ii) operating the upgraded networks in parallel to the original networks during the simulcast period.
The EC goes on to say that at this stage, based on its preliminary assessment, it has doubts on whether the measure is in line with EU State aid rules. Its in-depth investigation will seek to find out if the measure:
- Incentivises DTT operators to undertake the costs of upgrading networks and simulcasting television programmes
- Brings a material improvement that the market alone would not have delivered in the absence of public support
- Is the most appropriate tool to ensure a seamless release of the 700 MHz bandContains sufficient safeguards to ensure that the aid amount is limited to the minimum necessary.
The investigation will give the Czech Republic the complainants and other interested third parties an opportunity to submit comments. It does not prejudge the outcome of the investigation.
