Reform of Television Broadcasting Legislation in Chile: Towards Convergence? ACORN-REDECOM III Conference September 4-5, 2009 CIDE, Mexico City Lucas Sierra Centro de Estudios Públicos (CEP) & Universidad de Chile
Television broadcasting regulation in Chile as good example of regulatory divergence : Television broadcasting has its own legislation, separated from the telecommunications legislation Television broadcasting has its own regulatory body (CNTV), separated from the telecommunications regulatory body Television broadcasting has its own licensing regime, separated from the general wireless licensing regime Television broadcasting has a state-owned player (TVN), which is the only state-owned player in the telecommunications and media arena
Some facts • Population: 16.5 million, GDP per head US$ 13,000 (ppp) • Television broadcasting coverage and reach: about 95% of Chilean households have at least one TV set. Pay TV penetration: about 40% of households (cable and satellite TV) • There are seven main channels, five with national coverage • Licenses are awarded on a first come first served basis, for an area service, and last 25 years (renewable). BUT licenses awarded up to 1992 are perpetual (42% of the total)
Some facts Analogue TV is mainly broadcast in VHF band. The bandwidth: 6 MHz (NTSC): • Channels 2, 3, 4 between 54 MHz and 72 MHz • Channels 5, 6 between 76 MHz and 88 MHz • Channels 7, 8, 9, 10, 11, 12, 13 between 174 MHz and 216 MHz Digital TV will be broadcast in UHF band (vacant): • From 512 MHz to 608 MHz: TVD • From 614 MHz to 698 MHz: TVD • From 698 MHz to 806 MHz: shared between TVD and other services (mobile TVD, mobile broadband, 3G, etc.)
There are no regulatory distinction in terms of the geography covered by any given broadcaster. The Chilean territory is divided into several “areas of service”. The licensing regime is peculiar: 42% of current licenses are perpetual . The rest last 25 years (can be renewed). TV broadcasting licenses are integrated : The right to broadcast (to put audiovisual content in the airwaves). The access to the radio spectrum to do it.
Facing digitalisation TVD standard: decision still pending (postponed and postponed). Government sent to Congress two draft bills in November 2008: State-owned broadcaster TVN TV broadcasting law The one on broadcasting law introduces regulatory distinctions according to coverage. • National • Regional • Local • Community It reserves at least 40% of the available radio spectrum for TV for regional, local and community. Distinction important for subsidies (regional, local and community). Integrated TV broadcasting licenses are divided into two: • TV broadcasting license (the right to put audiovisual content in the airwaves • Intermediate service license (access to radio spectrum)
Intermediate service. A category of the Telecommunications Law “Se rvices provided by a third party, by means of her own infrastructure, with the purpose of providing for the transmission or commutation requirements of telecommunications operators in general ” Current TV broadcasting licensees get both licenses: To put audiovisual content in the airwaves The access to the radio spectrum to broadcast that content and other contents TV broadcasting business diversifies: Integrated TV broadcasters with two licenses (as intermediate service licensees they can transport the signal of other broadcasters). Simple TV broadcaster licensees (with the right to put audiovisual content in the airwaves but without access to the radio spectrum. They have to negotiate this access). Simple intermediate service licensees (with no right to put audiovisual content in the airwaves but with access to the radio spectrum to carry other ｴ s signals).
Perpetual licenses As for the current TV broadcasting licensees with perpetual licenses, the draft bill follows the right principle: TV broadcasting license is a title to use the radio spectrum but not a title to own the radio spectrum. What is perpetual? The right to broadcast one TV signal, but not the 6 MHz they are using today to do it. These licensees will be granted 6 MHz but for 20 years. If they do not want to renew it at the end of this period, they will be given the radio spectrum necessary to broadcast one signal, perpetually.
Towards convergence: yes, up to point Intermediate service is a good step. Yet it is just one, there are more steps pending because divergence remains: General telecommunications intermediate service licenses last 30 years, but those related to TV broadcasting last 20 years. Why the difference? Broadcasting license. Broadcasting without radio spectrum? Does it make sense to have it now and tomorrow? If the ways of distribution of audiovisual content increasingly are other than free-to-air broadcasting, how to distinguish between audiovisual contents for regulation? (New divergence: TV will be the only one with two titles). TV regulatory body. Why not to have the same framework for the rest of the electronic media and of telecommunications: Content: courts Infrastructure: Subtel
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