PT and the three FTA operators reach agreement for Digital Terrestrial Television contest

Portugal Telecom announced today that it has reached an agreement with the three free-to-air (FTA) operators – RTP, SIC and TVI – in connection with PT’s bid in the upcoming Digital Terrestrial Television (DTT) contest. The three FTA operators have signed a memorandum of understanding (MOU) with PT agreeing to the terms and conditions under which the transmission of the FTA signal for the four channels will be delivered during the simulcast period as well the digital transmission up to the end of the licence period.

The agreement announced today results from the long-standing good working relationship between PT and the three FTA operators, which includes the services rendered under the existing concession contract for the distribution of the analogue FTA signal. In addition, the MOU announced today reflects the confidence of the three FTA operators on the robust technical and financial plan to be presented by PT in the Mux A contest. PT’s recognised engineering know-how, financial strength and commitment to have good digital coverage in Portugal provide a strong guarantee that the conditions to allow for the analogue signal switch-off and the overall success of DTT services in Portugal will be achieved.

The DTT contest has been organised in two parts: Mux A – transport of the FTA signal (4 existing FTA channels plus a fifth FTA channel to be attributed in 2009), and Muxes B to F – five frequencies for a Pay-TV operator (two nationwide and three regional). The 15-year licences attributed for Mux A and Muxes B to F will run until the end of September 2023.

As part of the MOU signed between PT and Media Capital (TVI), PT will operate and manage Media Capital’s analogue signal transmission network (RETI) up until the end of 2011, subject to PT winning the Mux A contest, with the aim of transferring the transmission business until such date. This agreement will allow for the extraction of synergies between these two networks, as well as the IPTV and Satellite platforms of PT, whilst ensuring that future investments will be directed towards the development of new services that will be critical for the future success of DTT in Portugal.