Telenet to appeal CRC's final decision to regulate the Belgian broadcasting market

Today, the CRC (Conference of Regulators) submitted a formal decision to regulate the Belgian broadcasting market.

CRC missed opportunity to align its regulatory decision with the Commission's comments

Telenet regrets that the CRC did not use the opportunity to align its amended draft proposal of May 20, 2011 to the fundamental concerns echoed by the European Commission on June 20, 2011. The Commission formally criticized the regulator's approach to impose a number of wholesale obligations on the basis of an analysis of the retail market, which is, in principle, contrary to EU law. In addition, the Commission expressed its doubts on the fulfillment of the 3-criteria test, hence questioning the need for regulatory intervention. Furthermore, the Commission labeled the broadband internet resale obligation as potentially disproportionate, whilst formally questioning the necessity and proportionality of imposing the analog TV resale remedy given its declining importance. Finally, the Commission had serious concerns with the fact that Belgacom would be able to benefit from access to analog TV resale as this would distort competition and put a brake an innovation and investment.

Telenet to consider all legal options to appeal the decision

Given the short timeframe between the European Commission's letter of June 20, 2011 and today's decision from the CRC, Telenet questions whether the CRC has effectively "taken the utmost account" of the European Commissions' comments pursuant to Article 7(5) of the Framework Directive. If the CRC would not or insufficiently have taken the Commission's comments into account, the final decision will be unlawful.

On June 23, 2011, the Dutch regulator OPTA concluded that the Dutch broadcasting market should not be subject to ex ante regulation based amongst others on the declining importance of analog TV, increased competition in the digital TV market and the potential impact from over-the-top TV on cable's market share. Telenet believes that OPTA's main arguments not to regulate broadcasting over cable are also applicable to the Belgian broadcasting market and hence Telenet regrets that the CRC decided not to expand its narrow definition of the broadcasting market.

Interested parties may have this decision suspended and/or annulled before the Brussels' Court of Appeals. Telenet will now look into all legal options to appeal the decision.

Strong competition does not require regulation

Telenet has always been convinced that the current market situation does not constitute any consumer harm. The price for basic cable TV in Belgium is already regulated at retail level. The regulation of analog TV also appears outdated as no more than 28% of the population is still watching analog TV only. Digital TV continues to expand thanks to the highly competitive dynamics between various operators, which include amongst other Belgacom, Scarlet, Billi, Mobistar, TV Vlaanderen and cable operators.

Cfr Press Release