Activities:

The Communications Regulatory Authority deregulates broadcasting markets

August 1, 2023

The Communications Regulatory Authority (CRA) has decided to deregulate the markets for broadcasting services – Broadcast Transmission Services and Broadcast Transmission Facility Services – and to lift the obligations imposed on the Lithuanian Radio and Television Centre and “Telia Lietuva”.

“With the changing market structure, the growing number of service providers and the growing number of alternatives, such as the development of online radio and TV, broadcasting markets are becoming competitive.  This removes the need to regulate these markets”, explains Jūratė Šovienė, Chairwoman of the CRA Council.

In Lithuania, TV and radio broadcasting is provided in different ways, for example via digital terrestrial television, cable TV networks or the internet.  Television viewers and radio listeners choose their preferred method of receiving the programmes on offer, depending on where they live.

CRA has been analysing the competitive environment in the broadcasting markets since 2005.  Following the last market investigation of the market for Broadcast Transmission Services and Broadcast Transmission Facilities, the CRA found that competition in the broadcast markets is effective and lifted the obligations imposed on “Telia Lietuva” and the Lithuanian Radio and Television Centre to provide access to providers of broadcast transmission services, to ensure non-discrimination, transparency, price control and cost accounting, and to ensure the separation of accounting.

Both of these service providers provided regulated digital terrestrial television transmission services to commercial broadcasters to enable viewers to see TV programmes such as LNK and TV3, while the Lithuanian Radio and Television Centre (LRTC) provided regulated access to the necessary infrastructure, such as TV towers, to radio and TV broadcasting providers.

Will operate in a free market environment

The CRA’s decisions to deregulate the broadcasting markets enter into force on 1 June. After the expiry of the agreements, participants in the broadcasting markets will operate under free market conditions and will be free to agree their own terms of service.

“In the absence of regulation, the parties will have more flexibility to agree on mutually acceptable solutions based on their individual needs.  If the market participants fail to reach an agreement, they have the right to apply to the CRA with a request to resolve the dispute in a mandatory early out-of-court procedure”, emphasises J. Šovienė.

Latvia has not regulated its broadcasting markets since 2007, as have Estonia, Germany, the Netherlands, Italy, Slovenia and other countries.

Updated on 2023-08-01