Swisscom Broadcast receives license for mobile TV

The decision has now been made: The Federal Communications Commission (ComCom) has awarded the nationwide license for mobile TV to Swisscom Broadcast. Swisscom Broadcast is to offer its first TV broadcasts via cell phone during the 2008 European Soccer Championship in the host cities of Basel, Bern, Zurich, and Geneva, thereby launching this new TV platform as soon as possible.

 The decision has now been made: The Federal Communications Commission (ComCom) has awarded the nationwide license for mobile TV to Swisscom Broadcast. It is to offer the first TV broadcasts via cell phone in the host cities of Basel, Berne, Zurich and Geneva during the 2008 European Football Championship and thus launch this new TV platform as soon as possible. The two companies Mobile TV Schweiz and Swisscom Broadcast had applied for the nationwide concession for mobile TV. The two applications were subjected to a thorough examination as part of a criteria competition, according to a statement from ComCom. The Commission came to the conclusion that both applications were very good. However, Swisscom Broadcast submitted the better application and was therefore awarded the contract. Due to its existing locations and experience with TV distribution in Switzerland, Swisscom Broadcast can guarantee a rapid roll-out of this new technology better than its competitor. The aim is to be able to receive TV broadcasts on cell phones as early as Euro 08.
Of great importance to the Commission is the obligation that the licensee Swisscom Broadcast must offer all TV broadcasters and telecommunications service providers equal access to this distribution platform on reasonable and non-discriminatory terms. This obligation is laid down in the license. This ensures that all telecommunications service providers and TV broadcasters can benefit equally from this new platform, according to the press release.
Bruno Bucher, CEO of Mobile TV Switzerland, which lost out, is disappointed with ComCom's choice. He questions the decision-making process: when announcing the award of the license to Swisscom Broadcast, the Commission had attached great importance to the fact that the company could guarantee a rapid roll-out due to its existing locations and experience with TV broadcasting. "It was known from the outset that Swisscom Broadcast had the antennas - which the people had effectively given it as a gift. If this criterion is so decisive, there would have been no need for the tender," says the CEO of Mobile TV Switzerland.
However, ComCom explains in its press release that various factors - i.e. not just the antennas - were decisive. In a detailed evaluation, it assessed the quality of the two applications on the basis of various criteria. According to ComCom, Swisscom Broadcast achieved better marks for the criteria "coverage/rollout", "concept/implementation", "coherence and credibility of the application" and also for the "business and service plan". Mobile TV Switzerland came out on top in the "contribution to media diversity" criterion. Swisscom Broadcast therefore submitted the better application, ComCom continues.
Mobile TV Switzerland is now considering legal action: The options are an appeal against the decision, going to the Competition Commission or expropriation proceedings over Swisscom Broadcast's antennas. Whether and which path Bucher's crew wants to take is still open. "We'll first let the worst of the anger fade and then consider how to proceed," said Bucher.
Bucher also stated that Swisscom Broadcast had behaved anything but fairly. In particular, all requests had been delayed. As an antenna operator, Swisscom Broadcast must comply with the law and provide non-discriminatory access to the antennas - even if it is in a competitive situation. Bucher said that he could prove that his company had not been treated in the same way as an internal department of Swisscom.
Swisscom spokesman Carsten Roetz contradicts this: "We reject the accusations". Swisscom has been cooperating with competitor companies in the cell phone sector for years with regard to antennas. This has gone smoothly - the company has not behaved differently in the case of mobile TV.
When Mobile TV Switzerland's license application was announced, Bucher stated that his company would offer mobile TV regardless of the licensing decision. Now, however, the situation has become more difficult. "Our investors are now naturally asking questions," explained Bucher. He is still interested in working with Swisscom to make the Made-for-Mobile-TV channel a reality.

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