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The Tariff for the Digital TV Signal Can Increase in 2022. TRM: We Would Not Like to Be Seen as a Milking Cow That Keeps Money in a Spare Bag

21 December 2021
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The draft law which includes new mechanisms for granting state aid to private broadcasting media service providers eager to broadcast via the Multiplex digital system has caused a wave of dissatisfaction among the media experts and Teleradio-Moldova (TRM) representatives. They regard the suggestions as the state assistance to Radiocomunicatii, a state enterprise which may face financial difficulties after the analogue system ceases working. In their replies, the heads of the enterprise affirm that the expenses must be covered for the citizens to have access to information.
 
During the debates, Vitalie Boboc, Deputy Head of the Communications Infrastructure Department of the Ministry of Economy and Infrastructure (MEI), remarks that the project also stipulates the deadline for transition to digital terrestrial television (January 1, 2022), the mechanisms for supporting Multiplex A with the national coverage and TV channels which cover socially important, cultural, scientific, and other issues. The official affirms that this project is intended for taking advantage of the analogue signal frequencies for applying the 5G technology, which could bring approximately 30 million Euros to the budget from the fees paid for obtaining the licenses.

He mentions that the project creates possibilities for the local channels which currently use the analog signal to continue their activity and “provides the possibility of state subventions for the Multiplex broadcasting tariffs, for the reason that a number of broadcasters invoke the amount of the tariff as a factor which discourages them from using the Multiplex capacity.” “Since early 2021, three TV channels have already quit the Multiplex. If we are going to apply the real tariff derived from the costs of supply for the Multiplex, the other channels than the two public ones – Moldova 1, Moldova 2 – and TVR Moldova, and probably GRT will give up the Multiplex because they are unable to afford it financially,” Vitalie Boboc specifies.

The MEI representative adds that the project also stipulates granting state allowances to media service providers which intend to join the Multiplex. “Hence, it is expected that the state allowance equal to 25 million lei will be granted to the Radiocomunicatii State Enterprise during the entire 2022. Part of this amount, 13.5 million lei, shall be granted by the Ministry, and the rest shall be redistributed from the amounts intended for Teleradio-Moldova, for the reason that they will not need such enormous amounts for broadcasting programs, besides, the tariff for broadcasting programs will decrease about four times as compared to the current amount, and they will still be offered state subventions,” Vitalie Boboc explains the concept.
 
According to him, the project is also intended for providing information for remote urban areas and the Transnistrian region residents.
 
RENAMING THE PROJECT “STATE ASSISTANCE TO RADIOCOMUNICATII”
 
Yet some media experts do not share the ministry’s optimism. For instance, Ion Bunduchi, Executive Director of the Electronic Press Association (APEL), claims he does not fully comprehend the reasoning of the project. “In my opinion, this draft law should have been entitled ‘a draft law on the state assistance to Radiocomunicatii.’ We have founded these multiplexes, and now, we have no idea what can be done about them because the slots are incomplete. But why are they incomplete? Yes, they’re quite expensive. I still haven’t found the answer to the question why this service costs 5600 Euros per month. Why no one organized an international competition to build multiplexes and maybe draft another business plan? And now, we have to pay subventions for Radiocomunicatii from public money, because the suppliers are reluctant to go there for the reason that they don’t have this amount,” Ion Bunduchi says.
 
The media expert emphasizes the TV channels’ decreasing interest in the Multiplex. “This draft law will fail to bring the suppliers to the national Multiplex A, B, even if it is voted for. But nothing is written clearly enough about the regional one to let us know who wants the money and how it will be recovered,” Ion Bunduchi affirms.
 
Petru Macovei, Executive Director of the Independent Press Association (IPA), describes this draft law as a “dangerous one.” “At first glance, it looks like a scheme of taking 25 million lei from TRM and giving this amount to Radiocomunicatii,” he replies. He also pays attention to the suggestion of granting state subventions “to certain broadcasting media service providers unconditionally.” “With all due respect to my colleagues from Canal Regional, why should they be provided any assistance regardless of any criteria? It will distort the market to even a greater extent than nowadays,” Petru Macovei remarks. According to the IPA representative, in the European countries, state assistance is granted based on clear criteria, such as journalistic product quality.
 
TRM REACTION: “WE WOULDN’T LIKE TO PAY FOR ANY IMAGINARY CONSTRUCTIONS”
 
Vlad Turcanu, General Director of Teleradio-Moldova (TRM), also seems disturbed by the suggestions on redirecting the budget of the national public media service provider to Radiocomunicatii. “We will definitely not agree to pay for any imaginary constructions from the money owed to Teleradio-Moldova without even knowing whether they are functional enough. It is unclear how the prices were formed, at least to me,” Vlad Turcanu says.
 
The TRM representative adds that, according to the information he has, the prices for digital signal broadcasting services could increase next year. “We had 13 million lei which were paid for the analog signal in 2021, and there were supposed to be 23 million lei,” Vlad Turcanu mentions.
 
He demands clear pricing calculations and adds that his team would consider the suggestion on continuing broadcasting services in the analogue system if a decision to extend that system is taken. “We will discuss whether we could stay in the analog system after January 1. This is our own decision, and we will discuss it to reach a solution. (...) We would not like to be seen, I’m sorry for the expression, as a milking cow that keeps money in a spare bag and spends it unthinkingly, because, at TRM, the situation in terms of wages and the infrastructure we need to fulfill our public mission is drastic,” Vlad Turcanu also says.
 
CALCULATIONS FROM RADIOCOMUNICATII
 
On the other hand, Mihai Iacob, General Director of Radiocomunicatii, explains that, after the analog signal covered by current expenses ceases the cost for maintaining the infrastructure and using the digital signal will inevitably increase. “The costs of supply in the Multiplex, regardless of whether it is a single TV channel or 18 TV channels, amount to 3.2 million lei per month. Once you press the button and start broadcasting in the National Coverage Multiplex, it already has such expenses,” Mihai Iacob says.
 
According to him, if only three TV channels remain in the Multiplex, the amount of 3.2 million lei will be distributed for each TV channel proportionally. “If this project is not accepted, it’s not a problem. I just won’t sign any contract until I see the situation with this draft law, and afterwards, those who join the Multiplex will share the amount of 3.2 million,” Mihai Iacob specifies.
 
According to him, the estimates demonstrate that, for 15 TV channels, the costs will amount to approximately 11.000 Euros per monthly slot, and about 8.400 Euros for 18 TV channels. “We calculated 25 million lei for 18 TV channels, which means paying 3.000 Euros to each of them, including TRM and TVR Moldova. And then, the state does not provide governmental assistance for Radiocomunicatii, the enterprise does not need state assistance to cover the costs for their services. If there are no beneficiaries, all the expenses will be borne by TRM and TVR and, obviously, by the state,” Mihai Iacob adds.
 
The draft law also includes a suggestion to suspend the analog system since January 1, 2022. In this context, Eugeniu Ribca, the BC member, suggests extending the deadline until March 31 next year to provide a greater number of citizens who own old TVs with digital signal converters and settle other issues. The suggestion was also examined earlier by the Broadcasting Council at the meeting, but the majority of the BC members rejected it.