Brussels, 26 April 2024
The European Commission has approved, under EU State aid rules, Slovakia’s plans to compensate digital terrestrial television (‘DTT’) network operator Towercom for its direct costs incurred for the release of the 700 MHz band.
Under the measure, Towercom will receive a compensation of €11.7 million. The compensation will cover the costs of the migration of terrestrial television services from the 700 MHz frequency band to lower frequencies, which will allow the 700 MHz band to be used for terrestrial systems that can provide wireless broadband services. This follows a Decision of the European Parliament and the Council pursuing the release of the 700 MHz band in favour of mobile communications by June 2020 and allowing adequate compensation of DTT operators in accordance with State aid rules.
The Commission assessed the Slovak measure under EU State aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the European Union which enables Member States to support the development of certain economic activities under certain conditions. The Commission found that the measure is necessary and appropriate to achieve the objective pursued. Moreover, the Commission found that the measure is proportionate, as the compensation is limited to the costs that are necessary to release the 700 MHz band and avoid significant interferences which would have caused disruption of DTT services. The Commission thus concluded that Towercom will not be overcompensated. In addition, the Commission found that the negative effects on competition are limited and outweighed by the positive effects of the aid. On this basis, the Commission approved the Slovak measure under EU State aid rules.
The non-confidential version of the decision will be made available under the number SA.55953 in the State aid register on the Commission’s competition website, once any confidentiality issues have been resolved.