KRRiTV begins radio license process
The National Radio and Television Council (KRRiTV), the media watchdog, kicked off the process to grant new radio licenses in 2001 by publishing press announcements earlier this month that revealed the number of available radio frequencies.
Included in the ads were all but five of the frequencies used by Poland's two largest private radio broadcasters. The five excluded frequencies, which are the subject of a dispute between the communications minister and the KRRiTV, could be included in future announcements, said council Chairman Juliusz Braun.
The press announcements, which appeared in dailies Gazeta Wyborcza and Rzeczpospolita, likely initiated the concession process for Radio RMF FM and Radio Zet whose licenses expire next May and June respectively since the majority of the published frequencies are identical to those already being used by the two stations. According to Przemyslaw Sypniewski, adviser to the communications minister, the KRRiTV might consider publishing further announcements, thus enabling other broadcasters to reapply for their licenses in December.
For months, the KRRiTV and the communications minister could not agree on the content of the press announcements, without which the new concession process could not have started.
In offering the new licenses, the communications minister had hoped to optimize the allocation of radio frequencies and reshape existing networks by redistributing the available frequencies. The minister argued that it was possible to spare 12 frequencies out of 103 used by Radio Zet and RMF FM. Those freed-up frequencies could be granted to other broadcasters without affecting the two stations, he said. But the council maintained that only five of the 12 frequencies listed by the minister could be redistributed without affecting the quality of the two radio stations. The KRRiTV then asked the Wroclaw-based Communications Institute to conduct an analysis of the stations' needs and to decide whether some frequencies could be given to other stations. According to Przemyslaw Sypniewski, the minister's adviser, the initial results confirmed the ministry's belief that 12 frequencies could be spared. This came as good news to radio broadcasters as too few frequencies are available on the market.
While Radio Zet and RMF FM breathed a sigh of relief at the institute's findings, for the communications minister it was only a partial victory.
"There will be additional radio frequencies available, that's important, but it's a partial success," Sypniewski said. "If the council had waited until Dec. 8, we could have received confirmation that even more free frequencies were available."
The ministry is still waiting for the Communications Institute's analysis of the spectrum regarding Radio Maryja and diocesan radio stations (including Radio Plus).
"By starting the license process for only two stations the council decided to treat the remaining broadcasters differently," Sypniewski said. "Those two, whose license process has already started, have become privileged. Allocation of frequencies to the remaining broadcasters will depend on the existing networks of the first two."
RMF FM is now preparing its license application. The deadline to apply for the new licenses is Dec. 14.
Last week the Senate passed a bill that will impose a 7% value-added tax (VAT) on newspapers and most magazine purchases starting next year. Previously, there had been no VAT on books, newspapers and magazines. However, books and some specialized magazines will remain exempt from the tax until 2003. The Senate rejected a minority motion submitted by Democratic Left Alliance (SLD) senators who lobbied for keeping the 0% VAT rate for all magazines and newspapers.
"(The bill is) bad news because imposing VAT on newspapers could result in price hikes for the press and considering the low purchasing power in Poland, press sales might go down," said Maciej Topolski, spokesman for Kielce-based press distributor Kolporter.
"On the other hand, it's possible that publishers will raise advertising rates, thus compensating for the tax," he said. Still, Topolski remained cautious. "Please remember that the advertising market has been slow this year, so it's hard to tell whether advertisers would accept such a scenario."
According to Dorota Nowak, press spokeswoman for Gazeta Wyborcza publisher Agora, the new bill could impact the newspaper's cover price. "But we're still talking to other publishers," she said. "I would also rather not talk about a possible impact on ad prices."
Meanwhile, Topolski said that a slow but continuous decline in readership, coupled with a worsening economic outlook, has been visible for some time in Poland. "It concerns even the most well-established papers and magazines," he said.
United Pan Europe Communications (UPC) shocked investors last week when its share price plunged an unexpected 24%. UPC, traded on the Amsterdam Stock Exchange and the NASDAQ, closed at O10.65 per share last Monday. By Tuesday, UPC's share price had dropped even further to O8.65, less than the company's initial public offering price of O12.18 in February 1999. Last week's all-time low share price is a far cry from the March 8 high of O83.32 per share. The Amsterdam-based cable company provides television, telephony and high-speed communication services. In Poland it operates through Wizja TV, a digital platform and cable network, and Polska Telewizja Kablowa, which recently changed its name to UPC Telewizja Kablowa.
In a statement released last Monday, UPC blamed market misconceptions that it might default on its $4 billion credit facility as the reason for the stock's collapse.
According to a UPC statement, under the terms of its loan agreement, the company is required to undergo a revenue check every six months. It said it passed the last such check on Sept. 30.
