Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Friday, October 16, 2015

Uruguay Media and Telecommunications Map 2015

New government, delayed media law and digital switch-off impact in 2015

Uruguay Media and Telecommunications Map 2015 - Credit: © 2015 Convergencialatina
Uruguay Media and Telecommunications Map 2015 - Credit: © 2015 Convergencialatina

In this edition of the map, there are less changes. In addition, the profile of the president-elect, possibly dilate progress on de-monopolization and greater pluralism which substantially alters the composition of the providers.

The Chamber of Deputies approved in December Act Audiovisual Communication Services (LSCA), enabling the regulatory process by the Executive. However, more than a dozen resources for unconstitutionality bury the possibility of changes in the short term.

The new president, Tabare Vazquez, 19,307 LSCA included as a priority in his campaign, but to take on 1 March this year stated that await the decision of the Supreme Court of Justice to proceed with regulation.

Article 51 of a total of 168 contiene- of the Act provides: "The monopolies and oligopolies (...) conspire against democracy by limiting the plurality and diversity which ensure the full exercise of the right to information of individuals. It is the duty of implementing appropriate measures to prevent or limit the existence of formation of monopolies and oligopolies (...) and to establish mechanisms for State control measures. "

Limitations to the holders of broadcast radio and television (Article 53) and pay television holders (Article 54) are also specified. But given the time to adapt the law posed, the market will remain, at least for 2015, featuring the same six families: Pombo, Cardoso, Scheck, Romay, De Feo and Fontaina.

Among the opponents of the law to justice, Directv stands. The subsidiary of AT & T filed an appeal on March 2, in which he considers unconstitutional, among others, Article 55, which states that the total subscribers for TV companies pay to the national level may not exceed 25% of all households with the service (to June 2014 already owned 21%). Also it limited to 35% "of total households with pay TV in each area where there are other authorizations or licenses shorter-range".

DirecTV also complained of clause stating that "the natural or legal persons providing audiovisual media services regulated by this law may not, in turn, provide telecommunications services for telephone and data transmission" (Article 56) . In particular he emphasized that the government's National Telecommunications Administration (Antel) is not subject to these regulations in their TV service via the Internet lend (Article 1).

Among the points that were used to point out as unconstitutional the Media Law are also obligations to the channels to allow free use of up to fifteen minutes a day "campaigns of public good" (Article 95a) and the chair of the Council of Audiovisual Communication by the president (Article 74).

They also consider exaggerated the extension of hours of child protection and provisions tend to protect children (Articles 29 to 34).

In this context, the solutions against the concentration of economic groups see article 2 of the law vanish and the possibility of convergence models remains to be solved by the authorities. Moreover, the twists and turns in appointing Antel authorities following the departure of Carolina Cosse, highlights the political struggle in the field of telecommunications.

In parallel, Uruguay established the analogue switch for 21 November 2015. The emissions are enabled and operating digital channels 4,10 and 12 in Montevideo. On probation, also in the capital, Uruguay National Television. City TV will be able in the coming weeks. Private channels VTV Consortium Giro and should be ready in October 2014 but twice requested extensions by operational difficulties and begin broadcasting only in October this year. Meanwhile, inside multi-channel testing began, as noted by the Regulatory Unit for Communication Services (Ursec) to Convergencialatina, without detailing the consortia involved.

Uncertainty appears as the only common factor among industry players, which in many cases decided not to rule on the law and its possible impact in the Uruguayan market. Thus, the network of media also promises great changes for this year.

To purchase Uruguay Media and Telecommunications Map 2015, contact suscripcioneslatam@convergencia.com.

Comprar mapa