Bundeskartellamt approves DVB-H cooperation in return for commitments made by T-Mobile, Vodafone and O2

The Bundeskartellamt intends to end its examination under competition law of plans by the three mobile phone network operators T-Mobile, Vodafone and O2 to set up a joint venture to create and operate a mobile television broadcasting platform based on the DVB-H standard. The project has already been cleared under the merger control procedure on 13 August 2007 (cf. Bundeskartellamt press release of 18 July 2007).

As part of the planned DVB-H platform operation, T-Mobile, Vodafone and O2 wish to jointly provide the technical services which are necessary to produce and transmit digitalized TV signals under the DVB-H standard, and to purchase programme content for mobile TV. The project of the three mobile phone network operators is connected with the invitation for tender for DVB-H frequencies and TV content for these frequencies put out by the German Regulatory Authority and the media regulation authorities of the Länder.

According to the Bundeskartellamt’s preliminary assessment the cooperation would lead to restraints of competition, especially in the newly emerging market for mobile broadcasting. However, T-Mobile, Vodafone and O2 have offered commitments which, according to the Bundeskartellamt’s current evaluation, are sufficient to eliminate the existing competition concerns. The commitments offered include the following main points:

- (Compulsory) combinations of DVB-H and TV/video offered via mobile networks (e.g.3G) may not be made.
- The platform’s customers are free to choose programmes and programme packages provided that there are no binding provisions under media law.
- The “Electronic Service Guide“ (ESG) will only be operated jointly for basic data.
- DVB-H enabled devices must also be able to contain receivers for other mobile TV standards (e.g. DMB).
- DVB-H reception must also be made possible on devices other than mobile phones. There will be no compulsory combination with mobile phone contracts or pre-paid credits.
- Upon request the platform’s specifications for devices must be submitted to the Bundeskartellamt.

The companies concerned and third parties admitted to the proceedings have until early October 2007 to comment on this. The Bundeskartellamt intends to issue a decision declaring the commitments binding.