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Government advertises DTT multiplex contract

RTE Network up for sale - expected to be completed in August

Allied Irish Banks Corporate Finance, acting on behalf of the Department of Culture, today published a call for expressions of interest in the Digital Terrestrial Television Multiplex Operator's licence. Interested companies have two weeks to write to AIB telling them exactly why they want the licence, including financial and ownership details of the applicant company, along with a fee of £5000 if they wish to bid. On 8th June, the companies having expressed interest will recieve the formal tender document and be invited to submit their bids. This step is the first stage in the selection of the licencee, who will provide and market the retail DTT service comprising of six muxes. One of these muxes will be provided by RTE, the second shared between TV3 and TG4, and the third will be for services "wholly recievable in Northern Ireland". The operator has discretion over what to include on the remaining three muxes, although no doubt the Minister will pay attention to what kind of services are being proposed by the applicant companies. No doubt if they promise a 24 hour ceili music channel this will guarentee them the licence!!!!!!!!! (only joking)

Meanwhile RTE on Tuesday issued what is effectively a "prospectus" to bidders interested in acquiring its transmission arm, Digital Television Transmission Network Ltd - or Netco, as it is now being reffered to. RTE intend to issue the formal memorandum of sale to bidders in mid-June, leaving two months for formal bids to be submitted and negiotations to be concluded with the preffered bidder, whoever that may be. The stake being sold is 68% - a staff ESOP will hold 5% and and RTE will hold the remaining 28%. Netco will make its money from transmitting the programmes of RTE, TV3, Today FM, and the major ILR stations. It will also build the digital transmission network which will transmitt the Digital Terrestrial Television service provided by the successful bidder for the multiplex licence. The Irish Independent reports that there have been a number of expressions of interest in Netco, from private equity investors and transmission tower operators. (Castle-Crown and ESB are however known to be front runners.)

ICDG will cover both contests in detail, paying more detailed attention to the retail multiplex licence competition.

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