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Brussels Still Mulls Suing Bulgaria over Shady DTT Mux Deals 16.12.2011 18:00

<p>The European Commission is still considering whether to take Bulgaria to the EU highest court over the controversial tenders for the operation of what will be the country's DTT multiplexes.

The European Commission is still considering whether to take Bulgaria to the EU highest court over the controversial tenders for the operation of what will be the country's DTT multiplexes. "The issue is still being discussed. There is no final decision yet, the dialogue between the Bulgarian government and the Commission continues," Kristalina Georgieva, Bulgaria's Commissioner in Brussels, said in an interview for Trud daily. The European Commission launched in May this year a probe into the conflicting requirements for the eligible bidders for the multiplexes, which drove away Austria's Oesterreichischer Rundfunksender GmbH & Co KG (ORS). According to reports the EU executive will bring the case to the Luxembourg-based European Union Court of Justice, demanding that the deals, clinched in 2009 by Latvia-based Hannu Pro and Slovakia's Towercom, be declared void. Unless Bulgarian authorities convince the court that they have done their best to secure fair and legal tenders and the judges rule in favor of Bulgaria, the country will be forced to pay hefty fines, worth up to EUR 200.000 per day. It seems that Brussels will delay its verdict until the next review of infringement procedures in January since the government in Sofia surprisingly decided to hold a contest for yet another multiplex in 2014. Analysts have described the move as a mere eye-wash. The previous Socialist-led ruling coalition awarded in 2009 licences for a total of six multiplexes to Latvia's Hannu Pro and Slovakia's Towercom. Austria's ORS also participated in the contests, but was forced to drop out because it is a major shareholder in the Austrian national television ORF. It was not immediately clear who stands behind the foreign investors Towercom and Hannu Pro, but soon the names of Tsvetan Vassilev, head of Bulgaria's Corporate Commercial Bank and Irena Krasteva, a media mogul, believed to be funded by the bank and ethnic Turkish leader Ahmed Dogan, propped up in all deals. The sale of 50% stake in Bulgaria's radio and television broadcasting unit NURTS to Cyprus-based international financial investor Mancelord Limited was wrapped up at the end of August this year. The deal price was a whopping EUR 57 M. NURTS covers nearly all of Bulgaria with its network of radio and television broadcasting services. It has a key position on the analogue broadcasting market through its network of TV towers and retranslation facilities covering the entire territory of the country and transmitting the programs of the major TV and radio operators. Mancelord Limited is represented in Bulgaria by Bromak Ltd., majority shareholder in Bulgaria's Corporate Commercial Bank Ltd. Bromak also holds a stake in the media group of mogul Irena Krasteva, who is believed to be funded by Corporate Commercial Bank. At the end of July last year, after the center-right government of Boyko Borisov came into office, the Bulgarian communications watchdog picked Latvia-based Hannu Pro to operate what will be the country's public service DTT multiplex. The decision triggered dismay and disagreement among the other bidders, which included the telecoms BTC and Vivacom. The future operator of the multiplex, which will distribute the digital programs of the national state-owned television BNT and radio BNR, received a permit for 15 years and will provide services to 12 cities across the country - Blagoevgrad, Burgas, Varna, Vidin, Kardzhali, Pleven, Plovdiv, Russe, Smolyan, Sofia, Starta Zagora, Shumen. Media reports claim no other but banker Tsvetan Vassilev is the man behind Hannu Pro, probably because the bank he heads provided the bank guarantee for the Latvian company. The link however can not be legally proven. The other player on the market -Slovakia's Towercom - was recently acquired by NURTS Bulgaria, the joint venture between the Bulgarian Telecommunications Company, rebranded as Vivacom, and Cyprus-based international financial investor Mancelord Limited. At the end of 2010 the analogue switch-off in Bulgaria was delayed by two years and is scheduled to be wrapped up by the beginning of 2015.


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 Source: www.novinite.com
Invest.bg 16.12.2011
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