We will lose 300 million euros of revenues

TDF, who holds 75 of the market of the diffusion of digital terrestrial television (DTT), was initially to be free on April 1 to fix its tariffs and conditions to its competitors. A perspective which was a thrill of smaller players like Towercast or OneCast. But at the request of Constable of telecoms (Arcep), the competition authority has issued a contrary opinion. In an interview with the "Echos", Patrick Babin, CEO of TDF, rises against this decision which threatens it the economic model of its society.

The Constable of the Telecom wants to increase mentoring of TDF rates, while this process ended this month. What do you think

The project of the authority of the telecoms in the new regulation of three-year cycle is not justified and goes against what is observed on the market of the distribution. We are the European countries where there is more competition in TV broadcasting. In France, the contracts between the broadcasters with TV channels run over five years against ten or even twenty years in other countries. Another example, in most European countries there is never more than one or two actors in the distribution. In France, there are five: TDF, Towercast, OneCast, Canal (diffusion) and, more recently, Itas Team. Our competitors have 25 market share on the diffusion of digital terrestrial television (DTT). And this figure tends to increase. Finally, our rates are among the lowest in Europe with the exception of the Spain. They can be up to 20 cheaper than in other countries. We have communicated very recently these data to the CSA and Arcep, the competition authority. All these reasons that it is very ironic to strengthen the regulation of the market.

The European Commission will have to pronounce on this matter. Are you still able to be heard

We hope of course because the Panel recommends no longer regulate the TV broadcasting sector. Arcep is this time to go further in the regulation of prices, in particular on broadcast sites that it considers cannot be replicated by competitors antenna on the Eiffel Tower or the pic du Midi, Editor's note. Under these conditions that create uncertainty, we wonder how to make our investment decisions, including those needed for the digital transition. It is an element of additional uncertainty just disrupt the already tense, but playable schema in my view, of the extinction of the analogue television scheduled for the end of 2011.

If your rates must fall how will you pay off your debt

This is not the subject. For the time being, we are only paying the interest on the debt. Arcep new proposals are likely to increase uncertainty about our ability to contribute fully to the transition to all-digital. At the same time, between 2010 and 2011, our sales will drop 40 because the television stations will stop broadcasting in analog. We will lose 300 million euros of revenues.

Today, the chains are obliged to pay the costs of double diffusion. You know that this would not last...

Of course, but it should be noted that, before the TNT, the chains spending to TDF approximately EUR 350 million per year to be broadcast in analog. In the transition to all-digital, all of the strings in the TNT spend more than EUR 200 million for the whole of the actors. In these conditions, our economic equation becomes complicated to solve. Regarding terrestrial digital radio, it seems to us premature and curious to expand the framework of regulation to this technology which does not yet exist.