The delayed process of freeing up 700 MHz frequencies from television operators will cost Albanian taxpayers at least another 5.1 million euros – money that is expected to be divided among six digital media network companies, according to a draft law that the government recently submitted for public consultation.
The 700 MHz frequencies, also called Digital Dividend Two (DD2), are radio waves that are currently used by televisions for broadcasting. The government intends to free them up and transfer them to new 5G mobile networks.
The draft law "On the release of Digital Dividend Two (DD2) frequencies" foresees that the financial compensation of 5.1 million euros will be divided among the operators of national digital networks licensed by AMA, which includes the public operator RTSH, TV Klan, Top Channel, Digitalb, ADTN and Media Vizion.
"The financial compensation measure will be 50% of the total at the beginning of the 700 MHz band release process and the remaining 50% of the total, at the end of the 700 MHz band release process," the draft law states.
The process of releasing 700 MHz frequencies, known as Digital Dividend Two (DD2), is an international obligation for Albania, which has faced delays beyond the deadline set by the European Union in June 2022.
In Albania, the situation was complicated by a decision by the Audiovisual Media Authority (AMA) in 2017, when television operators were licensed to use the 700 MHz band for 10 to 15 years, although it was known that after 2022 this frequency band would no longer be available for this service.
Asked by BIRN about the distribution of the compensation value among digital operators, the Audiovisual Media Authority said in a written response that the same practice would be followed as in the case of the digital dividend 1, which it considered successful. In 2017, the government distributed about another 5 million euros to private media for their transition from analogue to digital broadcasting. The AMA also stressed that the data on the distribution of the compensation would be made public after the law is approved.
"The National Frequency Plan, approved in December 2024, foresees that the release will be completed by the end of 2025 and the process requires the definition of a compensation scheme for operators who must move below the 700 MHz band, as there will be changes to the national network, transmitters, changes in coverage areas, etc., which translate into investments for national operators," said AMA.
"Considering the current situation and the importance that this issue has at the political, technical, regulatory and diplomatic levels, it is necessary to approve the draft law for the start of the Frequency Migration process and the release of the 700 MHz band, to ensure compliance with Albania's international commitments," she added.
Journalist and lecturer Elvin Luku told BIRN that mismanagement in the initial allocation of frequencies and delays in their release have brought double costs to the country. Luku explains that television operators are being compensated with 5.1 million euros for releasing frequencies that they should not have used in 2017, while not using them for the 5G network has also brought costs.
"It is the loss of 5.1 million euros that was caused to the state budget by a mismanagement of the licensing process in 2017 that licensed operators to use the 700 MHz band for 10 or 15 years, when it was known that in 2022 these operators who invested would no longer be able to use this network," Luku stressed.
According to him, the problems are not only financial, but have also created inequality among citizens, leaving part of the country out of coverage with better service.
"The two networks have brought a lack of quality services for Albanian citizens and businesses as a whole compared to other countries in the region. Let's not forget that the licenses granted in 2024 also create a digital divide between citizens, as through these licenses, according to AKEP, at best only 55% of the territory is covered and with the use of the DD2 spectrum, this coverage is intended to increase to 88%," says Luku.
In the report accompanying the draft law, the delays are justified by the complexity of the process, which includes technical and legal elements and requires cross-border coordination with many countries. The report also points out the fact that licensed television operators have invested in the construction of digital broadcasting networks based on licenses issued by the AMA, making the process also have a financial cost.
The government argues in the report that the money it will pay to media companies will be returned to the budget through the revenues generated from the use of frequencies for 5G networks. According to the official report, the draft act “aims to ensure the continuity of public reception of all television programs transmitted via terrestrial networks, after the release of the 700 MHz band, through partial compensation of the additional net/direct costs caused by the process of releasing the 700 MHz band”./BIRN/
