The aid, amounting to €37.6 million, has been issued by the French Agence de l’innovation and has been legally justified by the Commission under Article 87(3) (c), EC Treaty (state aid is admissible when there is no adverse affect to trading conditions). According to the Commission’s analysis “the European markets for mobile television are still emerging”. Therefore, aid is essential for tackling “market deficiencies”.

The project entitled “Télévision Mobile sans Limite” (Unlimited Mobile TV) seeks to “develop a solution combining satellite and terrestrial networks with a view to broadcasting television on mobile phones” in the S-Band (at the 2.2 GHz frequency). It involves 10 partners (three public research institutes and seven private companies) coordinated by the French subsidiary of Alcatel-Lucent. Work began on May 1st, 2006 and will be spread over three years. The Unlimited Mobile TV solution should be rolled out some time in 2009.

Technology similar to that which is to be used by Unlimited Mobile TV is already available in Japan and South Korea. It cannot be employed in Europe without creating difficulties with frequency planning. Mindful of the regulatory problems in Europe, the Commission decided, on February 14th, of this year, to harmonise use of the radio spectrum in the 2 GHz frequency band for the implementation of systems providing mobile satellite services. Moreover, the Commission’s Information Society and Media Directorate-General is holding, until May 30th, 2007, a public consultation on a framework for selecting and authorising operators providing mobile satellite services in Europe.

The technology resulting from the Unlimited Mobile TV project will work on a standard known as DVB-SH, which was approved on February 14th by the Digital Video Broadcasting (DVB) forum and which is based on the existing DVB-H mobile broadcasting standard. The specifications of this new standard are accessible to the aid recipients’ competitors.

In the words of Competition Commissioner Neelie Kroes, “this research and development project will benefit European customers by broadening mobile television supply in Europe. [...].The only regret I have is that, unlike its forerunners financed by the Commission, this collaboration does not extend beyond the frontiers of France”

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