France bans ads on public TV at the expense of telcos

Posted By TelecomTV One , 26 June 2008 | 0 Comments | 0 people rated this an average of 3/5

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French President Nicolas Sarkozy has proposed a new ban on advertising on state-owned public television, effective 1 January next year, and will tax Internet service providers, telecoms operators and commercial-broadcasting companies to make up the revenue shortfall.

“For viewers, things will change from Jan. 1, 2009. All advertising will be phased out by Dec. 1, 2011,” Mr Sarkozy said in a speech yesterday at the Élysée Palace in Paris.

To subsidise ad-free public television, the proposal calls for a three per cent tax on the advertising revenue of private broadcasters and a 0.9 per cent tax for Internet service providers and telcos, as well as an additional €80 million in funding from commercial broadcasters.

However, the country’s media and telecommunications industries argue that the move will stifle competition and investment in the sector and plan to petition against the plan, which is currently pending parliamentary approval.

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France bans ads on public TV at the expense of telcos

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