Austria

Changes over the last three months (Oct.-Dec. 98)

On-going developments

I - Historical and juridical viewpoint

1. Broadcasting, Satellite and Cable TV

1.1 Legal Foundations for Broadcasting and Television

• The Constitutional Broadcasting Act (BVG-Rundfunk - 1974) : this law is the basis for all regulations; it stipulates the independence of the Austrian Broadcasting Corporation (ORF) and lays down the obligation for broadcasting as a public responsibility to be enforced by the Austrian government.

• The Federal Act on the setting up and the Operation of Radio and TV Reception Equipment (RVO -1965) : it is a central part of last years developments, since it caused two constitutional court rulings after the Regional Radio Act came into force.

• The latest version of the Federal Broadcasting Act (RFG) dates from 1984 but it is being revised (see Part II). This law determines the tasks (public service broadcasting) and the organisation of the ORF.

• The Regional Radio Act (RRG - 1993): it was a first effort to liberalise broadcasting by providing a legal basis for commercial regional and local radio broadcasting.

• Important Rulings of the Constitutional Court (1995/1996): according to the prevailing legal position, only the ORF was entitled to provide "active cable broadcasting". In the ruling of September 1995, the Constitutional Court stipulated the right of free expression of opinion which - applied to broadcasting - guarantees the right of reporting news or ideas transported via radio and TV aerial systems. The government bill of December 1996 and another separate bill on cable and satellite broadcasting gave more precise legal foundation than the RVO could give. The ruling of the Constitutional Court of September 1995 also concerned the Regional Radio Act (RRG) and led to the cancellation of parts of the RRG. Consequently, the plan for the use of frequencies lost its legal foundation. Cable and Satellite Broadcasting Act (KSRG, 1997) : The annulments of parts of the RVO by the constitutional court made it necessary to work out a separate Cable and Satellite Broadcasting Act (KSRG). It was approved by Parliament on March 20 1997 and has come into force in May 1997. The terrestrial transmission of television remains under regulation of the Federal Broadcasting Act (RFG).

• The Regional Radio Act (RRG, 1997): the new version of the Regional Radio Act provides for a regulatory body, the Commercial Radio and Cable Broadcasting Authority, which is also in charge of cable broadcasting. The final decision on awarding licences lies in the hands of the regulator after a process of recommendations at provincial and municipal levels. The law allows for shares in commercial radio operators of up to 26% per single shareholder. There is a restriction on commercials of 90 minutes per day for private broadcasters and 120 minutes for the ORF. Some criticism has been heard on parts of the "Regional Radio Act".

1.2 Commercial Radio Broadcasting - market development

Because of the new Regional Radio Act, 53 local and regional commercial radio broadcasters were awarded licenses in the second half of 1997. In November 1997, the Commercial Radio Authority awarded 8 licences for regional frequency slots and 43 licences for regional and local frequency slots. About 300 applications had been submitted. Licences are granted for a 5-year period. By the end of 1998, practically all of the radio stations that had been awarded a licence became operational. The new commercial radio broadcasters tend to be dominated by the most influential print media in Austria.

There is a conflict about the restricted advertising time for radio broadcasters. While commercial radio stations are allowed 90 minutes per day for broadcasting commercials, the ORF (i.e. radio stations Ö3 and Ö2 together) is allowed 120 minutes. On top of that, the public broadcaster may go beyond this limit by up to 20 percent per day as long as the weekly average is balanced. Commercial radio stations request the right to balance out their commercial time limit within a week or even a year.

Market Analysis of the Austrian Radio Market ("Radio Test", 2^nd quarter 1998) : according to the analysis "Radio Test", the public service broadcaster ORF remains the market leader with a solid 79% share. The commercial broadcasting companies have a market share of 17% all together. The rest remains with foreign broadcasters.

1.3 Commercial Terrestrial Television Broadcasting

Since November 1996, private TV-organisers are allowed to broadcast commercials. But real commercial television will only be possible when private organisers are not only allowed to transmit via cable networks but also via terrestrial frequencies. There were clear signals from the Austrian government to end the (terrestrial) TV monopoly of ORF within the next 2 years.

1.4 Cable and Satellite Broadcasting – market development

According to the new Cable and Satellite Broadcasting Act (KSRG, 1997), cable TV network operators no longer have to apply for a licence but only have to announce the establishment of a network. Thus, competitive markets may be established in theory, but the limited size of networks will probably not allow for more than one network in a region. The single provider structure will probably remain dominant in the cable TV market. The regional TV market has been overestimated by some providers.

"Telekabel"
The Vienna based cable TV network "Telekabel", the largest network in Austria (380.000 households connected), has received an unlimited license for voice telephony and leased lines and is about to offer services. It also offers near-video-on-demand services.

"Wien 1"
The private TV broadcaster "Wien 1" started broadcasting in April 1997. The commercial TV-channel can be received in the capital city only via the cable network "Telekabel", but is planning to run the first private terrestrial nation-wide TV-station. Wien 1 intends to give away programmes to broadcasters in the provinces free of charge to increase their income from advertising through the increased range.

1.5 Developments at the ORF (the public service broadcaster)

New General Manager
Since July 1998, the public service broadcaster ORF has a new general manager: Gerhard Weis. He has served in the ORF for 31 years. Gerhard Weis has now to deal with the restructuring of the ORF. Issues to be dealt with are the alignment of the two TV channels and four radio stations in an increasingly competitive market situation.

Plugs
The Austrian Press Agency (APA) turned to the Commission for the Protection of the Broadcasting Law, which is in charge of supervising the ORF as well as the private competitors in respect of adhering to the federal laws, accusing the ORF of broadcasting non-declared arranged advertising programmes in June 1996. The Commission decided that the ORF has acted against the law.

Roll out of Advertising Department
In order to decrease costs and avoid further legal difficulties with the set-up of advertising co-operations with private competitors on the radio market, ORF plans to outsource the advertising department.

Unfair Competition
Two cases are still pending. For competitive reasons, ORF refuses to broadcast commercials of rival radio stations. The second case concerns a complaint by a commercial radio station against the ORF stating that the public broadcaster has set up an advertising cartel together with four other commercial radio stations in and around Vienna.

Cross-border Broadcasting
ORF suffered a defeat in late 1997 when German commercial TV networks (RTL and Sat 1) put pressure on the ORF for its contemporaneous programming of feature films and talk shows. One of the TV channels of the ORF was received in Bavaria (2.7 million households) via terrestrial antennas and cable network. Many German viewers favoured ORF 1 because they could consume the same films without interruptions by commercials. Thousands of protest letters were written and some viewers are even taking legal proceedings against the expulsion of the ORF.

2. Telecommunications

2.1 Telecommunications (FMG 1993) and Postal Service Structure ACT (PTSG)

Reform of the Austrian telecommunications system has largely resulted from external pressures. The operational and national regulatory activities of the Austrian Postal and Telecommunications Administration (OPTV) were separated in January 1993 to comply with EU directive.

The prime objective of the new TKG 1994 was harmonisation with EU legislation. Thus, the Act introduces mutual authorisation of EU-approved terminal devices and liberalisation of services with one exception: the voice telephone services. The infrastructure monopoly remained unaffected by the Act.

The Postal Service Structure Act (PTSG) should have been adopted in 1994 and was primarily intended to solve the OPTV's structural problems. A compromise solution was found by creating the OPTV Holding Company opening the way for the establishment of joint ventures from 1995 onwards.

The most important issues of the Postal Service Structure Act are:

• Post und Telekom Austria (PTA) will be privatised at latest by the end of 1999 ;
• "Accounting separation" between different operational groups of PTA has to be established ;
• PTA has to pay a licence fee based on its turnover ;
• To the extent that PTA performs public services, the costs associated should be borne by the ordering party ;
• PTBG - the shareholders - will take over up to AS 50 billions of PTA's debts.

PTA spun off a mobile branch (Mobilkom Austria) and a data services branch (Datakom/Radio Austria) and is the local distributor of Concert (BT/MCI). Mobilkom is also looking for an international partner who is willing to buy about 25% of its shares.

2.2 Legal Foundation: The New Telecommunication Act (TKG 1997)

This new Act was accepted by the House of Parliament on June 26 1997 to be enacted by the 1^st of August. Compared to the preceding drafts, it is more detailed, contains regulation concerning the structure, establishment and competencies of the NRA and improves the position of alternative network operators considerably. Furthermore, EU legislation is fully incorporated into this national act. The objectives of the new Telecommunication Act are to:

• create a modern telecommunication infrastructure to promote Austria as a business location;
• secure a "level playing field" on all telecommunications markets;
• provide nation-wide universal service;
• protect user from the abuse of market power;
• secure efficient and undisturbed use of frequencies.

The most relevant issues are regulated as follows:

Licences
Providers of telecommunications services only have to notify the NRA of the service intended to offer (class licence). A list of service providers will be published by the NRA on a yearly basis. For public mobile services, voice telephony and the offering of leased lines, a licence is needed.

Terms of Trade and Price Regulation
Changes in terms of trade have to be announced two months in advance. Terms of trade for services over fixed and mobile networks and leased lines have to be approved by the NRA if the operator has a dominant market position.

Rights of Way
Rights of way are of particular importance for alternative infrastructure operators. The Telecommunications Act stipulates the right to use public ground for the construction of telecommunications infrastructure free of charge and without permission for public telecommunication service licensees.

Universal Service Obligation
The universal service obligation encompasses access to public telephony via a fixed network service capable of handling faxes and allowing to use a modem, access to emergency services free of charge, access to directory inquiry services, access to directories of participant of public telephony services and nation-wide availability of public telephone boxes. Reduced tariffs for specific user groups are envisaged.

Competition Policy
The regulation on competition intends to create a "level playing field" for market participants, to increase market entry, to obey the ONP regulations, to implement sector specific competition regulation of the EU and to mediate between market participants and between market participants and consumers. The NRA will publish a list of operators considered to have a dominant position on specific regional markets on a yearly basis.

Consumer Protection
In case of disputes with public telecommunications operators or service provider each market participant has the right to ask the NRA for mediation

2.3 Telecommunication Authorities Including the National Regulatory Authority (NRA)

There are a number of authorities involved in telecommunications policy. The heterogeneity can be reduced by grouping the authorities around the Ministry of Science and Transport (Supreme Telecommunications Authority) and the National Regulatory Authority (Telekom Control GmbH). Affiliated are four Local Telecommunications Authorities (Fernmeldebüros) and the Certification Office (Zulassungsbüros) which is responsible for licensing equipment. The newly established Telekom Control GmbH (NRA) (http://www.TKC.at) is responsible for regulating the telecommunications industry as indicated in the Telecommunications Act. It is a fully state owned, non-profit limited liability company with AS 50 million equity. Consequently, Telekom Control receives guidance from the Supreme Telecommunications Authority and from the Ministry.

Determination of interconnection tariffs
On March 9, Telecom Control Commission announced its ruling on interconnection tariffs. The interconnection fee (excluding VAT) for single transit will be 0,25 ATS per minute and 0,33 ATS per minute for double transit. This interconnection regime will last until January 1, 2000 and is within the price band recommended by the European Commission. These fees only reflect the costs of the core network and do not include the cost of access network, distribution, other services and access deficit contributions. Consequently, a reform of PTA's tariffs during the next months is very likely.

2.4 Telecommunication market development

On December 9 1997, Telekom Control Commission issued nine licences for voice telephony and/or leased lines. Up to now, more than 40 telecommunications licenses have been issued.

Developments in the 2^nd quarter 1998 were marked by further restructuring of infrastructure operators, consolidation of the regulatory framework and further evolutionary advances of competitors in the telecommunications market. Nevertheless, the dominant operator PTA announced record earning for 1997 : in the telecommunication unit, profits amounted to ATS 8,2 billions. Additionally, profit of ATS 2,4 billions stem from its subsidiaries Mobilkom (ATS 2 billions) and Datacom (ATS 400 millions). The results was 25% higher than forecasted. It was striving to select a strategic partner to increase its foothold on the market and in October 1998, it has selected Telecom Italia as a strategic partner for a 25,1% stake in Telekom Austria (see Part III).

• Mannesmann Eurocom acquired 74,8% of tele.ring for ATS 2 billions from Verbund and ÖBB. Mannesmann is also interested in future mobile licences in Austria.

• In May 1998, UTA announced that 50% of stocks plus one share were sold to Swisscom.

• Telekom Control Commission decided on the May 14 1998 on dominant operators. According to its decision, Post & Telecom Austria is dominant on the market for public voice telephony, leased lines and interconnection services. Its subsidiary Mobilkom was judged dominant on the market for public voice telephony via a mobile network.

The following operators possess either voice telephony or leased lines licences:

2.5 Liberalisation in mobile communications

An important second step towards liberalisation was taken in 1995 with the invitation to tender for a second mobile telephone licence. Five consortia applied. The O-Call consortium offered the highest fee and was then selected. There is also increasing competition in paging services. Licences for offering paging services were granted without either tendering or collecting a licence fee.

The third mobile license was granted in Summer 1997. The consortium "Connect Austria" consists of Radex (20,1%), Viag (20%), Telenor, (17,5%), Orange (17,5%), Tele Danmark (15%) and Constantia (15%). Incumbent GSM operators criticised the "low" licence fee and announced that they would consider judicial action.

A dispute concerning frequencies in the 1800 band has still not been settled by the end of 1998.

In November 1998, Telekom Control initiated a consultation process on the 4^th nation-wide and regional mobile communications licences. Telecom Control asked for comments on the frequency issues, auctioning procedures and license conditions. A synthesis of the comments was published on the TKC homepage (http://www.tkc.at).

Issuing regional licenses still lacks an adequate legal framework (i.e. the possibility of simultaneous auctioning of frequency packets) so that it has to be adapted before any auction can start.

2.6 Developments at the dominant fixed line operator Post & Telekom Austria

PTA changes its privatisation strategy
The liberalised and competitive market environment led to a significant change in the privatisation strategy of PTA. Until December 1997, it was intended to introduce the whole conglomerate in the stock market (in 1999) and to look afterwards for a strategic telecommunications partner. On December 10 1997, PTA accepted to form a separate telecommunications unit with Telekom Austria AG, Mobilkom and Datakom. The number of potential strategic partner for the 25,1% stake in TA was reduced to two contestants. The final decision was taken in favour of Telecom Italia.

New tariffs and Per Second Pricing
PTA introduced a new tariff scheme on November 1, 1997 offering the possibility to choose between 4 different tariff schemes according to the amount of the telephone bill. Since then, the new tariff scheme of PTA has stimulated discussions and criticism .Due to increasing competition, it is expected that TA will submit a new tariff scheme in the near future to counter the growing competition from alternative operators.

Numbering
It was also a heavily disputed issue between PTA and alternative network operators. The new ordinance prepared a " level playing field " for all telecommunication operators, with the following principles:

• Austria will be split into 26 regions with different area codes;
• Number portability will be possible;
• Operators have to ensure that customers can select the access network operator on a call by call basis or by pre-selection;
• New operators will be assigned numbers not used by the PTA.

This issue is still not settled yet.

3. IS Platform Issues

3.1 Funding and IS promotion initiatives

Austrian Institute for the Promotion of the Economy (WIFI) - Sponsorship Programme
It is meant to create awareness for innovation and new technologies, offers solutions for technical problems, the implementation of microelectronics, flexible automation, new materials and material processing and stimulates the implementation of innovative management techniques. Sponsored topics are the following:

• Networks and groupware
• GSM and tele-working
• Telefax and Telebanking
• ISDN, e-mail and Internet
• Internet and customer support

Bureau for International Research and Technology Co-operation (BIT) - Sponsorship Programme
It has been established in 1993 and is a service organisation for the participation of companies, universities and research organisations in the Community Framework Programme, EUREKA, and other international research and technology programmes and initiatives. BIT offers three different initiatives sponsoring different technologies and services in the field of telecommunication and Telematic: ESPRIT, ACTS, and General Applications of Telematic).

Innovation and Technology Fund (ITF)
The ITF was established in 1987 to intensify applied research and technological innovation. The following activities are organised under this heading:

• Broadband Communications
• Telematics for Teleco-operation
• Inter-operability and Inter-connectivity

Austrian National Host (ANH)
It is an initiative of the Federal Ministry for Science and Transport (BMWV) implemented in collaboration with the BIT, the Vienna University Computer Centre (ACOnet) and the public network operator Post & Telekom Austria (PTA). The ANH offers an Austria-wide platform for the development and dissemination of modern (broadband-) telecommunication applications and services. All activities are based on an ATM (Asynchronous Transfer Mode)-infrastructure.

3.2 Mixed Information on Information Society Developments

Research Centre Telecommunication Vienna (FTW)
The capital city Vienna is making an attempt to concentrate existing competencies in telecommunication and to create new jobs. To achieve this, three institutes of the University of Technology of Vienna and 15 companies got together and created this research centre.

The Federal Ministry for Science and Transport co-ordinates this and five other projects. After a positive evaluation the Federal Ministry for Science and Transport and the City of Vienna will grant subsidies of about ATS 30 million.

The scope of research includes:

• technology for the development of the Internet,
• high speed data transfer via existing copper cables,
• technologies for interactive multimedia applications,
• intelligent antennas for future hand-held mobile telephone generations, and
• network management.

Electronic Purse
In Austria there are about 3,5 million automated teller machine (ATM) cards issued. In fact only 150.000 Austrian (less than 5 percent) of the 3,5 million card owners use the integrated chip function.

Reasons for the rare use of the electronic purse function is the lack of promotion for the use of "Quick Cash" in Austria and the high cost incurred by purchasing terminals (more than ATS 10.000 per machine) which have to be paid by the shop owners. Due to the instalment costs, only large companies have started to set up terminals. By the end of 1999, 20 % of all installed machines with conventional coin slots or bill intakes will be equipped with "Quick-cash"-function.

First Web-Index for Austria
Austria’s first comprehensive Web-index provides a subject index, special listings and a regional structure of homepages. The operator of the project is a Viennese advertising expert.

Electronic Tax Return
After a two years development and test period, a new electronic data transfer system has been launched in March 1998. The system is called "Finanz Online" and has been developed by the Ministry for Finance and the Chamber of Trustees. Further development of the system will make it possible to transfer tax declarations, annual financial statements, and balance sheets and shall offer the opportunity to file applications by the end of 1998. In return the revenue authority will transfer tax assessment notices electronically which can be queried anytime. By that time also the validity of personal identity numbers of turnover tax within the EU market should be accessible electronically.

II - Changes over the last 3 months (October - December 1998)

1.Telecommunications

The fourth quarter of 1998 was marked by significant developments in the Austrian telecommunications sector. Most noteworthy was the selection of a strategic partner for Telecom Austria, the announcement of the allocation of nation-wide and regional mobile licenses and the start of access network operators.

1.1 Strategic partner for Telekom Austria

In view of its search for a strategic partner, the telecommunications branch of PTA was singled and renamed Telekom Austria (TA). The number of potential strategic partner for the 25,1% stake in TA was reduced to two contestants as Deutsche Telecom pulled out of the contests. Only Ameritech and Telecom Italia were interested in acquiring the PTA stake on offer. In October 1998, the final decision was taken in favour of Telecom Italia although both bidders offered around 23 billion AS for the TA stake.

1.2 Issuing of further mobile communications licenses

In November 1998, Telekom Control initiated a consultation process on the 4^th nation-wide and regional mobile communications licences. Telecom Control asked for comments on the frequency issues, auctioning procedures and license conditions. Overall it is planned to start the licensing process for the 4^th nation-wide mobile license on the 21^st of December. The actual auctioning is scheduled for March/April 1999. So far, tele.ring (i.e. Mannesmann - Verbund - ÖBB), Swisscom/UTA and Tricotel (a group of Austrian investors) have publicly announced their interest in this license.

Issuing regional licenses still lacks an adequate legal framework (i.e. the possibility of simultaneous auctioning of frequency packets) so that it has to be adapted before any auction can start. It is envisaged that the licensing will start after the 4^th license will have been awarded. Consequently the regional licenses will be allocated in Summer 1999. All mobile licensees will be allowed to bid for regional frequencies but will be excluded from the 4^th license auction.

The necessity to allocate further mobile licenses was questioned by max.mobil. max.mobil argues that new licenses should not be issued as long a the ongoing frequency dispute has not been settled. Presently both GSM900 operators (max.mobil, mobilkom) asked for frequencies in the 1800 MHz Band. According to the telecommunication law GSM900 operators have access to 5 MHz of this frequency band if they can prove that their network capacity is no longer sufficient. Mobilkom was awarded these 5 Mhz in August 1998 after a lengthy procedure to prove that they do have capacity problems. This decision and the application of mobilkom were, and are still, discussed in the media. After Telecom Control Commission awarded these frequencies One (formerly Connect Austria) - the only GSM1800 operator - challenged this decision before the Constitutional Court. The Constitutional Court cancelled the decision of Telecom Kontrol Commission. It will decide on this matter itself. A date for this decision is not fixed yet.

1.3 Access network operators increasingly target residential customers

Since the third quarter of 1998, an increasing number of access network operators is targeting the residential customer market:

• UTA introduced its services in October and offers up to 35% reductions compared to TA tariff.
• RSL Com will also increasingly offer its service to residential customers.
• tele.ring entered the market at the beginning of December.

1.4 Internet telephony operator

RSLCom is the first telecommunication operator to offer Internet telephony in Austria. The new service allows for phone to phone (and of course all other forms) Internet telephony. Tariffs are reported to be significantly lower than those of traditional fixed line operators.

1.5 Consultation process on direct access

On October 16 1998, Telecom Control started a consultation process on unbundled access to the infrastructure of dominant operators. Statements of interested parted were due to arrive by December 14 1998 and will be published on the web page of Telecom Control.

2. Broadcasting

In the last session of the Parliament this year, some new laws have been passed concerning broadcasting, but the high expectations have not been met. The chancellor repeatedly promised to privatise the television market and yet did not meet his own demand. The following section gives an overview at the last three months of the year 1998.

2.1 Commercial Radio Broadcasting

In order to enhance the attractiveness, those commercial radio stations with regional licenses set up an association not only to achieve better prices in the advertising market but also to gain from synergy effects with their own news network.

Results of the "Radio Test": Analysis of the Austrian Radio Market - Third Quarter 1998
In comparison to the second quarter of 1998, the Austrian public service broadcaster, ORF re-gained market shares which it had lost to the new competitors entering the radio market as of April 1^st this year. In addition, the daily reach of various commercial radio stations went down dramatically so that management of the respective stations reshaped and reorganised the programmes and the music choices to fit their target groups.

Advertising Market
Nevertheless, the advertising industry is hesitant concerning their engagement in commercial radio stations because of the very different developments in the broadcast area of these stations. The radio stations have not found their target groups in the local or regional transmission ranges yet and the adjustment processes of their programmes and music choices are in full swing.

Commercial Broadcasting Authority (Privatrundfunkbehörde)
The Commercial Radio Authority (Regionalradiobehörde) which has granted the licences for commercial radio in Austria is supposed also to co-ordinate future cable and satellite broadcasting and organise the licensing of commercial terrestrial television. The regulator will be able to revoke licences if the ownership of a station changes "essentially". To reflect the future responsibilities, the name of the authority will be changed into "Commercial Broadcasting Authority" (Privatrundfunkbehörde).

Representatives of the Austrian Publisher’s Association, the Association of Austrian Industrialists along with politicians of four Austrian parties and even the regulator itself meanwhile demand the establishment of a new regulatory body with enhanced competence and specialists who deal with the matter on a full job basis.

2.2 Commercial Terrestrial Television Broadcasting

At the end of 1998, the Austrian Parliament has still not agreed on a legal basis for commercial terrestrial television. The draft under discussion provides for a single nation-wide terrestrial analogue frequency slot and 49 regional slots which are too weak to reach more than a city. Further negotiations on the issue are expected by mid January 1999.

2.3 ORF: the Public Service Broadcaster

The long expected "big ORF reform" cannot even be called a "small ORF reform": On December 16 1998, the Austrian Parliament passed a new Federal Broadcasting Act and a new Regional Radio Act which should lay the basis for the new Commercial Terrestrial Television Act that has to be further discussed early next year as mentioned above. The changes to the Federal Broadcasting Act only implement the demands of the EU guidelines to broadcasting in Europe concerning the marking of violent programmes to protect children and young people. The new law grants the ORF more advertising time on its stations and a restriction on advertising on online services. At the same time, commercial free days were reduced from six to three days a year putting the ORF in line with commercial broadcasters which are not restricted at all in this respect.

III - On-going developments

In the field of broadcasting, the competition between the market leader, the public service broadcaster ORF, and the only recently admitted private competitors in the radio and the (cable-) TV market, has not yet reached the final status. A big issue remains the privatisation of terrestrial television in Austria. Technical restrictions have to be met as well as the political will to open the market for competition. Important steps towards competition on the terrestrial TV market have to be made but it is unknown when it will happen.

A big step towards a comprehensive regulation of this difficult sector is urged by many involved institutions in Austria. It is requested to set up a new regulatory body, a so called "Media Institution" (Medienanstalt), which should regulate the whole sector of the electronic media, i.e. commercial radio stations, commercial TV-stations, and the public service broadcaster ORF. Measures have to be taken in order to allow fair competition between private and public competitors.