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France bans STB tax, but ups telco tax

Fleur Pellerin , the French Minister of Culture and Communication, has confirmed government plans to increase the telco tax from 0.9 per cent to 1.2 per cent of their annual revenues and limit to €1 the rise in the TV licence fee so as to give larger resources to PSB groups France Télévisions and Radio France.

Pellerin said no to the reopening of prime time advertising, which was banned in 2009, and also refused to expand the licence fee to smartphones, tablets and connected devices.

The decisions did little to please France Télévisions, and were also strongly denounced by French telcos. Orange has already calculated that the tax increase used in the funding of France Télévisions after the prime time ad ban, will amount to €100 million, whilst Free suggests that it is the triple-play subscribers who will end up paying most.

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