[article] RTÉ plans separate entity for transmission services

Machinehead wrote: »

I remember reading somewhere round here that RTÉ/RTÉNL had financed the digital switchover by borrowing from private banking institutions.
If this breakup goes ahead will the new newwork operator carry the estimated €70m borrowing cost of setting up the Saorview network with it, off the shoulders of RTÉ.

Machinehead wrote: »

On another tack, it unwise to dispose of what may be considered a national infrastructural asset? The resilt of such "asset disposal" is clearly evident in the current sate of the national phone/broadband network as a result of lack of investment by it's various owners since privatisation.

What the Government ignored
Thursday February 23 2012

A REVIEW led by economist Colm McCarthy in April last year recommended the sale of a host of state assets, but warned against a fire sale.

The Government has loosely followed its advice but has not adopted many of its proposals, among them the following:

RTE: report said it should sell its broadcasting network, RTENL, but put safeguards in place to ensure it is available to the State in case of a national emergency.

...

http://www.independent.ie/national-news/what-the-government-ignored-3029095.html

afatbollix wrote: »

Id say Arqiva will buy it. They put most of Saorview in place and own Free view in the UK.

RTÉ announces Repositioning of RTÉNL
Monday, 23 July 2012

As part of ongoing changes at RTÉ, the organisations subsidiary company 'RTÉ Transmission Network Limited' (RTÉNL) is to be repositioned. Announcing the change, RTÉ Director-General Noel Curran confirmed that RTÉNL will be renamed and rebranded. In addition, the subsidiary's headquarters will be located away from RTÉ's Dublin campus in Donnybrook. A new board of directors, including independent directors, along with a new independent chairman, will be appointed.

Noel Curran, Director-General of RTÉ, said: "The repositioning of RTÉ NL means that the company will be able to take full advantage of developments in broadcast services markets nationally and internationally. While RTÉ NL will remain a subsidiary of RTÉ, these changes will allow it to become a true leader in broadcast delivery technology. The recent, and successful, roll-out of the infrastructure for SAORVIEW clearly demonstrates RTÉ NL's ability to deliver, and this repositioning will put it in the best position to build on its competencies and achievements."

RTÉ NL was established as a separate company in 2003 and it operates a network of some 170 distribution and transmission sites across Ireland. It provides broadcast distribution and transmission services to the Irish television and radio channels, including national services such as RTÉ One and RTÉ Two, TV3, TG4, Today FM, RTÉ Radio 1, 2fm, lyric fm, RnaG and Newstalk, as well as regional and local radio services such as Clare FM, Kerry Radio, Spin FM, etc. In addition to broadcast, RTÉ NL also provides services into the telecommunications industry.

Mick Kehoe, Executive Director of RTÉNL, said "This repositioning of RTÉ NL is an exciting development that will refresh both the company and the business. As with most other businesses in Ireland there are challenging times ahead but I am confident that with this fresh start, along with input from the new talent that will join the company board, RTÉ NL will expand and prosper."

The repositioning of RTÉ NL, and its move away from RTÉ in Donnybrook, comes during a period of dynamic change at the organisation. As well as major cost-saving initiatives and a second voluntary exit scheme, the broadcaster is delivering key structural changes that will position it with both long-term sustainable finances as well as the optimal structure for the digital future.

http://www.rte.ie/about/pressreleases/2012/0723/rtenl23072012.html

Tuesday, 9 October 2012

390. Deputy Michael Moynihan
asked the Minister for Communications; Energy and Natural Resources the reason RTÉ borrowed €38.25m to pay for the roll out of DTT multiplex platform in 2010 when it had cash reserves of €63m at the time; the assets against which the borrowings have been secured; in view of the fact that RTÉ has operated deficits over the last number of years amounting to €19 million in 2008, €17 million in 2009, €4 million in 2010, €15 million and estimates of €60 million in 2012, if he will clarify if these deficits have been authorised and if they contravene the State aid requirements; and his views on whether there is a need for fundamental reform of the funding of broadcasting. [42704/12]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): RTÉ is an independent national public service broadcaster whose remit and obligations are set out in Section 114 of the Broadcasting Act 2009.

Section 98 provides that the company shall be independent in the pursuance of these objects, subject to the requirements of the Act and as such, I, as Minister, have no function in the management of RTÉ’s day to day affairs including decisions it makes on its financial expenditure. These are purely matters for RTÉ management.

The borrowing referred to in the question, was integral to RTÉ’s funding the €70m capital cost of the new Digital Terrestrial Television (DTT) platform, with the remainder coming from its own resources. This investment will greatly improve the quality of TV reception whilst enabling more channels to be broadcast free-to-air. It will also release valuable spectrum to be auctioned to the benefit of the Exchequer thereby facilitating faster mobile broadband speeds especially in rural areas. RTÉ are to be commended on their investment in this regard. In regard to the mix of funding used, the manner in which RTÉ approached this reflects standard practice in the commercial world and demonstrates prudent financial management, in line with the company’s obligations under the legislation.

In this regard, RTÉ has a direct obligation under Section 105 of the Broadcasting Act 2009 to ensure that its revenue is at the earliest possible date at least sufficient to meet all sums properly chargeable to its current account and to make suitable provisions with respect to capital expenditure. I am satisfied that RTÉ management is fully cognisant of this obligation and are taking all the necessary steps to ensure that the company continues to be in compliance with the terms of the provision. In this regard, I can confirm that I have engaged with the Director-General of RTÉ on a number of occasions since my appointment as Minister and I have made my view clear that a continuing deficit position is not tenable. I believe that RTÉ management fully concur with this and are taking the remedial action necessary to address the situation and to deliver on the commitment to return to a breakeven position by the end of 2013.

In regard to the question of State Aid requirements, I would also like to assure the Deputy that the Broadcaster is fully compliant with State Aid rules and in this regard, I can confirm that the Directorate General for Competition in the E.U. are being kept fully informed of developments in Irish television broadcasting.

On the question of the future funding of broadcasting, the Deputy should be aware that Section 124(8) of the Broadcasting Act 2009 charges the Broadcasting Authority of Ireland with carrying out a review of the adequacy or otherwise of the public funding of the Public Service Broadcasters to meet their public service objects. In addition, Section 158(1) of the Act provides that the Authority shall review the operation, effectiveness and impact of the broadcasting funding scheme. I look forward to receiving these reviews before the end of the year and they will serve to inform my views on the need for any reform of the public funding of broadcasting.

http://oireachtasdebates.oireachtas.ie/debates%20authoring/debateswebpack.nsf/takes/dail2012100900068?opendocument#Broadcasting Sector

On 22 December 2010 RTÉNL, RTÉ’s transmission subsidiary, entered into a project finance loan facility agreement with Barclays Bank amounting to €38.25 million as part of the funding for the transmission and distribution infrastructure required for the Digital Terrestrial Television (DTT) project (see below). This facility was drawn down in full at 31 December 2011.

Capital Expenditure
RTÉ’s total capital expenditure in 2011 was €24.6 million (2010: €12.9 million) with the most significant item being a further €13.7 million incurred in respect of transmission and distribution infrastructure by RTÉNL for DTT.

Bank Loan Facility

Interest rate % - EURIBOR plus margin
Maturity - 22 December 2015
2011 - €38,250,000
2010 - 0

The following are the contractual maturities of financial liabilities:
Carrying amount - €38,250,000
Contractual cash flows - €44,225,000
Within 1 year - €1,469,000
1-2 years - €1,369,000
2-5 years - €41,387,000

On 22 December 2010, RTÉNL entered into a five year project loan facility agreement amounting to €38.25 million. RTÉNL entered an interest rate swap to convert floating rate debt to fixed rate debt for the entire value and duration of the borrowing facility.

Lender covenants
RTÉNL’s bank facility requires it maintain certain financial covenants. Non-compliance with financial covenants would give the lender the right to terminate facilities and demand early repayment of any sums drawn thereunder thus altering the maturity profile of RTÉNL’s debt and RTÉNL’s liquidity. Calculations for financial covenants are completed quarterly. RTÉNL was in full compliance with the financial covenants at the balance sheet date.

RTÉNL is not aware of any stated events of default as defined in the Agreements.

Lender security
It was one of the conditions to the availability of the project loan facility that RTÉNL execute a security deed agreement and provide the lender security as follows:

a) Lands of 13 main DTT transmission sites;
b) All RTÉNL present and future fixtures and fittings on the DTT transmission sites;
c) All RTÉNL rental income and occupational leases;
d) Rights and benefits of RTÉNL insurance policies;
e) Certain bank accounts of RTÉNL relating to the DTT project (i.e. the Sinking Fund Account and the Insurance Proceeds Account);
and
f) Deeds of Assignment creating security assignments in respect of certain commercial contracts and DTT Construction Contracts.

RTÉ has entered an undertaking to pay to RTÉNL by way of a loan an amount equal to any interest and/or fees falling due under the loan facility agreement should RTÉNL not have sufficient funds to do so. The undertaking is subject to specific terms and conditions which determine when this obligation arises.

12 element wrote: »

New name?

https://www.iedr.ie/whois-results/?option=com_content&view=article&whois=2rn&id=86&Itemid=105&Search_x=0&Search_y=0

domain: 2rn.ie
descr: RTE Transmission Network Limited
descr: Body Corporate (Ltd,PLC,Company)
descr: Discretionary Name
admin-c: APR288-IEDR
tech-c: AAM456-IEDR
registration: 03-October-2012
renewal: 03-October-2022
status: Active
nserver: ns1.blacknight.com
nserver: ns2.blacknight.com
source: IEDR

person: Mick Kehoe
nic-hdl: APR288-IEDR
source: IEDR

Type: Business Name

Number: 489832

Name: 2RN

Address:
COOKSTOWN COURT
COOKSTOWN INDUSTRIAL ESTATE
TALLAGHT
DUBLIN 24

Registered: 12/04/2013

Status: Normal, Effective Date 12/04/2013

http://www.cro.ie/search/CompanyDetails.aspx?id=489832&type=B

2RN - WHO WE ARE

FORMERLY RTENL

2RN is a communication network operator in Ireland, with a substantial portfolio of developed sites and in house engineering, planning, construction resources and capabilities.

2RN distributes and transmits the programme services of RTÉ Radio and Television, TV3, TG4, and Today FM.
We also provide transmission services to a number of local and regional radio broadcasters as well as site services to mobile telephone and broadband operators, private communications companies and the emergency services.

We are constantly developing our site portfolio in conjunction with customers and land owners.
We provide a full range of services for the broadcast and communications operators.
We provide a full range of services for the broadcast and communications operators.

•Site acquisition and development
•Frequency planning
•Engineering design and development
•System integration and maintenance
•Hosting of equipment on sites
•Provision of full turn-key solutions