No ads for RTVE from January

Iñaki Ferreras

Spain’s government has approved the draft for the financing of national public broadcaster RTVE establishing the company will not broadcast any more advertising from January 2010 onwards.

The text approved by the Parliament will now have to be approved by the Senate at the end of this month.

The new law softens the conditions for the change. Telcos will now pay no more than 25% of RTVE's budget and national private broadcasters maximum limit is 20%. The goal of these two conditions is to avoid the taxes rising to be too high in the future.

But this new financing model of the public broadcaster still goes against the opinion of the telcos who are not happy with it. The association of network operators Redtel said the new conditions do not solve the main problem, since the future law taxes the telcos when it should not do so.

Redtel’s members include Telefónica, Vodafone, Orange and cable operator Ono.