Finland

[FI] Higher Television Licence Fees in Finland as of 1 January 2004

IRIS 2003-7:1/35

Marina Österlund-Karinkanta

Finnish Broadcasting Company YLE, EU and Media Unit

The Council of State decree of 22 May 2003 (Valtioneuvoston asetus televisiomaksuista) increases the television licence fee (paid by households) as of 1 January 2004.

The new television licence fee is EUR 186,60 for twelve months, EUR 93,90 for six months and EUR 47,50 for three months. This is an increase of 13% on the previous fee of EUR 165,15 for twelve months, EUR 83,10 for six months and EUR 42,05 for three months.

The increase is part of an ongoing reform process, in which the first step consisted in the changes in the Act on the State Television and Radio Fund as of 1 July 2002, whereby the operating licence fee paid by the commercial television companies was cut by 50% and digital television operations were freed from the obligation to pay an operating licence fee during the ongoing licence period (i.e. until 31 August 2010, see IRIS 2002-7: 10).

The third step will be to introduce annual television fee increases as of 1 January 2005. These increases will be linked to inflation. An additional 1% will be included in the increase for as long as both analogue and digital transmissions are carried out (i.e. the simulcast period).

Television licence fees paid by households and operating licence fees are the two sources of revenue for the State Television and Radio Fund, the assets of which are used to finance the activities of YLE, the Finnish Broadcasting Company. The aimof the increases in the television licence fees is to compensate for the reduction in the operating licence fees.