SCHOOL OF SOCIAL SCIENCES

CITY UNIVERSITY
 

COMMUNICATIONS POLICY IN PORTUGAL

AND ITS LINKS WITH THE EUROPEAN UNION


AN ANALYSIS OF THE TELECOMMUNICATIONS AND TELEVISION BROADCASTING SECTORS

FROM THE MID-1980's UNTIL THE MID-1990's


BY HELENA SOUSA
A THESIS SUBMITTED IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY
 
 

LONDON, 1996




Table of Contents

Abstract

Acknowledgements

List of Tables

List of Abbreviations

Preface
 
 

Chapter I

General Introduction

1. Theme and Objectives

2. Scope of the Study

3. An Outline of the Chapters
 
 

Chapter II

International Relations, Theories of the State and

Portuguese Communications: A Theoretical Framework

1. Introduction

2. The Relevance of the IR Inter-paradigmatic Debate

2.1. Telecommunications: What case for Interdependency

2.2. Broadcasting: Dependency, 'Reverse' Dependency and the 'Cultural Industries'

Approach

2.3. Neo-realism and the Emphasis on the Nation-State

3. IR Integration Theories and the EU Communications Policy: What Can Be Proved

and Disproved?

3.1. Federalism and Pluralism

3.2. Functionalism, Neo-functionalism and the Spill-over Process

3.3. Consociationalism and the Anti-democratic Tendencies of the Elites

4. Theories of the State, the National Policy-making Process and Communications Policy

4.1. The Authoritarian Tradition

4.2. Elitism and the Concentration of Power

4.3. 'Limited' Pluralism and Non-decisions

4.4. The Portuguese 'Corporatism' and the Corporatist Come Back

4.5. Policy Networks and the Fragmentation of the Policy Analysis

5. Conclusion
 

Chapter III
The European Union and its Communications Policy
 

1. Introduction

2. The EU in Context:
Other International Organisations in the Communications Arena 54

3. The EU History and Politics 57 3.1. Brief Historical Overview and the Neo-functionalist Integration Theory
3.2. Institutional Policy-making Framework
3.3. Lobbying and Interest Groups 67 4. The EU Communications Policy
4.1. Telecommunications Policy
4.2. Broadcasting Policy
5. Conclusion: EU Communications Policy and Portugal as a LFR
 

Chapter IV
Recent Political History of Portugal

1. Introduction
2. Profile of the Country
2.1. Geography
2.2. State and Society
2.3. The Economy
3. The Political Dictatorship (1926-1974)
3.1. A Brief Historical Overview
3.2. The Policy-making Process
4. The consolidation of a Democratic Regime
5. The Actual Political System
6. Conclusion:
The General Characteristics of the Portuguese Communications Policy
 

Chapter V

The Evolution of Communications Policy in Portugal

1. Introduction
2. Telecommunications Policy
2.1. From the 19th Century until 1974
2.2. From 1974 until the late 1980's
3. Main Actors in the Telecommunications Arena
4. Broadcasting and Media Policy
4.1. The Salazarist Period
4.2. From 1974 until the early 1990's
5. Main Actors in the Broadcasting/Media Arena
6. Conclusion
 

Chapter VI

The Telecommunications Sector in Portugal

1. Introduction

2. Regional Policies

2.1. The Legal Framework

2.2. The R&D Programmes

2.3. The EU and the Expansion of Advanced Services in Portugal

3. National Policies

3.1. Opening up the Market to Competition

3.2. The Re-organisation of the Sector

3.3. The Privatisation of Portugal Telecom

3.4. The Political and Economic Relevance of the Sector

4. Conclusion
 
 

Chapter VII

The Broadcasting Sector in Portugal

1. Introduction

2. Regional Policies

3. Public Service, Commercial TV and Economic Issues

4. The Opening up of the Portuguese Market

5. Public Service Broadcasting in Portugal

5.1. Rádiotelevisão Portuguesa

5.1.1. Canal 1

5.1.2. TV2

5.1.3. RTPInternacional

5.1.4. RTP-Madeira and RTP-Açores

6. Commercial Television

6.1. Sociedade Independente de Comunicação

6.2. Televisão Independente

7. Satellite and Cable Television

8. Conclusion
 

Chapter VIII

General Conclusion

Bibliography
 
 

Abstract


This thesis is an attempt to bring politics into the sphere of communications. Taking Portugal as a case study, we will try to demonstrate that the current national telecommunications and broadcasting systems are neither the mere consequence of external forces and imperatives nor the result of economic and technological developments (though they have played a relevant part). Indeed, very concrete political decisions (and deliberate non-decisions) taken by ill-prepared national politicians under pressure from nationally-based lobbies lay behind the configuration of Portuguese communications. Though recognising the increasing external links of national communications and, specially, the flourishing EU binding legislation and non-binding recommendations, this study sustains that the main reasons why the Portuguese people get what they get should be examined closer at home, rather than in a intricate net of external political and economic connections.

The so-called liberal ideology which has swept the country since the mid-1980s, coinciding with the accession into the EEC and with the beginning of Cavaco Silva ten-year term in office, did not mean less 'state'. Quite on the contrary, there has been - as never before - an intensification of political intervention in the communications arena. Telecommunications were partly liberalised and the privatisation of the major operator, Portugal Telecom has started; in broadcasting, the public television monopoly was broken up and two national TV channels were allowed to operate. However, this programme of reforms was so crudely developed that further political intervention is required and a more consistent regulatory framework will prove to be indispensable.

Despite the technological convergence between telecommunications and broadcasting, these two sectors have developed quite differently and are still perceived as distinct policy areas. Being displayed as essentially a technological issue, telecommunications did not attract much public interest and the sector was re-restructured without proper debate or consultation. The opening up of broadcasting to private companies has brought in some discussion but - due to the political sensitivity of the affair - the prime minister himself decided which would be the safest pairs of hands to be granted the two TV licenses. From a political point of view, telecommunications and broadcasting could hardly be further apart and yet both reflect aspects of the general characteristics of the Portuguese policy-making process. Inter-related attributes such as elitism and/or limited pluralism, political and geographical centralisation, lack of expertise and retreat on safe issues are observable in the way policies are conducted in both sectors.
 
 

Acknowledgements


My first acknowledgement goes to my supervisor, Professor Jill Hills, whose contribution to this work could not have been greater. I am most grateful for her talent and generosity.

I am grateful to numerous people who contributed in so many ways to this work. Among them, I have to highlight those who managed to find the time to answer my questions and to discuss a wide range of issues often on a regular basis (titles might have changed since the empirical research was conducted):

· Mr Almeida, Robalo de - Chairperson, Instituto das Comunicações de Portugal (ICP)

· Mr Balsemão, Francisco Pinto - Chairperson of Sociedade Independente de Comunicação and former Prime Minister

· Dr Banks, Marion - Academic, Westminster University
 

· Dr Cádima, Francisco Rui - Academic, Universidade Nova de Lisboa

· Mr Carneiro, Roberto - Chairperson of Televisão Independente and former Secretary of State for Education

· Mr Carvalho, Arons - Spokesperson for Communication issues, Portuguese Socialist Party

· Ms Casanova, Conceição - Information manager, Centro de Documentação e Informação da Portugal Telecom

· Ms Costa, Isilda - Legal adviser, Centro de Estudos das Telecomunicações, Aveiro

· Mr Cruz, Freitas - Chairperson of Rádiotelevisão Portuguesa

· Dr Cruz, Manuel Braga da - Academic, Instituto de Ciências Sociais, Universidade de Lisboa

· Dr Duarte, A. Manuel de Oliveira - Academic, Universidade de Aveiro

· Dr Espada, João Carlos - Academic, Instituto de Ciências Sociais, Universidade de Lisboa

· Mr Franco, Tiago - Director of Entrepreneurial Communication, Companhia Portuguesa Rádio Marconi, SA

· Ms Gonçalves, Maria Augusta - Journalist, Público newspaper

· Mr Louro, Soares - Former chairperson of Rádiotelevisão Portuguesa and of Rádiodifusão Portuguesa

· Mr Lucena, Manuel - Academic, Instituto de Ciências Sociais, Universidade de Lisboa

· Mr Junqueiro, Raul - President of Finacom - Telecomunicações, S.A. and former minister for telecommunications

· Mr Machado, Goulard - Journalist, Público

· Mr Martinez-Terrero, Jose - Researcher, Centre for the Study of Communications and Culture, St. Louis University

· Mr Matos, José Manuel Pereira de - Consumers representative at Instituto das Comunicações de Portugal

· Dr Mesquita, Mário - Academic, Universidade Nova de Lisboa

· Dr Oliveira, Manuel Paquete de - Academic, Instituto das Ciências do Trabalho e da Empresa

· Mr Panas, Roman - Information Services Executive, Communications and Information Technology (CIT)

· Mr Pereira, Paulo - TVTEL

· Dr Pinto, Manuel - Academic, Universidade do Minho

· Ms Rosado, Fátima - Direcção de Estudos e Planeamento, ICP

· Dr Traquina, Nelson - Academic, Universidade Nova de Lisboa

· Dr Tribolet, José - Director of INESC (Instituto de Engenharia de Sistemas e Computadores)

· Ms Vasco, Rute Sousa - journalist Público

· Mr Vasconcelos, António-Pedro - President of the Scale Programme for Portugal

Among the institutions/libraries/research centres I have worked on for this study, I am particularly grateful to staff and management of:

Biblioteca da Assembleia da República, Lisbon

Biblioteca do Instituto das Comunicações de Portugal, Lisbon

Centro de Documentação e Informação da Telecom Portugal/Portugal Telecom, Lisbon

Centro de Documentação da Revista Visão (formerly O Jornal)

Centro de Documentação do Jornal de Notícias, Oporto

Centro de Documentação do Público, Lisbon

Centro de Estudos de Telecommunicações, Aveiro

City University Library, London

Comissão Nacional do Programa STAR, Lisbon

Hemeroteca de Lisboa

London Business School Library

London School of Economic Library, London

Instituto das Comunicações de Portugal, Lisbon

Instituto Jurídico das Comunicações, Coimbra

Instituto Nacional de Estatística, Oporto

School of Oriental and African Studies Library, London

In addition, I have to mention the outstanding support of those I have worked with at City: Maria, Mouna, Abdelhamid, Vishnu, Naomi and Philip. I am grateful for the genuine interest in each others work, for very stimulant discussions and for the much needed encouragement. Maria deserves a special thanks for having become my most reliable Ph.D. consultant.

Back in Portugal, I am indebted to Pedro, Maria Augusta, Fernanda and Helder for having gathered crucial information when I just could not do it myself, for countless telephone numbers and, of course, for their support. Many thanks to Dr Paulo for having patiently printed early drafts of my work and for his computer advice. Also, I must thank São Viana for having so kindly received me in Lisbon during my endless working trips.

I cannot forget the support of my family: my brother and my sisters (and their partners!), my aunt and - in a very special way - my parents. During my stay in London, they all made their very best to keep me involved on the most important things in life (I mean, in our lives).

Finally, I want to thank Luis for having so peacefully endured my Ph.D. most difficult times and (how could I possibly forget...?) for having checked the Portuguese newspapers for my study on a daily basis for more than three years. Thanks for more than you know.
 
 

This study was undertaken with the joint financial support of Junta Nacional de Investigação Científica e Tecnológica (Ministério do Planeamento e Administração do Território) and the British Council, through the Programa de Formação e Mobilidade de Recursos Humanos. I am thankful and accountable to those who have - directly and/or indirectly - supported these institutions.

For practical reasons, all information in the Portuguese language - used in this work - was translated by the author of the thesis. We do apologise if, in any case, we do not express the full meaning of the original text or speech.

"But back to justice. You said that Marx thought capitalism was an unjust form of society. How would you define a just society?"

"A moral philosopher called John Rawls attempted to say something about it with the following example: Imagine you were a member of a distinguished council whose task it was to make all the laws for a future society"

"I wouldn't mind at all being on that council".

"They are obliged to consider absolutely every detail, because as soon as they reach agreement - and everybody has signed the laws - they will all drop dead."

"Oh..."

"But they will immediately come to life again in the society they have legislated for. The point is that they have no idea which position they will have in society."

"Ah, I see."
 

Sophie talking to Albert in Jostein Gaarder's best-seller Sophie's World
 
 

List of Tables


Table 1. Contribution to gross domestic product (% of total)

Table 2. European Community financial flows ($m)

Table 3. Illiteracy throughout Salazarism

Table 4. Legislative elections (6 October 1985)

Table 5. Legislative elections (19 July 1987)

Table 6. Legislative elections (6 October 1991)

Table 7. Government tutelage for telecommunications since 1974

Table 8. Government tutelage for the Media since 1974

Table 9. Participation of European countries in RACE

Table 10. Participation of organisations and companies in RACE

Table 11. Portuguese projects financed by STAR

Table 12. Main characteristics of the basic telecommunications network

Table 13. Density of telephone main lines per 100 inhabitants
 
 

List of Abbreviations


AACS - Alta Autoridade para a Comunicação Social

ACT - Association of Commercial Televisions

AD - Aliança Democrática

AMCHAM - American Chamber of Commerce

APDC - Associação Portuguesa para o Desenvolvimento das Comunicações

APET - Associação Portuguesa de Espectadores de Televisão

APT - Anglo-Portuguese Telephone Company

APU - Aliança Povo Unido

ATM - Asynchronous Transfer Mode

AT&T - American Telephone and Telegraph Company

ATV - Associação de Telespectadores

BBC - British Broadcasting Corporation

BDT - Bureau for Telecommunications Development

BEUC - European Bureau of Consumers' Unions

B-ISDN - Broadband Integrated Services Digital Network

BT - British Telecom

CATV - Community Antenna Television (now Cable TV)

CCA - Carlos Cruz Audiovisuais

CCIR - Comité Consultatif International de Radiocommunications (ITU)

CCITT - Comité Consultatif International de Téléphonie e Télégraphie (ITU)

CCTS - Comité de Coordination pour Télécommunications par satellites (CEPT)

CDS - Centro Democrático Social

CDU - Coligação Democrática Unitária

CEEP - European Centre of Public Enterprises

CEPT - Conférence Européene des Administrations des Postes et des Télécommunications

CEC - Commission of the European Communities

CEDITC - Comissão para o Estudo do Desenvolvimento Institucional e Tecnológico das Comunicações

CN - Comunicações Nacionais

CNPS - Comissão Nacional do Programa STAR

CoE - Council of Europe

COPA - Committee of Professional Agricultural Organisation

COREPER - Committee of Permanent Representatives (EU Council)

CPRM - Companhia Portuguesa Rádio Marconi

CTT - Correios e Telecomunicações de Portugal

DACS - Digital Automatic Cross-connect System

D.C. - District of Colombia

DECO - Associação Portuguesa para a Defesa do Consumidor

DG - Directorate General (CEU)

DGCP - Direcção Geral de Concorrência e Preços

EBU - European Broadcasting Union

EC - European Community

ECOSOC - Economic and Social Committee (EU)

EEB - European Environmental Bureau

EEC - European Economic Community

ECJ - European Court of Justice

ECSC - European Coal and Steel Community

ECU - European Currency Unit

EFTA - European Free Trade Association

EIB - European Investment Bank

EMU - European Monetary Union

EP - European Parliament

ERDF - European Regional Development Fund

ERM - European Rate Mechanism

ERS - Earth Reception Stations

ESA - European Space Agency

ESC - European Social Committee

ESF - European Social Fund

ESPRIT - European Strategic Programme for Research in Information Technologies

ETS - European Telecommunications Standards

ETSI - European Technical Standards Institute

ETUC - European Trade Union Confederation (ETUC)

EU - European Union

EURATOM - European Atomic Energy Community

EUREKA - European Programme for High Technology Research and Development

EUTELSAT - European Telecommunications Satellite Organisation

FCC - Federal Communications Commission (US)

FT - France Telecom

GATT - General Agreement on Tariffs and Trade

GDP - Gross Domestic Product

GFCF - Gross Fixed Capital Formation

GNP - Gross National Product

GSM - Global System for Mobile

HDTV - High-definition Television

IBC - Integrated Broadband Communications

ICCP - Information, Computer, and Communications Policy Committee (OECD)

ICP - Instituto das Comunicações de Portugal

IDN - Integrated Digital Network

IMF - International Monetary Fund

IN - Intelligent Network

INDC - Instituto Nacional de Defesa do Consumidor

INE - Instituto Nacional de Estatística

INESC - Instituto de Engenharia de Sistemas e Computadores

INMARSAT - International Maritime Satellite Organisation

INTELSAT - International Telecommunications Satellite Organisation

IR - International Relations

ISDN - Integrated Services Digital Network

ISO - International Standards Organisation

IT - Information Technology

ITC - Independent Television Commission

ITU - International Telecommunications Union

LAN - Local Area Networks

LDCs - Less Developed Countries

LFRs - Less Favoured Regions

m - million

MAC - Standard for enhanced transmission of television by satellite

MAN - Metropolitan Area Networks

MCI - Microwave Communications Incorporated

MCS - Ministério da Comunicação Social

mECU - Millions of ECUs

MEDIA - Measures to Encourage the Development of the European Audio-visual Industry (EU programme)

MEP - Member of the European Parliament

MTC - Ministério dos Transportes e Comunicações

MOPTC - Ministério das Obras Públicas, Transportes e Comunicações

MP - Minister of Parliament

MWTCL - Marconi's Wireless Telegraph Company Limited

NATO - North Atlantic Treaty Organisation

NBP - Nicolau Breyner Produções

NTT - Nippon Telephone and Telegraph

OECD - Organisation for Economic Co-operation and Development

OEEC - Organisation for European Economic Co-operation

ONA - Open Network Architecture (US concept)

ONP - Open Network Provision (EC/EU concept)

OJ - Official Journal (EU)

ORA - Opportunities for Rural Areas

PIDE - Polícia Internacional e de Defesa do Estado

PM - Prime Minister

PS - Partido Socialista

PSACs - Portuguese Speaking African Countries

PSB - Public Service Broadcasting

PSD - Partido Social Democrático

PSN - Partido de Solidariedade Popular

PRD - Partido Renovador Democrático

PT - Portugal Telecom

PTO - Public Telecommunications Operator

PTT - Postal, Telephone and Telegraph Administrations

PVDE - Polícia de Vigilância e Defesa do Estado

R&D - Research and Development

RACE - R&D in Advanced Communications Technologies for Europe

RDP - Rádiodifusão Portuguesa

RETI - Rede Teledifusora Independente

RR - Rádio Renascença

RTP - Rádiotelevisão Portuguesa

RTPi - Rádiotelevisão Portuguesa Internacional

SBT - Serviço Brasileiro de Televisão

SEA - Single European Act

SECS - Secretaria de Estado da Comunicação Social

SEC - Secretaria de Estado das Comunicações

SETC - Secretaria de Estado dos Transportes e Comunicações

SEPCM - Secretaria de Estado da Presidência do Conselho de Ministros

SIC - Sociedade Independente de Comunicação

SMDS - Switched Mulimegabit Data Service

SNI - Secretrariado Nacional de Informação (Propaganda Secretariat under Salazar)

SOG-T - Senior Officials Group for Telecommunications

SPN - Secretariado de Propaganda Nacional (Propaganda Secretariat under Salazar)

STAR - Special Telecommunications Actions for Regional Development

Sub-SECS - Sub-Secretaria de Estado da Comunicação Social

TDP - Teledifusora de Portugal

TLP - Telefones de Lisboa e Porto

TMN - Telecomunicações Móveis Nacionais

TNCs - Trans-National Companies

TP - Telecom Portugal

TVI - Televisão Independente

UHF - Ultra High Frequency

UK - United Kingdom

UN - United Nations

UNESCO - United Nations Educational, Scientific and Cultural Organisation

UNICE - Union of Industries of the European Community

US - United States

UT3 - Associação Portuguesa de Utilizadores de Telefones, Telecomunicações e Telemática

VHF - Very High Frequency

VAS - Value Added Service

WARC - World Administrative Radio Conference

WATTC World Administrative Telegraph and Telephone Conference

WIPO - World Intellectual Property Organization

WTO - World Trade Organisation
 
 

Preface



The empirical research for this study was conducted between 1993 and early 1995 when the social democrats - led by Cavaco Silva - were in their third consecutive term in office (two of which were with an absolute majority). In October 1995, when we were on the latest stages of drafting this thesis, António Guterres's Socialist Party ascended to power, by winning 112 out of 230 parliamentary seats. During the last decade, the social democrats have dominated not only the government but all the state apparatus and their defeat meant that politicians and civil servants who got their positions on the basis of personal confidence were removed (or will be removed). New faces are being appointed to deal with telecommunications and the media at government level. Similarly, public telecommunications and broadcasting companies have just started operating with socialist appointees. It is obviously too soon to reflect on their performance.

Since the social democrats came to power - which incidentally coincided with the Portugal's accession to the European Community - there has been an unprecedented intensification of political intervention in the communications arena. But, although politicians are intervening more frequently than ever before, they have not prepared themselves to adequately respond to the new challenges. During the research for this study, we became aware of the atmosphere of total confusion and disorientation amongst politicians and domestic actors. Politicians were particularly unsure about the relevance of international actors in national communications and about the potential impact of new technological developments. A few domestic actors took full advantage of this political vulnerability and made sure that their interests were served; others clearly did not know how to benefit from the communications policy turmoil and were left behind.

Undoubtedly, the socialists have inherited a very muddled communications scenario. However, their 44% majority might be enough to guarantee a relatively stable four-years term in office. If so, they will have the opportunity to demonstrate that poor quality broadcasting and inadequate telecommunications are not a political inevitability.

Having critically analysed - from a political perspective - what has been done in the telecommunications and broadcasting sectors particularly since the mid-1980's, this study is a contribution to what we believe to be a much needed debate about the development of a coherent and comprehensive national communications policy. Successful policies for these areas depend not solely on the politicians' attainments but on the people's understanding of the political process (at national and regional levels) and on their ability to adequately scrutinise the development and implementation of policies. In Portugal there is plenty of scope for a meaningful debate about the present and the future of domestic communications systems.