Tuesday, July 18, 2017

PORTUGAL: ALTICE GENERATES POLITICAL UNREST

The acquisition by ALTICE (a french multinational PT’s owner – Portugal Telecom) of Media Capital - proprietary of TVI (Independent Television) and other means of social communication, has generated strong criticism from Prime Minister António Costa. Several personalities already claimed, especially the main opposition leader, Pedro Passos Coelho (PPC) there had never been such a ferocious attack on a private company by a government.
Perhaps there might be some overreaction in PPC’s words highlighting this situation, as the largest attack on a private company. We just have to recall Jose Socrates and his altercations, when somebody or some company opposed to what he intended. Socrates was close to being able to fully dominate the banking and the media systems, according to his interests. It just did not fulfill “all the requirements”, due to the economic crisis in 2011.
Now again with the Socialist Party (SP) in power, and with former supporters and members of the Socrates’ Government occupying key positions, it seems there are signs that the SP intends to control the media in all its fullness.
What we have now and for a long time is a subservience of the portuguese media with regard the power instituted, namely when the Socialists are in government.
Obviously António Costa would not mention such a "heresy" that was highlighted here! He preferred to go the easy way. Supported by his allied parties, the Left Bloc and the Communist Party, he condemned a possible collective dismissal of workers by ALTICE – a common situation in this company which is known for its aggressive business policy. In addition, for the first time he had the courage to admit SIRESP’s (Integrated System of Emergency and Security Networks of Portugal) failures in the fire fighting, only to have the opportunity to criticize PT's communications.
ALTICE, for its part, does not seem to completely rule out a reduction of emplyees, enhancing that PT has more than double the workers compared to competitors  such as NOS and Vodafone. The idea of ​​the French multinational, as stressed by the President of PT "is continuing the process of labor streamlining”.
ALTICE’s business isn’t assured yet, and there will be a strong opposition from the State. The competitor NOS, has already outlined it is ready for the telecommunications and media “war”.
The portuguese have to understand that the rule of law requires freedom and impartiality of the media as well as fair competition and ruling out monopolies.
We don’t know yet what ALTICE's real intentions are. Nevertheless, if you want to promote an outstanding service with independent news, that is already a good step forward.


Miguel Verde - Senior Consultant, Professor of International Relations

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