Mass Media systems of the Baltic countries during the last ten years have evolved greatly from structures that reflect the Glasnost and post-Glasnost eras to structures that function according to a free press model. One may draw this conclusion by observing the fundamental changes in the mass media landscape in Latvia, Estonia, and Lithuania. This overview tries to give the overall picture of Baltic media landscape, providing facts to support the above-mentioned conclusion.

In the Baltics during the last three years, a new structure of national daily press has emerged. Soviet-time dailies have disappeared, or their circulation and influence have diminished to a minimum (with the exception of newspapers covering rural readerships, such as Valstieciu Laikrastis in Lithuania, Lauku Avize in Latvia, and Maaleht in Estonia). Dailies have become the main source of written information. Out of the fifteen biggest daily newspapers in the three Baltic countries (five per country), all are privately owned, and some involve significant investments of Western capital (Diena in Latvia, Kauno Diena in Lithuania, and Postimees in Estonia). In all three countries, the readership of the five top dailies exceeds that of all other newspapers combined (Lithuania 52%, Latvia 72%, Estonia 62%).

The main source of revenue of the national dailies of the Baltics is derived from advertising. Companies printing the biggest dailies have established independent systems of distribution and run their own printing plants. The national dailies remain the place where the most significant issues of policy and economy are debated.

During the past two to three years, the local press has started to develop more rapidly. After a difficult period subsequent to privatization, during which some local papers went bankrupt, revenue from advertising and circulation stabilized and even increased. According to the Media analysts, the regional press survived and has found its niche as an important source of regional information and generator of local identity.

In all three Baltic countries, governments do not subsidize newspapers, neither national or local. There are only indirect benefits like 0% VAT for newspaper sales (although advertising revenues are subject to VAT).

The magazine market has also experienced dramatic changes. Out of the fifteen most popular magazines in the Baltics, only two began publishing prior to independence; others are mostly newcomers, created to target a specific readership. It is not surprising that seven out of the fifteen most popular magazines target female readerships of different ages. Other publications are TV guides or family magazines, and only one (Veidas in Lithuania) could be considered a serious general interest magazine. In sum, the magazine readership is fragmented, and magazines tend to focus mostly on entertainment.

Television and radio have expanded the most. There are two reasons for this development. First, after the withdrawal of the Soviets, two broadcast networks were left and were available for local companies to start up new television ventures. Second, Western companies were allowed to privatize, invest, and develop newly formed television companies. This capital and expertise enabled the television sector to expand further. All three countries have managed to establish and retain several private broadcasters (LNK, Baltijos TV, and TV 3 in Lithuania; Latvijas Neatkariga Televizija and TV 3 in Latvia; Kanal 2 and TV 3 in Estonia) and sell them to Scandinavian (TV 3 in Latvia, TV 3 in Estonia, LNK and TV3 in Lithuania) or American (Baltijos TV in Lithuania, Baltcom TV in Latvia) companies. They have retained their public television and radio broadcasters, which are losing the ratings battle to private companies. Besides being the most readily available source of information, private television and radio stations have evolved as primary providers of entertainment, with public broadcasters trying to resist the trend.

All these developments were regulated by numerous laws adopted by the national Parliaments, and many issues regarding media law regulations have been resolved. In the past decade, the Baltics adopted new laws ensuring basic freedoms, allowing mass media to function according to the rules of a democratic society (prohibiting censorship, state ownership of the media, guarantees of freedom of expression, etc.). Further, they have adopted specific legislation regulating the broadcasting sector. Nevertheless, there are still many unresolved areas, such as the modification of broadcasting legislation to conform to the rules of the European Union, the adoption of legislation restricting or prohibiting sex and violence on television, the introduction of legislation concerning access to public information, etc. One could conclude that, politically and economically (with the exception of public broadcasters), media has established itself as an independent social structure. Even though basic media regulations are already in place, the media’s impact on culture and its role in shaping cultural values are yet to be determined.

Marius Lukosiunas

Broadcasting regulations during 1998 in Lithuania was interesting, but unproductive.

At the end of 1997, the Parliament created a Commission to reform the legal provisions regulating Mass Media. Three new pieces of legislation are introduced. This legislation addresses four different areas: the introduction of license fees to finance Lithuanian National TV and Radio (“LNTVR”), a public broadcaster; the reformation of licensing procedures in the area of private broadcasting by giving more power to Radio and Television Commission; stricter control over sexual and violent content in television programs; and the introduction of European production quotas and restrictions on the amount of advertising in accordance with EU directives 89/552/EEC and 97/36/EC and the Television Without Frontiers Convention.

The Commission decided to begin with the introduction of license fees since, according to Law on National Television and Radio, its implementation was overdue. Thus, the members of the Commission split into three groups. The first group, which was comprised of representatives of LNTVR, their supporters, and politicians, believed that legislation regarding license fees should not be given priority. The representatives of LNTVR were not confident that license fees could be collected successfully. They also believed that the introduction of license fees would eliminate advertising revenues and, thus, the loss of an independent source of income. The politicians in the group feared that, by introducing license fees and eliminating budget subsidies, they would lose their only means to influence the public broadcaster.

The second group, which represented the private broadcasting sector, agreed to introduce EU rules restricting advertising (to no more than fifteen per cent per broadcast time per day, no interruptions during the airing of movies, a ban on tobacco and alcohol advertisements, and an introduction of the right to reply, etc.) on the condition that the public broadcaster would be gradually prohibited from carrying advertisements, which would result in an increase of advertising Litas in the private sector.

The third group believed that the greatest priority in mass media was the restriction or prohibition of programs containing explicit sexual and violent subject matter. This group consisted of conservative-minded members of parliament. This group stopped attending meetings once they found that their concern was not the top priority. Shortly thereafter, the Parliament created a Special Commission to propose legislation regulating violent and erotic content in the press, television, radio, cinema and video.

In the meantime, the Commission prepared two drafts regarding license fees and regulation of private broadcasters that conforms to the EU documents. According to calculations made by the Commission, the introduction of license fees was possible. Two methods of fee collection were proposed. The first proposal adds the cost of the license fees to electricity bills, which would increase the cost of 1 KWh by four to fourteen per cent (depending on who was billed for the fees: all electricity consumers, including enterprises, or only natural persons). The second proposal collects the fees in the same manner as taxes on utilities are collected. This proposal means that the new tax would have to be introduced and, therefore, was rejected since it would be politically difficult (politicians were arguing that new tax would result in public demonstrations, while LNTVR officials were arguing that nobody would pay).

For unknown reasons, the idea of collecting license fees together with the electricity fees was never presented to Seimas plenary session and, thus, the resolution suggesting that Seimas confirm the proposal was ignored.

The second group, representing the private sector terminated their support of the amendments to the introduction of EU regulation on European quotas and advertising restrictions after realizing that legislation on license fees and the subsequent elimination of advertising on public channels would not materialize.

With Spring 1998 presidential elections looming, nobody wanted to irritate private television and radio stations. By the time the elections were over, the reshuffling and swearing in of the new government officials was completed, and the summer holidays came to an end, the news had arrived that Lithuania was not going to be included into the first group of EU candidates. Everybody lost interest in upgrading broadcasting legislation up to EU standards. Hopefully, in the year 2000, Lithuania will have another chance to join the first wave of European Union candidate countries.

The license fees issue was also postponed. There were many internal reasons, but one very significant external reason was the economic crisis in Russia. Due to this crisis, the state budget did not collect the anticipated amount of revenue and was forced to cut subsidies to many organizations, including LNTVR. There was a genuine fear that changing the means and ways of financing (especially if anything goes wrong) might damage the public broadcaster even further. It soon became obvious that, with Lithuanian economy struggling not to be hurt by the crisis in the East, there were no politicians who were ready to introduce a new tax. Therefore, by the end of 1998, the only issue that survived on the legislative agenda was sex and violence.

One may say that these are exciting issues and should be kept on the agenda. Unfortunately, the first draft of legislation presented by the Special Commission on the legislation regulating the sexual and violent content of the press, television, radio, cinema and video did not evoke a warm response. The majority of the Special Commission consisted of members delegated by organizations fighting “contemporary” liberalism and willing to impose stricter moral and conservative family values.

The draft legislation presented by the Special Commission recommended a State inspection, having control over the dissemination of television and radio programs. The recommendation granted the State inspection the right to determine what content was harmful to society and what was not. The decisions were to be made according to the criteria listed in the bill, which reflected the preferences and understanding of decency and morality of the members of the Special Commission.

Mass media representatives interpreted the legislation drafted by the Special Commission as a bad joke. Thus, anyone familiar with the workings and interaction of politics and media in Lithuania and who has a political calendar in front of them (local elections in 1999, parliamentary elections in 2000) might predict that this draft legislation will be forgotten quite soon.

In Lithuania, the procedures of elections and the rules of providing electoral information to the mass media are regulated by the following laws: the Law on Elections to the Seimas, the Law on Presidential Elections, the Law on Elections to the Local Authorities, and the Law on Referendum.

The Central Electoral Committee (“CEC”) carried out all the elections and referendums in Lithuania. The CEC, which is formed before the elections or on the occasion of referendum, is a permanent body that organizes and supervises the work of local election committees.

All electoral laws of Lithuania contain basically the same provisions as to the activities of mass media during elections. The laws state that meetings and voting of electoral committees shall be open. Persons present in the meeting hall may transcribe or record the proceedings by audio or visual means. Live broadcasting, however, is allowed only upon permission by the electoral committee chairman.

During the election campaign, the candidates for the Seimas, the office of the President, or the local authority are granted free of charge the right to use the media of the state and local authority. The CEC shall, upon coordination with the heads of radio and television, establish the actual duration and time on public radio and television channels or that of local authority radio and television programs allocated for the campaigning and distribute in such a manner that preserve the principles of equality among candidates.

Campaigning in commercial mass media is restricted only by the size of special election accounts. The candidates may draw money to pay for airtime or newspaper space only from these accounts, which are opened for election period. The electoral laws limit the amount of money that a candidate or a political party may spend on campaigning. After the proclamation of the final election results, the candidates and political parties shall provide the CEC with reports concerning the sources of funds and the utilization of these funds for campaigning. The CEC is obliged to publish these reports in the press.

The laws also provide for the rules of publicizing material discrediting a candidate for Seimas, the office of the President, or the local authority. The media having publicized such material are required to provide the candidate with an opportunity to express a countering opinion.

The Law on Elections to the Seimas and the Law on Elections to the Local Authorities also define the concept of compromising material and provide for the details of the procedure of publicizing the candidate’s countering opinion.

If the means of mass media did not publicize the countering opinion when it was required to do so, the candidate’s countering opinion shall, by the decision of the CEC, be broadcast on public radio or television and be paid for at the same advertisement rate. In such cases, the means of mass media must pay the CEC two or three times (depending on further circumstances) the amount of broadcast cost.

Discrediting material is defined as material that is aimed to influence voters not to vote for an individual candidate and that contains information describing the candidate in negative terms. However, a negative opinion about the candidate publicized in mass media (unlike information, the criteria of truth is not applied to an opinion) shall not be considered to be discrediting material and shall not entitle the candidate to demand publication of a countering opinion.

Campaigning is prohibited thirty hours prior to the commencement of elections and on the day of elections, with the exception of permanent visual campaign material in the places intended therefor, provided that it was displayed at least forty-eight hours prior to the beginning of elections.

Anyone is prohibited from abusing his or her official position in state or local authority institutions, offices, or organizations, as well as in the state or local authority mass media when carrying out an election campaign. The election observers and representatives of the mass media may participate in calculating votes in electoral districts and areas and in establishing election results in electoral areas.

Representatives of the mass media are prohibited from disseminating information about voting results until the report of the CEC is published. The CEC must immediately prepare the report for mass media upon the receipt of preliminary data from electoral committees of electoral areas.

The only area in Estonian media that is strictly regulated during the election campaign is Public Broadcast (ETV). The Law on Broadcasting (1994) says that the Broadcast Council, the body over the Estonian Television and Estonian Radio, must comply with the rules for the election campaign in stations. The rules were in force during the elections and impose the principles of equality and impartiality in the coverage of election campaign on ETV. The rules also regulate the amount and price of advertising. According to the rules, special air time slots are allocated to the candidates and are free of charge.

There is no special election regulation for private media, both print and audiovisual. Political advertising is allowed. The Law on Broadcasting regulates only sponsorship; it is prohibited to use sponsors for the news, current affairs, and political programs. Nevertheless, two private stations transmitted paid programs during the 1995 elections. In the past, newspapers published a large amount of paid materials, which were very often intermingled with editorial materials.

The absence of regulation of private media creates certain problems. This year, dissatisfied groups staged public protests, and some leading journalists, who claimed that the rules governing election finance are inadequate, staged demonstrations before the beginning of the election campaign in February. Estonian newspaper association proclaimed that “there was no point in casting a vote if one does not know who is financing the campaign.” According to the law, parties are required to declare their sponsors and amounts of money received, but apparently one “can write anything on this declaration. Some of these lists read like fairy tales.”

On 9 June, 1998 (No. VIII-774) Seimas of the Republic of Lithuania adopted new legislation to regulate the telecommunications sector. The new Law on Telecommunications replaced the Law of the Republic of Lithuania on Radio Communication. The new law introduced a new regulatory body, the Communications Regulatory Authority, the concept of the National Radio Frequency Allocation Table, and an outline of the future relations between local cable operators and dominant telecommunications services providers. Below are extracts of the legislation that are significant to cable and terrestrial broadcasters.

Chapter I: GENERAL PROVISIONS

Article 1. Purpose and Application of the Law

1. This Law shall establish the telecommunications regulatory framework of the Republic of Lithuania, with due regard to the requirements of the European Union law, regulate relations between the telecommunications operators and the users of their services, the management, use and control of radio communication, as well as the import, manufacturing, use and maintenance of equipment radiating electromagnetic waves, ensure an effective use of radio frequencies, and set forth conditions for promoting competition in the telecommunications sector.

2. This Law shall not regulate licensing activities of radio and television program broadcasters, with the exception of the requirement to submit to the Radio and Television Commission the basic terms and conditions of the activity of coordinated radio and television stations frequencies (channels) and of telecommunications networks intended for broadcasting radio and television programs.

9. Dominant telecommunications operator or dominant telecommunications services provider—a person holding a dominant position in the market under the criteria set forth by the Law on Competition of the Republic of Lithuania.

12. National Radio Frequency Allocation Table—an official document establishing distribution of radio frequencies for radio communication, industry, science, medicine and other needs.

17. Radio waves—electromagnetic waves that can travel across space unrestrictedly, in the frequency spectrum from 9 KHz to 3,000 GHz.

18. Assignment of radio frequency (channel)—an authorization issued by the Communications Regulatory Authority to use a radio frequency or a radio channel subject to prescribed terms and conditions.

20. Radio channels—a group of radio frequencies intended for the transmission and reception of certain information.

21. Radio communication—transmission and receiving of information by means of radio waves.

24. Transmission—part of broadcasting of television programs, belonging to the sphere of telecommunications activities and covering transmission and radiation of radio and television programs via telecommunications networks.

26. Telecommunications—transmission, sending, receiving of signs, signals, written texts, images and sounds or other information via wire, radio, optical, and other electromagnetic systems.

27. Telecommunications line—a physical means of connecting any points of a telecommunications network.

28. Telecommunications operator—a person operating his own or another person’s telecommunications network (maintaining, developing, managing its functioning and interconnecting it with other networks).

29. Telecommunications services provider—a person providing telecommunications services through his own or another person’s telecommunications network.

30. Telecommunications services—services wholly or partially related to the transmission and switching of signals of radio and television programs via telecommunications networks, excluding broadcasters’ activities.

31. Telecommunications network—equipment and other devices that ensure transmission and switching of signals via wire, radio, optical and other electromagnetic systems, including cable television and public television receiving networks.

32. Termination point—physical connections conforming to the technical requirements and constituting a part of the public telecommunications network, necessary for connecting the terminal equipment to the public telecommunications network and maintaining effective communication via the network.

33. Broadcaster—a person having a license issued by the Radio and Television Commission who produces radio and television programs for transmission and transmits them or grants permission to a third party to transmit them completely and unaltered.

34. Universal services—a minimum of telecommunications services approved by the Government that is provided to all customers.

Chapter II: REGULATORY BODIES OF TELECOMMUNICATIONS ACTIVITIES

Article 3. Regulatory Bodies of Telecommunications Activities

1. Telecommunications in the Republic of Lithuania shall be regulated, on behalf of the State, in a manner prescribed by this Law by: 1) the Government or an authority designated by it; 2) the Communications Regulatory Authority.2. Telecommunications for ensuring national defense, security, protection of state borders, civil aviation, safety of railway traffic and the uninterrupted and sound functioning of the energy sector shall be regulated by the relevant public authorities within the limits of their competence.

Article 4. Functions of the Government or an Authority Designated by it in the Telecommunications Sector

1. The Government or an authority designated by it shall perform the following functions:

(1) develop and implement state policy in the telecommunications sector;

(2) cooperate with telecommunications agencies in foreign countries and, within the limits of its competence, represent the Republic of Lithuania in international organizations;

(3) approve the list of universal services;

(4) in cases set out by this Law, issue licenses for establishing and operating telecommunications networks, with the exception of the networks established and operated under the licenses issued to broadcasters by the Radio and Television Commission;

(5) in cases set out by this Law, issue licenses to provide telecommunications services, with the exception of services provided under the licenses issued to broadcasters by the Radio and Television Commission;

(6) after declaration of a state of war or an emergency, or in the event of imminent war, natural disasters or other cases, regulate, within the limits of its powers, telecommunications activities, and issue orders mandatory to all the owners of telecommunications networks and facilities and to telecommunications operators;

(7) perform other functions set forth by the laws and other legal acts of the Republic of Lithuania.Article 5. The Communications Regulatory Authority 1. The Communications Regulatory Authority shall be an independent institution of the Government regulating communications activities and implementing provisions of this Law, acting in accordance with this Law, other laws of the Republic of Lithuania, and its own regulations. The Agency shall be financed from the State budget.

2. Regulations of the Communications Regulatory Authority shall be approved by the Government.

3. The Communications Regulatory Authority shall be a legal entity, having a state seal, and shall be able, in its own name, to acquire property and individual non-property rights and obligations.

4. The Communications Regulatory Authority shall be headed by Director. The Director and the Agency board shall be appointed for a period of five years and may be dismissed by the President of the Republic at the recommendation of the Prime Minister. Its regulations are subject to the approval of the Government,

Article 6. Tasks, Functions and Rights of the Communications Regulatory Agency

1. The Communications Regulatory Authority shall have the following tasks: 1) to ensure that there is no discrimination against telecommunications operators and that they enjoy equal opportunities to enter into agreements on the interconnection of telecommunications networks; 2) to ensure that equipment and devices used in the Republic of Lithuania conform to the technical standards valid in the Republic of Lithuania; 3) to ensure that there is no discrimination against the consumers, that they enjoy equal opportunities of access to public telecommunications networks and telecommunications services; 4) to ensure that operators of public telecommunications network and telecommunications service providers discharge their obligations that may be set in the interests of national defense, national security, the maintenance of public order, as well as during emergencies; 5) to ensure electromagnetic interoperability of equipment and facilities.

2. The Communications Regulatory Authority shall be charged with the following functions:

(1) to establish the procedure and terms and conditions for granting authorizations to engage in unlicensable telecommunications activities and to issue authorizations;

(2) to monitor compliance with the license terms and conditions;

(3) to grant authorizations for the manufacture and use of equipment and devices and their sale, for the import and use of radio transmission and radio monitoring equipment and devices;

(4) to draft the obligatory requirements for equipment and devices, terminal equipment, for the connection of terminal equipment to the public telecommunications network and for the interconnection of telecommunications networks;

(5) to draft and approve regulations for the construction, use and protection of telecommunications networks, general terms and conditions of agreements on the interconnection of telecommunications networks, the procedure for the settlement of disputes between telecommunications operators concerning interconnection of telecommunications networks, as well as rules and regulations establishing the procedure for a joint use of conduits, cable ducts, collectors, towers and poles by telecommunications operators;

(6) to establish the maximum telecommunication services prices and tariffs in cases prescribed by this Law;

(7) to represent the Republic of Lithuania in international organizations on the issue of Radio Regulations, to prepare plans for the development of radio communication and statutory acts on the regulation of radio communication, to carry out international radio frequency coordination;

(8) to prepare and submit to the Government for its approval the National Radio Frequency Allocation Table, develop and implement the strategy for the use of radio frequencies in Lithuania;

(9) to prepare, together with the Radio and Television Commission, and submit to the Government for its approval the strategy and the strategic plan of allocation of radio frequencies for broadcasting and transmitting radio and television programs (the “strategic plan”). The strategic plan shall also include the development of telecommunications networks intended for broadcasting of radio and television programs;

(10) to prepare, control and supervise the National Telecommunications Numbering Plan;

(11) to approve the regulations for provision of telecommunications services, and a model agreement between telecommunications services providers and users;

(12) to settle disputes between telecommunications operators concerning the interconnection of telecommunications networks and a joint use of conduits, cable ducts, collectors, towers and poles.

3. The Communications Regulatory Authority shall have a right:

(1) to control compliance with this Law, telecommunications rules and other legal acts on telecommunications activities;

(4) to undertake radio monitoring;

(5) to assign radio frequencies (channels);

(7) under an obligation of confidentiality, to receive from telecommunications operators all the necessary information related to the fulfillment of the tasks entrusted to it, including financial information.Article 7. Inspector of the Communications Regulatory Authority

1. Control functions of the Communications Regulatory Authority shall be performed by the Inspector of the Communications Regulatory Authority. He shall be appointed and dismissed by the Director of the Communications Regulatory Authority.