It was the main bidder out of two, a television project operated by established local professionals, for such a network, contrary to competing channels which were backed by existing companies.
In October 2005, Portugal Telecom, owner of TV Cabo, announced its intention to open a generalist television network.
The channel would target an audience of 1,2 million viewers who had cable but had competing operators, with TV Cabo distributing the signal to all providers.
PT president Miguel Horta e Costa attempted to use the channel as a platform to lure more subscribers to TV Cabo.
Francisco Pinto Balsemão, owner of Impresa (and SIC), criticized the government's posture under the grounds that a fifth channel could destabilize the advertising market.
[12] The project already had a website and Carlos Pinto Coelho, one of its fitures, was keen on the idea that it would provide a public service alternative to the two established private channels, which had to be used at 100%.
The primary cause for the exclusion was Telecinco demanding a viewership share of 20 to 25% (which would mean surpassing SIC right from the beginning) and an ad revenue of €65 million in its first year on air.
[19] On 27 October, the Lisbon Administrative Tribunal approved Telecinco's precautionary message, blocked from its bid, while filing an appeal to ERC.