SkyCable asks NTC to recall competitor's direct-to-home license

Posted at 05/21/2009 5:36 PM | Updated as of 05/21/2009 6:40 PM

Lopez-led SkyCable Corp. has called on the National Telecommunications Commission (NTC) to recall the provisional authority it awarded to First United Broadcasting Corp. (FUBC).

NTC has recently allowed FUBC to install, operate, and maintain a direct-to-home/direct-to-user (DTH/DTU) broadcast system nationwide. SkyCable branded the move as an "unnecessary duplication of an existing service."

"The entry and subsequent operation of FUBC as a DTH TV service provider will result in unnecessary duplication of an existing service that is at present adequately provided by SkyCable and other existing cable TV service providers, not to mention existing DTH/DTU service providers," SkyCable said in a filing with the NTC.

Citing losses incurred by other cable firms for the past years, SkyCable said that the cable television market can no longer support a new entrant, especially if it offers "substantially similar services as those offered by Destiny Cable Inc., Global Cable Inc., SkyCable, and the Philippine Multi-Media System Inc."

"From the obvious lack of profitability, it can be reasonably concluded that the market is saturated and incapable of supporting another service provider," SkyCable explained.

Given this, SkyCable said entry of FUBC may only deprive existing cable firms of already limited profits. "Such deprivation will result not only to a mere reduction in earnings but, more importantly, to the unfair dispossession of sufficient gains to pay a fair rate of interest on its capital investments."

Last month, SkyCable said it spent P6 billion to make available two high-definition (HD) channels to its cable subscribers in Metro Manila.

It would take 2,000 subscriptions to recoup its investment, which includes decoders, a device to receive the signals of the HD channels, and transmission equipment.


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