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27-04-2013, 01:28 PM
SingTel should have seen it coming: MDA
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Source
Business Times
Date
26 Apr 2013
Author
Joyce Hooi
Telco well aware of risks, implications when bidding for BPL, says regulator
THE Media Development Authority (MDA) was unmoved by SingTel's dire predictions of higher Barclays Premier League (BPL) subscription fees and said yesterday that the pay-TV operator should have foreseen the implications of the cross-carriage rule.
"The cross-carriage measure has been widely consulted upon before it came into effect since 2011. SingTel cannot claim to be unaware of the policy objectives and requirements of the cross-carriage measure," the MDA said.
"In negotiating the BPL contract, SingTel would have taken into account commercial and legal risks including the possibility that the cross-carriage measure may be triggered ... and the implications on pricing."
MDA's statement was in response to SingTel's pronouncement on Wednesday that MDA's decision to make SingTel share BPL content with StarHub would leave the red camp with little incentive to subsidise BPL content for StarHub viewers as it had for its own customers so far.
And since the MDA's cross-carriage rule mandates one price across all operators for the same content, SingTel's mio TV would have to levy these higher fees on both StarHub and new mio TV BPL subscribers when BPL season starts in August.
MDA, however, had no truck with that, saying, "The setting of prices for consumers is a matter of commercial consideration by SingTel."
StarHub, in response to SingTel's assertion that the decision tilts the playing field in the former's favour, said archly yesterday: "The decision benefits Singapore viewers who now have the choice to watch the BPL on their preferred pay TV operator's platform for the same price."
"Interestingly, there were no objections from industry players (including our competitor) when we cross-carried the Uefa Euro 2012 on our competitor's platform last year."
Under the cross-carriage rule, operators have to share content bought exclusively with rival operators upon request. Mio TV's BPL content, acquired on a "non-exclusive" basis last year, was deemed "exclusive" by the MDA on Wednesday.
It found that SingTel's deal with Football Association Premier League had clauses which were likely to restrict the BPL rights from being acquired by another pay-TV retailer.
SingTel insists the deal is a non-exclusive one and is appealing against MDA's decision.
On Wednesday, SingTel also pointed out that its sports offering of $34.90 a month, which includes BPL, was priced cheaper than StarHub's offering in 2009.
When asked to comment, StarHub said: "This is an unfair comparison since the $49 cited is the sum of three basic groups ($24) and the sports group ($25). Furthermore, at the time, the Sports Group alone carried 13 channels which covered a wide range of sports beyond BPL content such as tennis, golf and Formula One," it said.
And while SingTel has asked for a "stay of implementation" so that it can hold off on working with StarHub to share the content while the appeal is heard, StarHub is forging ahead, regardless.
"We are complying with MDA's direction and are already making operational arrangements in preparation for the cross-carriage of the next three BPL seasons," StarHub said.
There is little to envy about SingTel's position. "This is a major setback for SingTel in its quest to capture a bigger piece of the pay-TV pie. By having to share the BPL, SingTel's ability to have users sign up to mio TV is sharply reduced," CIMB Research analyst Kelvin Goh said in a report yesterday.
StarHub said yesterday that it was "too early" to give estimates on viewership figures.
It will be able to carry BPL content without paying for the broadcast rights. Its viewers will subscribe for BPL content from SingTel, but may remain on the StarHub set-top box. StarHub will be paid a carriage fee based on the number of channels, set up fees and also a per-customer fee.
"StarHub stands to gain a little as this lowers the likelihood of churns and generates revenues from providing cross-carriage," said CIMB's Mr Goh.
The fight for market share is far from over, said Vivek Couto, executive director of Media Partners Asia. "StarHub can't just depend on the BPL. It's got to have an even stronger and more seamless product," he said.
As SingTel and StarHub slug it out on the pitch, CIMB's Mr Goh summed it up for the investor: "Stay invested in M1, our top Singapore telco pick."
Both SingTel and StarHub closed three cents higher at $3.78 and $4.58, respectively, yesterday.
Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.
Share on twitter Share on email Share on print
Source
Business Times
Date
26 Apr 2013
Author
Joyce Hooi
Telco well aware of risks, implications when bidding for BPL, says regulator
THE Media Development Authority (MDA) was unmoved by SingTel's dire predictions of higher Barclays Premier League (BPL) subscription fees and said yesterday that the pay-TV operator should have foreseen the implications of the cross-carriage rule.
"The cross-carriage measure has been widely consulted upon before it came into effect since 2011. SingTel cannot claim to be unaware of the policy objectives and requirements of the cross-carriage measure," the MDA said.
"In negotiating the BPL contract, SingTel would have taken into account commercial and legal risks including the possibility that the cross-carriage measure may be triggered ... and the implications on pricing."
MDA's statement was in response to SingTel's pronouncement on Wednesday that MDA's decision to make SingTel share BPL content with StarHub would leave the red camp with little incentive to subsidise BPL content for StarHub viewers as it had for its own customers so far.
And since the MDA's cross-carriage rule mandates one price across all operators for the same content, SingTel's mio TV would have to levy these higher fees on both StarHub and new mio TV BPL subscribers when BPL season starts in August.
MDA, however, had no truck with that, saying, "The setting of prices for consumers is a matter of commercial consideration by SingTel."
StarHub, in response to SingTel's assertion that the decision tilts the playing field in the former's favour, said archly yesterday: "The decision benefits Singapore viewers who now have the choice to watch the BPL on their preferred pay TV operator's platform for the same price."
"Interestingly, there were no objections from industry players (including our competitor) when we cross-carried the Uefa Euro 2012 on our competitor's platform last year."
Under the cross-carriage rule, operators have to share content bought exclusively with rival operators upon request. Mio TV's BPL content, acquired on a "non-exclusive" basis last year, was deemed "exclusive" by the MDA on Wednesday.
It found that SingTel's deal with Football Association Premier League had clauses which were likely to restrict the BPL rights from being acquired by another pay-TV retailer.
SingTel insists the deal is a non-exclusive one and is appealing against MDA's decision.
On Wednesday, SingTel also pointed out that its sports offering of $34.90 a month, which includes BPL, was priced cheaper than StarHub's offering in 2009.
When asked to comment, StarHub said: "This is an unfair comparison since the $49 cited is the sum of three basic groups ($24) and the sports group ($25). Furthermore, at the time, the Sports Group alone carried 13 channels which covered a wide range of sports beyond BPL content such as tennis, golf and Formula One," it said.
And while SingTel has asked for a "stay of implementation" so that it can hold off on working with StarHub to share the content while the appeal is heard, StarHub is forging ahead, regardless.
"We are complying with MDA's direction and are already making operational arrangements in preparation for the cross-carriage of the next three BPL seasons," StarHub said.
There is little to envy about SingTel's position. "This is a major setback for SingTel in its quest to capture a bigger piece of the pay-TV pie. By having to share the BPL, SingTel's ability to have users sign up to mio TV is sharply reduced," CIMB Research analyst Kelvin Goh said in a report yesterday.
StarHub said yesterday that it was "too early" to give estimates on viewership figures.
It will be able to carry BPL content without paying for the broadcast rights. Its viewers will subscribe for BPL content from SingTel, but may remain on the StarHub set-top box. StarHub will be paid a carriage fee based on the number of channels, set up fees and also a per-customer fee.
"StarHub stands to gain a little as this lowers the likelihood of churns and generates revenues from providing cross-carriage," said CIMB's Mr Goh.
The fight for market share is far from over, said Vivek Couto, executive director of Media Partners Asia. "StarHub can't just depend on the BPL. It's got to have an even stronger and more seamless product," he said.
As SingTel and StarHub slug it out on the pitch, CIMB's Mr Goh summed it up for the investor: "Stay invested in M1, our top Singapore telco pick."
Both SingTel and StarHub closed three cents higher at $3.78 and $4.58, respectively, yesterday.
Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.
