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Friday, November 13, 2009

Battle of Pay TV Operators (2)

There is a big battle between SingTel and Starhub over PayTV. SingTel has won the rights to boradcast the English Premier League (EPL) matches in 2010. Consumers have to switch set top boxes to SingTel to watch these matches. If they wish to watch programmes from both operators, they need two set top boxes and two sets of wiring in their home.

This is time for the regulator (i.e Media Development Authority) to come in and require the PayTV operators to separate the two operations, namely to operate a platform and to provide the contents. There will be a separate charge for using the platform and subscribing to the content. Each platform operator is required to carry the content of any approved provider.

This will give the best choice to consumers. There is competition between the platform operators in pricing and service. There is also a free choice of contents.
The content should not be bundled up with the platform.

There is also a need for the Competition Commission to come in and give a ruling. The Commission is required to ensure that there is free competition in Singapore to give choice to consumers. The bundling of platform and content is monopolistic and bad for consumers. I hope that the Commission will also have a say on this matter.

Tan Kin Lian

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