NTC asked to declare merger of 3 cable TV firms as unconstitutional

GMA Network Inc. has asked the National Telecommunications Commission (NTC) to declare as unlawful the recent merger of Sky Cable, Home Cable and Sun Cable as well as the ownership by certain telecommunications groups of these cable TV companies.

In an administrative complaint filed before the NTC, the country’s second largest broadcast company questioned the merger of Central CATV, Inc. (SkyCable), Philippine Home Cable Holdings, Inc. (Home Cable), and Pilipino Cable Corp. (Sun Cable), branding this as unconstitutional.

SkyCable, Home Cable, and Sun Cable are all currently under one holding company, Beyond Cable, after their respective owners decided to merge to contain losses and achieve improved efficiencies.

GMA likewise cited in its complaint the ownership by the Lopez group of both SkyCable/SunCable and Bayan Telecommunicatons (BayanTel), as well as by the Philippine Long Distance Telephone Co. (PLDT)/Mediaquest Holdings of Home Cable. This, it said, is prohibited by Republic Act 7925 or the Public Telecommunications Act, is detrimental to public interest, and has not been approved by the NTC.

It asked the NTC to immediately issue a cease and desist order against this monopoly combination so that the signal distortion it has caused GMA be stopped; and to declare as null and void the merger, asset or share acquisition as well as the common control among the telecommunications companies and the cable companies.

The merger, it said, amounts to a monopoly since they already control at least 71 percent of the cable TV market, leaving an insignificant market share for small operators and in the process destroying free market competition.

At least 35 companies are said to be under the control of this monopoly combination.

The monopoly combination, it added, has caused widespread signal distortion/degradation in the transmission of GMA’s television signal in violation of the cable companies’ obligation under NTC memorandum circular no. 4-08-88.

It will be recalled that GMA earlier questioned before the NTC the transfer by SkyCable of its channel assignment from Channel 12 to 14. The commission granted GMA’s petition and ordered SkyCable to return GMA 7 to its original channel assignment.