Eliminating signal piracy seen to double cable TV subscribers

The elimination of cable television (CATV) signal piracy could easily double the number of subscribers in the country, a group of cable operators said.

Officials of the Philippine Cable Television Association (PCTA) estimated that aside from the 1.5 million reported cable TV subscribers in the country, there are at least 500,000 more that are illegally connected. "If this 500,000 illegal subscribers become paying subscribers, then we could easily bring up our subscriber base," PCTA president Toni Selda said.

In order to minimize, if not put an end, CATV piracy, the industry is investing in addressable set-up boxes (either analog or digital) as well as modernizing the head-end stations.

At least five provincial CATV companies have so far installed analog set-up boxes in the homes of their subscribers. These are Satellite Cable Network in San Fernando, Pampanga; the Angeles City Cable TV Co., Paras Satellite in Cagayan de Oro, the Mariveles CATV in Bataan, and the RBC Cable in Tuguegarao.

PCTA officials revealed that a second-hand analog set-box cost around $20 per box compared to a digital unit that sells for $130 per box in the US as there are no second-hand units available yet. In the case of the San Fernando, Pampanga company, it spent another P3 million to modernize its head-end, on top of its expenses for acquiring the second-hand analog boxes.

The difference between analog and digital set-up boxes as far as putting a stop to signal piracy is that in the former, it needs constant adjustment of frequencies on the part of the operator while in the latter, the system adjusts by itself, making it difficult for the signal pirate to tap into the system.

Both are programmable. Via the set-up boxes, the CATV operator can offer price tiering, depending on the number of channels each tier or plan (whether starter, basic, premium or international) would have.

The biggest impact on the local CATV industry, however, would come from the installation of the consolidated Sky Cable and Home Cable of digital set-up boxes in the homes of their subscribers sometime middle of this year. Sky and Home account for around 70 to 80 percent of total CATV subscribers.

ABS-CBN Broadcasting earlier extended a $30-million loan to Sky Cable-Home Cable for the updating of interest payments on the latter’s P1.5 billion in combined loans which have earlier been restructured by its creditors as well as for the acquisition of digital set-up boxes. Sky Cable president Eugenio Lopez III earlier said that the introduction of addressable set-up boxes is the only way to put a stop to signal piracy.

PLDT chairman Manuel Pangilinan earlier told The STAR that Home Cable has no plans of availing of an option given by Sky Cable to put up part of the $30 million in order to retain Home’s 30-percent equity in the consolidated Sky-Home operations.

Officials of Sky Cable revealed that they have already completed the transfer of Home Cable’s assets to Sky as payment for which Home will be getting shares of stocks in Central CATV, the corporate parent of Sky.

As a result, Central CATV will own both Sky Cable and Home Cable, with the PLDT group owning shares in Central CATV and the Lopez group owning majority stake.