Unitary regulation in auto-disuse level…Paid broadcasting may be released from ``33.33% bolt’
Kim Ji-young | kjy@ | 2018-05-03 13:43:58

[Digital Times, Kim Ji-young] The future of cumulative regulation ahead of the June finalization is still uncertain. It has been scheduled to decide the fate in the extraordinary National Assembly in April. However, the National Assembly did not open properly. In fact, it failed to proceed with the discussion itself. There is a possibility of a natural sunset as long as there was no reversal, such as opening the National Assembly in May.

According to the National Assembly on May 2, the entire meeting of the Scientific and Technical Committee for Broadcasting and Communications of the Ministry of Science and Technology was not held once in April. Therefore, the assembly could not end the discussion on the cumulative regulations that were scheduled to be treated as one point in April.

The combined regulation restricts a specific business group from exceeding 33.33% of all subscribers by adding subscribers to cable TV, satellite broadcasting, and IPTV. `Pay-TV sum regulation` is expected to be abolished automatically in June. KT (KT Skylife, etc.) group wants finalization but competitors like cable TV want to survive.

As a result, there is a concern in the National Assembly to hold an extraordinary session in May to discuss whether the summit regulation is sunset. A member of the National Assembly mentioned, "There will be procedural time to proceed with the extraordinary standing meeting at the extraordinary National Assembly in May and to initiate the bill at the criminal justice office if only the consensus is reached between the ruling and opposition parties."

However, it is not known whether the discussion will be realized in the National Assembly. Despite, the temporary parliamentary session in May is unclear and the provisional parliamentary session is held, it is difficult to guarantee that the legislation will pass the bill. Besides, the Democratic Party lawmaker is pushing for an amendment of the broadcasting law to keep the sum regulation, and to pass it before June.

The nationwide parliamentary election to be held on June 13 is also a variable. The official election campaign period from May 31, the National Assembly can invite lawmakers to the districts for election campaign. The industry is not seeing enough real-time time.

The problem of the cumulative regulation has been attracting attention as it is a variable of the paid broadcasting market. The abolition of the regulation finalization is becoming a mere merger and acquisition (M & A) fleet of the pay-TV industry and the industry is keenly aware that the pay-TV market may change at present. The industry expects M & A activity will be boosted as the market cap ceases to exist once the summation regulation is set as scheduled.

In fact, since the beginning of this year, mergers and acquisitions, which are represented by mobile carriers and cable TVs, have been continuing. LG U Plus and CJ Hello, which were merged in the merger case, are expected to gain a market share of 23.39% at the same time. SK Broadband, the No. 2 operator, is ahead of its market share of 13.38% by more than 10 % points. The rest of the companies, except KT with a market share of 30.45%, the No. 1 operator, oppose the finalization in public. However, as MSOs are on the market and they are somewhat hesitant to keep the existing regulatory regime. A member of the National Assembly said, "The possibility of opening the extraordinary session of the National Assembly in May is open. It is possible to agree dramatically to discuss the urgent first agenda, the regulation of combined pay TV broadcasting."

By Kim Ji-young kjy@dt.co.kr

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