Cable TV "2 years extension” required… Last debate as the footing regulation enters its end
Kim Ji Yeong | kjy@ | 2018-05-21 09:57:12

[Digital Times, Kim Ji-yeong] Regulation of market share of so called pay-TV market (footing regulation) with the end deadline approaching for a month. The cable industry has again pulled out the embers, claiming to officially extend the sunset around the Cable TV Broadcasting Association.

On May 20, the Korea Cable Television Association insisted that the cumulative regulation should be extended for two years. It also held a press conference on May 17 against the end. The Cable TV Association urged the Special Committee on Science, Technology, Information and Broadcasting of the National Assembly in May to discuss specific issues on the regulation of aggregate in May, following the recent normalization of the National Assembly.

Meanwhile, the footing regulation restricts the number of subscribers of cable TV, satellite broadcasting, and IPTV to more than 33.33% of all subscribers. It will be sunset on June 27. Meanwhile, the industry has been conducting fierce lobbying of the National Assembly for the resumption of collective bargaining. However, as the parliament raided, the discussions did not work properly and the situation was to be settled, but the cable TV industry caught the last hope as the extraordinary National Assembly was held in May.

The cable TV industry is opposed to the summation regulation ending. When this system is removed, KT, the market leader, worries that it will secure active subscribers. In the past, KT Skylife is expected to re-introduce IPTV broadcasting to the DCS service, which enables satellite broadcasting without a dish antenna. It is argued that cable TV subscribers can go out like the tide and test themselves. At that time, the Korea Communications Commission reported that there was a problem with the DCS service and issued a correction order and recommendation to cancel the subscription. Han Sang-hyuk, director of the Cable TV Association, said, "Although the pre-regulation is regulated as a sum-sum regulation, there is no post regulation."

On the other hand, the Cable TV Association also contended that the regulation of aggregate is contrary to the global media bang. Some argue that if the merger regulation ceases, the media industry will become more competitive by opening up a merger and acquisition (M & A) market for pay-TV broadcasters. Mr. Han pointed out, "Any company, except KT, will be able to afford the market even if it takes over a specific company," he said. "M & A is possible regardless of the aggregate regulation and is not directly related." It seems that IPTV operators such as SK Telecom and LG U Plus are aiming for a situation where they are not actively pushing for cumulative regulation, considering the possibility of M & A.

Also, KT, the No. 1 operator, is waiting for the regulation ending. Currently, the schedule of the Standing Committee of the National Assembly has not been set yet, and there is a difficulty in the composition of the judiciary. KT believes that the sum regulation does not properly reflect the situation of the paid broadcasting market. In addition, KT`s market share has steadily increased, suggesting that restrictions on consumers` rights to view and options are limited due to the cumulative restrictions.

An industry specialist said, "Regulation on aggregation is a matter of which value depends on which part of the broadcasting industry is focused on `unique function` and `industry`." "The gap between the academic and professional groups as well as the industry will continue to diverge."

By Kim Ji Yeong kjy@

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