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Approval not needed, MDA says of StarHub's subscription fee hike
By Loh Chee Kong, TODAY | Posted: 15 June 2007 0622 hrs

 
 
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SINGAPORE : Starhub Cable Vision (SCV) was "not required" to seek the approval of the Media Development Authority (MDA) on its decision to raise subscription fees, the regulatory body said on Thursday in response to Today's queries.

Nevertheless, MDA added: "StarHub is required to inform MDA of any changes to its published subscription rates and it did so."

Under the existing media competition code, MDA does not regulate the pricing of media services.

Asked to comment on the fact that the monthly subscription fee for SCV's sports package had more than tripled in the last three years, and whether consumer interests were adequately protected, MDA noted that content prices, "particularly those of popular sports like the English Premier League have been increasing worldwide".

In the United Kingdom, MDA pointed out, rival pay-TV operators BSkyB and Setanta recently paid a total of £1.7 billion ($5.20 billion) for broadcast rights - a 66-per-cent increase over what BSkyB dished out the last time round, when it had enjoyed exclusive broadcasting rights.

Meanwhile, MDA is revising its media competition code. Among other changes, it is considering price controls - a proposal that has met with strong resistance from incumbent media players. A second round of consultation would be held and the process completed by year's end.

Mr Seah Seng Choon, the executive director of the Consumers' Association of Singapore (Case), said it would support price regulation in markets "where there is a single dominant player". "At least then there would be somebody watching over the manner in which the price adjustments are made," he said.

Case felt "very strongly" about SCV's stance on not allowing recent subscribers to terminate their contracts without incurring penalties. It has written to SCV and plans to meet with its representatives.

SCV told Today it would reply to Case's letter "by providing more information about our rate adjustments". -
TODAY

 

 



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