Ubc And Thai Cable Tv Operators Face Reform

[george]

New Year shake-up looms as cable-television operators face reform

BANGKOK: The cable TV industry will be forced to undergo a major change next year when the state attempts to impose rigid rules on all operators. The government's plan to allow all of them to run commercials will also affect the industry.

Whether viewers will benefit from these changes remains to be seen, but the cable TV operators are likely to enjoy lower operating costs thanks to the revenue from paid commercials.

Today, only operators beaming programmes via the satellite channel and under the license of the Public Relations Department (PRD) can sell air time to advertisers.

The main pay-TV operator, United Broadcasting Corp Plc (UBC), is currently unable to run advertising as it is a concessionaire of the Mass Communication Organisation of Thailand (MCOT).

UBC beams programmes via both satellite and cable channels.

Thongthong Chandransu, chairman of MCOT's board, said recently that the board is expected to approve UBC's request to run advertising, starting in January next year.

According to a PRD source, that concession would apply to all pay-TV operators.

However, a television industry source said that iTV, owned by Shin Corp Plc, which was founded by Prime Minister Thaksin Shinawatra, would also benefit from the change.

"Once the cable TV operators can run commercials, iTV can claim that its revenue is being affected by the competition for advertising revenue and that the government should reduce its concession fee," he said.

Under the terms of its concession, iTV can ask for such a reduction if its revenue is affected by a new entrant in the market.

Shin's chief executive Boonklee Plangsiri has already indicated the television channel would immediately ask for the fee reduction from if its revenues were hurt.

This year, iTV paid Bt800 million to the government under its 30-year-contract, while Channel 7 paid only Bt185 million.

While planning to give cable TV operators the right to run commercials, the government is also imposing iron-fist rules on the industry to bring illegal players within the law, in line with its plan to collect more tax.

There are an estimated 470 Thai cable TV operators but only 78 have licenses.

Out of the total, 280 have asked for licenses from the PRD but were turned down after it was found they were using illegal broadcast frequencies.

Under the legalisation policies announced by the government, illicit pay-TV operators have until February next year to register themselves or face a major clampdown.

To go straight, the illegal operators will have to ask the Metropolitan and Provincial Electricity Authorities to install the cable lines needed for their service.

Only when they have receipts from the electricity agencies can they ask for a cable TV license from the PRD.

They also need to submit their broadcast programme plans for approval by the PRD every month. Their licenses will be revoked if they ignore the rule.

Under other regulations, all programmes must comply with copyright rules and cable operators will have to collaborate with the regional and metropolitan state units to promote state information via their channels.

In order to be considered legitimate, all cable TV operators will have to submit evidence they have paid tax and details of their customer lists to the PRD every year to prove that they are still in operation.

The government has assigned a clutch of state units to look into the matter, including the Royal Thai Police, the PRD, the Customs Department, the Revenue Department, the Intellectual Property Department and the Metropolitan and Provincial Electricity Authorities.

All the regulations will be enforced only until the establishment of the National Broadcasting Commission, whose role is to deregulate the market and issue new licenses.

Boonsong Nimsritakul, president of the Cable TV Association of Thailand, said that his body supports the policy, which would boost industry growth.

"It'll also set new standards for the industry," he said

--The Nation 2003-12-26

[the gentleman]

I welcome the commercials, I think we all get tired of that crap music in between edits......

[Axel]

I got tired of that crap in between the crap music......

Now, if we get some commercials, they are usually high quality and better than any breaking news on CNN

[Sick Boy]

I agree heartily, that music has me foaming at the mouth. I remember having to be physically restrained after weeks of "A moment with Kamala and friends".

Why do UBC allow us to see a few seconds of some commercials before they jump in with their nauseating muzak? Surely the person manning the controls must know that an advert is coming up. It's like he's constantly getting caught out.

Weird.