New NBTC rules in place to block radio, TV domination

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NBTC
New NBTC rules in place to block radio, TV domination
Watchiranont Thongtep
The Nation

BANGKOK: -- The new regulations governing mergers and acquisitions, cross-holdings and domination in the radio and broadcasting industry are now in effect after publication in the Royal Gazette on Wednesday.

The regulations that the National Broadcasting and Telecommunications Commission (NBTC) aims to avert market domination by media conglomerates in the Bt80-billion broadcasting industry will have a huge impact on press freedom, consumer rights and the public interest. Radio and TV licence holders that want to take over or buy-up more than 25 per cent directly or more than 50 per cent indirectly in another licensed company must submit their plan to the broadcasting regulator for approval at least 60 days in advance.

The package must include its objectives, a market analysis and overview, financial statements, company reports and supporting documents.

After getting the green light, the buyers must declare and update their financial statements, market analysis and company structure to the regulator every six months for two years.

NBTC member Thawatchai Jittrapanun said that with these regulations, the watchdog could investigate any patterns of M&A and cross-holding in the broadcasting business both horizontal and vertical.

In the hope of preventing market domination in the future, the broadcasting regulatory is looking into whether the acquisition by software and IT solutions provider Solution Corner (1998) of a 12.3-per-cent stake in Nation Multimedia Group breached the digital TV auction rule on cross-holdings in the news-channel category. SLC is the parent company of Spring News Television, operator of digital channel Spring News TV, while NMG wholly owns news channel Nation TV.

Referring to the auction for the 24 commercial digital-terrestrial TV licences, Thawatchai said each bidder could hold up to three licences, but not more than one in the same category.

On Tuesday, the NBTC's legal advisory committee agreed to extend the enforcement of the digital TV auction rule on cross-holdings to 15 years of licensing. According to Part I of the appendix to the rule, a major shareholder is defined as a person or juristic person holding more than 10 per cent of a company's shares.

According to Part II, anyone with voting power exceeding 25 per cent of the company's shares is defined as a major controller.

Under the rule, major shareholders and controllers are not allowed to hold more than one licence in the same category. If the regulator gets the go-ahead from the Broadcasting Committee, it might order the licence holder to reduce its stake to comply with the rule, he added.

Source: http://www.nationmultimedia.com/business/New-NBTC-rules-in-place-to-block-radio-TV-dominati-30252505.html


-- The Nation 2015-01-23

[arrowsdawdle]

Does this mean the you know who will give up one so they don't own them all? Silly politicians, you don't need to own them to control them.

[seajae]

pity they dont outlaw political stations so we dont have to listen to all the red/yellow bullsh*t or ptp/democrat spin.