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View Full Version : Sky fears rivals will win numbers game



Apsattv
29-06-2008, 12:10 AM
From http://www.stuff.co.nz/stuff/4599798a13.html

Sky Television says it is worried that the Government may be swayed by calls to split up or otherwise hobble the broadcaster, and that numbers may be against it.


The Culture and Heritage Ministry is conducting a review of broadcasting regulation and is due to report back to the Cabinet next month.

Options could include the "unbundling" of Sky set-top boxes, "anti-siphoning controls" that would limit its ability to buy exclusive broadcasting rights to sporting events, and "must carry" obligations that might force Sky to carry competing channels on terms set by regulators.

TVNZ has accused Sky of anti-competitive behaviour and called in May for the operational separation of Sky, while TV3 owner TVWorks said it should be forced to divest itself of free-to-air channel Prime.

But in a newly filed cross-submission, Sky accuses TVNZ, TVWorks, Freeview and the Screen Production and Development Association of making "misleading and inaccurate statements". It says TVNZ has no evidence to back its claim Sky is unfairly cross-subsidising Prime, and it denies hoarding free-to-air broadcasting rights.

It says officials must verify claims made by its critics before making recommendations to ministers, and that TVNZ, TVWorks and Freeview are making "thinly veiled attempts" to attack Sky for their own ends.

"This is particularly important because of the potential impact that even consulting on issues such as anti-siphoning or `must carry' legislation could have on listed share prices," Sky says.

The company labelled a summary of submissions put together by the Culture and Heritage Ministry as "inadequate" and said it was concerned about how the Government would use the document.

The ministry said in its summary that a "clear majority" of the 80 submissions it received called for a single regulator for broadcasting and telecommunications and that most favoured an open access regime and "must carry" regulations.

Sky said it feared decisions might be based on "a simple number counting game of submissions for and against particular options".