After taking part in a public hearing last week on the proposed acquisition of China Network Systems (CNS) by Want Want China Broadband for more than NT$70 billion (US$2.4 billion), I have been beset by complicated feelings.
Want Want China Broadband is owned by a number of big corporations, including the Want Want Group, which has a 51 percent stake; Cathay Financial Holdings, which has 25 percent and the Eastern Multimedia Group with 10 percent.
If the merger goes through, we will be forced to accept a cross-media leviathan spanning not just wireless and cable television, but also newspapers, magazines and Internet services.
Despite the importance of the issue, the Consumers’ Foundation and the National Security Bureau did not send representatives to take part in the hearing, while the representative from the Consumer Protection Commission simply said that everything would be done in accordance with the law. Members of the public were allowed to attend the hearing, but they had no right to speak at it.
The merger proposal affects nearly 1.2 million viewers of cable TV services provided by the CNS group of companies, including Wonderful Cable TV in Taipei’s Da-an (大安) and Wenshan (文山) districts, New Vision Wave TV in New Taipei City’s Jhonghe (中和) and Yonghe (永和) districts, and 11 cable TV companies in Greater Tainan and Greater Kaohsiung — yet not a single borough warden was invited to speak. Company spokespeople put forward their points of view during the three-hour-long hearing — without challenge or interruption.
In addition, the companies presented their complicated acquisition proposals for the first time at the hearing. Experts, academics and stakeholders had no chance to read the proposals beforehand, and consequently were not able to offer any kind of constructive, accurate assessment of the plans at the meeting. If anything, their attendance merely served as a tool to endorse the corporations’ position.
Several years ago I served as an expert witness with the District of Columbia Public Service Commission, which regulates monopoly services in Washington. The US has an established system of public hearings for investigating and appraising public policy, designed to allow fair discussion among the parties concerned — the public, business and government.
For example, when electricity suppliers want to raise their prices, each of these three parties has to submit its proposal papers three months before a public hearing. This enables expert witnesses for the other two parties, such as financial and engineering experts, to examine the plans thoroughly. Having done so, lawyers representing the public, business and government are in a position to cross-examine expert witnesses brought in by the other two parties at the public hearing.
Based on this experience, I suggest a number of measures that should be taken.
First, before the CNS acquisition is approved, National Communications Commission members, the firms involved, consumers, experts and academics should be given the opportunity to thoroughly investigate the proposals. A series of public hearings should then be held so that the truth of the matter can be clarified step by step.
Second, the government should not just assist companies to develop their business, but also actively take steps to safeguard consumers’ interests.
Third, and even more important, is for consumers to pool their efforts to ensure that their viewing and listening rights are not adversely affected.
Jang Show-ling is a professor of economics and director of the Research and Development Office at National Taiwan University’s College of Social Sciences.
Translated by Julian Clegg
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