Taipei City attacks GIO plan for cable television fees

Planned rules by the Government Information Office (GIO) to empower cable TV providers to set some cable fees came under immediate attack yesterday by the Taipei City Government, which said that the proposal is destined to undermine the interests of consumers.

King Pu-tsung (金浦聰), city spokesperson and the director of the city's Department of Information, told a press conference held at City Hall yesterday that the GIO's proposal violates the essence of the Cable Television Law (有線廣播電視法).

"While the law allows different fees for the different services provided by cable TV providers, it doesn't allow them to decide the fee structure," King said.

The GIO planned to let cable TV providers decide the fees of pay channels, saying a free market creates competition and competition benefits the consumers.

Cable TV providers offer basic channels, pay channels and pay-per-view channels.

The ceiling for Taipei City monthly cable TV fees for the three services is set at NT$550 this year. Under the GIO's proposal, the amount may go up to over NT$1,000 if a consumer is interested in subscribing to the basic channels in addition to four pay channels.

King said the free market theory does not apply to Taiwan's cable business, which is a monopoly.

"How do you expect system providers to formulate a fair fee structure when the market is manipulated by conglomerates," he said.

"No fair competition takes place in a monopoly. The conglomerates hold all the aces and they can do whatever they want at the expense of consumers. That's why we're here to safeguard public interest against monopolies."

Two of the most well-known business conglomerates that hold extensive control over the cable TV market are the Rebar Group (力霸東森企業集團) and the Koos Group (和信集團), which own cable companies and also sell cable channels.

King added that although the city is in favor of charging more fees for more services, the city is against the idea of allowing cable television providers to decide the fee structure.

"I call on the GIO to think twice before it decides to implement the proposal. I'm not doing this for myself but for the interest of the general public," he said.

King added that the GIO should hold public hearings to solicit opinions from experts and local government officials.

"It is, after all, a proposal affecting the interest of hundreds of thousands of cable television subscribers," he said.