The National Communications Commission (NCC) has asked the Asia Pacific Telecom (APT) chairman Lu Fang-ming (呂芳銘) to provide more information about the proposed acquisition of Taiwan Broadband Communications (TBC), particularly on how APT plans to raise the service quality of cable systems.
Lu on Wednesday appeared before the commissioners to answer questions about APT’s planned purchase of TBC, which is the nation’s third-largest multiple system operator (MSO).
According to the commission’s data, Lu established a company called Dynami in Singapore after reaching an agreement with Macquarie’s Singapore branch in a bid to acquire the Singapore-listed Asia Pay Television Trust (APTT), which owns 100 percent of TBC.
The deal would enable Lu to indirectly control TBC and its estimated 700,000 cable service subscribers in Taiwan.
The commission’s data shows that 80 percent of the funding for the purchase is to come from Lu himself and 20 percent from Hon Hai chairman Terry Gou (郭台銘).
NCC spokesperson Wong Po-tsung (翁柏宗) said that Lu told the commissioners that the deal was his plan to develop new innovative services in Taiwan.
Lu also talked about the challenges in the era of digital convergence and the visions he has for TBC after the transaction is completed, Wong said.
“However, our concern is whether APT would intervene in the management of TBC following the purchase. Some commissioners also inquired if the funding used to purchase TBC includes investment from China or if the purchase would violate the regulations banning investment of the media outlets or cable system from the government, political parties and the military,” Wong said.
Some commissioners voiced concern that the fiber nodes in TBC’s cable systems are insufficient to offer a quality service, Wong said, adding that Lu was asked to provide additional information on how he planned to address the issue.
Lu will face more questions about the deal at a later administrative hearing, Wong said.
In other news, Wong said the NCC has yet to receive Taiwan Optical Platform Co’s request for approval to purchase Eastern TV.
The commission would focus its review of the case on the source of the company’s funding for the purchase and its investment structure, he said.
It would also examine if the deal would disrupt the order of the industry, compromise consumer interests and generate concerns for media monopolization, he said.
“Taiwan Optical Platform is an over-the-counter company. Should it contain government funding through the direct or indirect investment of four major government funds, it would contravene regulations,” he said.
As Eastern TV has a financial news channel and a regular news channel, Wong said that in similar cases the NCC had imposed several conditions on the transactions.
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