The National Communications Commission (NCC) is leaning toward asking Kaiyueh Investment Co (凱月投資), Taiwan Optical Platform’s (台灣數位光訊科技) largest shareholder, to apply for a transfer of business or merger for its purchase of two cable television systems in the south of the nation as per the regulations in Article 23 of the Cable Radio and Television Act (有線廣播電視法).
The deal is under scrutiny, as the buyer is suspected of circumventing the regulations in the act, with the funding allegedly coming from Chinese sources.
The acquisition was approved by the Ministry of Economic Affairs as it deemed that the case did not involve a merger between two cable television providers, which would need NCC approval.
However, the NCC held an administrative hearing on Thursday last week over the applications filed by HYA Cable TV and Ta Yang Cable TV to change their directors, managers and controllers, after the agency found that a retired manager at Chung Tung Cable TV, a Taiwan Optical cable television system, is to become the manager of HYA Cable TV.
NCC spokesman Wong Po-tsung (翁柏宗) on Wednesday said that the commission had reviewed the testimonies provided by all the stakeholders and appraisers at its weekly meeting.
He said that one of the appraisers said that the commission should uncover the ultimate owner of the two cable television systems.
Another appraiser said in his testimony that the deal involves a transfer of business as stated in Article 23 of the Cable Radio and Television Act, Wong said.
In that case, the two cable television systems would have to do more than just submit a list of new directors, managers and controllers, Wong added.
“The commission has yet to rule on the case. We want to study whether Article 23 is applicable in this case,” he said.
If it is ascertained that the NCC should handle the case based on Article 23, both cable television systems would have to refile their applications, Wong said, adding that the commission would then use its criteria to decide whether to approve mergers and investments involving cable television systems.
Article 23 of the Cable Radio and Television Act states that cable system operators must submit an application and an operational plan to the regulator when the case involves a transfer of business, a merger with another system or an investment in an other system. The same rule applies to investments made via affiliates.
Meanwhile, the NCC said it would implement the new Regulations Governing the Classification of Television Programs in May, when programs classified as suitable for children with parental guidance would be divided into those that are appropriate viewing for children aged from 12 to 14 (PG-12) and those appropriate for children aged 15 to 17 (PG-15).
The new classification system for television programs — PG-6, PG-12, PG-15 and R (restricted) — would then be consistent with the classifications for movies and video games.
The commission said that it would partially lift the restrictions on programs on encrypted channels.
With the exception of programs that are classified as having “hardcore pornographic content,” explicit depictions of sexual organs no longer need to be removed or pixelated, it said.
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