Tue, Dec 15, 2009 page4

• Media firms eye NCC rule change

  EFFECTS Under a media amendment that bars the government, political parties and the military from running stations, even small stock shares can block new channel applications

  • By Shelley Shan / STAFF REPORTER
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  Media operators yesterday differed in opinion on the National Communications Commission’s (NCC) proposed amendment to the Satellite Broadcasting Act (衛星廣播電視法), which would partially lift restrictions on the government, political parties and military from owning shares in the media.

  The Legislative Yuan passed an amendment to the Radio and Television Broadcasting Act (廣播電視法) in 2003 that required the government, political parties and the military to withdraw from the media. They were also barred from holding management positions or shares in media corporations. The amendment was said to ­target three terrestrial television services — Taiwan Television, China Television and Chinese Television Service. The legislature then ruled that the same amendment must be made to two other media laws — the Satellite Broadcasting Act and Cable Television Act (有線廣播電視法).

  The amendment has been enforced for six years, first by the Government Information Office (GIO) and later by the NCC.

  Now, the NCC has proposed two solutions. Option A would cap direct investment from the government, political parties and the military at 5 percent and indirect investment at 10 percent. Option B would continue to ban direct investment, but would ­remove the ­restrictions on indirect investment.

  Chung Kuo-chiang (鍾國強), section chief of Chunghwa Telecom’s legal department, said in a hearing yesterday that the amendment did not achieve its intended purpose.

  “Audiences can still tell which television stations are ‘blue’ and which are ‘green,’” Chung said. “The policy has had negative effects. One of them was to prevent Chunghwa Telecom from offering digital content services.”

  Chung also said the media used to be a resource controlled by a few people, and now there are more than 100 channels that can be run by anyone.

  “Political convictions are like religions, and if the NCC can allow so many religious channels to be on television, why not allow political parties to establish stations?” he asked.

  Chen Chao-ping (陳朝平), chairman of the Cable Broadband Institute in Taiwan, said the amendment did not stop the government from controlling the media.

  “Soon after the amendment was passed, the government intervened in the operation of the Broadcasting Development Fund and the Public Television Service,” Chen said. “Rather than own the media, the government simply embeds its agenda in the television programs, which is probably the worst and the most disgusting way of promoting itself.”

  Both Chen and Chung suggested that the restrictions on the investment from the government, political parties and the military be removed completely.

  A representative from the ­Public Television Service (PTS) said the station hopes that the NCC’s proposed amendment will exclude PTS and its affiliated services, which are largely funded by government agencies.

  Chuang Chuen-fa (莊春發), a professor at Jinwen University of Science and Technology, said the NCC should clearly define what “controlling the media” means.

  “Some may actually control a media company, which might not be reflected in the shareholding scheme,” he said.

  The NCC has encountered several problems while executing the amendment.

  Last year, the application of Elta TV to offer a channel service was turned down because one of its investors, Delta Electronics, had about 2 percent of shares owned by four major government funds.
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