The National Communications Commission (NCC) yesterday said it has yet to receive China Network Systems’ (CNS) application for a merger with Ting Hsin Group, adding that it would review the application based on regulations.
Last month, Ting Hsin Group announced it would purchase CNS’ cable television services. However, the group’s Wei Chuan Foods Corp was fined for selling adulterated oil last year. The company was also implicated in the ongoing nationwide food scare that ensued after it was found that recycled waste oil was being used to make food products.
Earlier, some media experts warned that the group’s acquisition of CNS would limit the coverage of news related to the group, particularly those on the food safety issues facing the group.
In response, NCC spokesperson Yu Hsiao-cheng (虞孝成) said the commission has yet to see an application and an operational plan filed by Ting Hsin Group.
“After we receive the application as well as the operational plan, we will take various factors into consideration when we review the case, including the shareholding and relevant regulations in the Cable Radio and Television Act (有線廣播電視法). Our staff will conduct a comprehensive analysis of the transaction and present their findings to a commissioners’ meeting for a final ruling,” Yu said.
Earlier, Yu had said in a media interview that the transaction may be less complicated than the Want Want-CNS deal, in which Want Want’s media ownership generated concern that the deal would give the group a monopoly on public opinion. However, Yu said he made that comment before the food safety crisis earlier this month.
“The commission has neither a a preference nor set position in the acquisition. Each case is reviewed based on the laws of the nation,” Yu said. “We are happy to see more funding pumped into the cable television industry, which brings in new technology and expands the scale of operation.”
Yu did not say if the recycled waste oil incident would affect the commission’s review of the case.
Regarding the grievances expressed by Tatung Infocomm after its license renewal application was turned down by the commission, Yu said the WiMAX operator can always seek restitution through administrative lawsuits.
“As the administrative authority over the telecommunications industry, we consider both the interests of consumers and the industry’s development,” he said.
“If the company believes that our ruling was not appropriate, there is a way for it to file an appeal. We hope that every operator thinks that the government handles each case fairly and reasonably,” he added.
However, Yu and another NCC commissioner, Peng Shin-yi (彭心儀), filed dissenting opinions over the commission’s ruling against Tatung Infocomm, whereas NCC chairperson Howard Shyr (石世豪) filed concurring opinions in the Tatung Infocomm case.
The commission ruled by reaching a consensus.
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