CTi TV Inc’s hopes of regaining its footing in the cable news market were dashed yesterday after the National Communications Commission (NCC) rejected its plan to broadcast news on its variety channel.
The network on Jan. 29 filed an application to change CTi Variety’s business plan after the commission on Nov. 18 last year rejected CTi News’ application to renew its license, which expired in December.
At the same meeting in November, NCC commissioners approved CTi Variety’s license renewal on the condition that 75 percent of its programs must be made in Taiwan.
The network’s proposed business plan changes to the variety channel’s programming include adding one hour of news broadcasts in the morning, at midday and in the evening, as well as a one-hour political talk show.
However, the commission rejected the proposal on the grounds that a variety channel should primarily produce and broadcast variety shows and TV dramas.
“Last year, we approved CTi Variety’s license renewal application on the condition that it raise the percentage of programs made in Taiwan and increase its funding for the production of variety shows and TV dramas. The [variety] channel’s business plan should be different from that of news and entertainment channels,” NCC Deputy Chairman and spokesman Wong Po-tsung (翁柏宗) said.
“The proposed changes in CTi Variety’s business plan are incongruent with the conditions we set for its license renewal,” he said.
Wong added that CTi News’ license renewal application was rejected because its news department did not operate independently, with its largest shareholder — San Want Holding Ltd — constantly meddling in the newsroom.
“Based on the materials we reviewed, we believe that the variety channel’s internal control mechanism would not be able to shield the news team from undue interference from its largest shareholder,” he said.
In other news, the NCC also rejected Da Da Digital’s proposed acquisition of Taiwan Broadband Communications (TBC), saying that its largest shareholder should focus on reducing the debt ratios of five cable systems under TBC before reselling them.
Da Da Digital chairman Dai Yung-hui (戴永輝) in February last year acquired TBC by securing 65 percent of the shares of Asian Pay Television Trust — which owns TBC — from the trust’s only shareholder, Dynami Vision Pte cofounder Lu Fang-ming (呂芳銘).
The transaction was approved by the Fair Trade Commission on Nov. 4 last year and was awaiting final approval by the NCC.
Since Dynami secured ownership of TBC in 2017, the shareholding structure of the multiple-system operator has undergone several changes, the commission said.
Although Dynami promised to reduce debts incurred by five cable systems under TBC when it secured approval for the ownership change in 2017, a comparison of the five cable systems’ debt ratios last year with those published in 2017 shows little improvement, the NCC said, adding that in some cases, the debt ratios spiked rather than dropped.
“The current owner is seeking to transfer ownership [of TBC] before the cable systems have made any financial improvement. This shows that it views the cable systems only as objects for short-term sales and pays no heed to their long-term development. Approving such a transaction would harm the cable service industry,” the commission said.
Lu should aim to lower the cable systems’ debt ratios below 60 percent in three years, Wong said, citing a recent case adjudicated by the commission as a point of reference.
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