Charles Teves
Cignal TV’s acquisition of Sky Cable has garnered scrutiny given the possibility of the former’s parent PLDT increasing its broadband market share and the creation of a pay-TV leader.
The proposed deal will also have PLDT taking over SkyCable’s internet business. Its main purpose is reportedly part of the business partnership between Manny Pangilinan and the Lopez family, who is on the verge of merging operations with TV5.
“Market control over the pay-TV sector influences the price not only of TV content delivery but more importantly broadband prices, as these services are typically tied to pay-TV services,” said Terry Ridon in a statement in a response to Digital Pinoys’ petition to the NTC.
Digital Pinoys explained that since Cignal TV has 3.6 million satellite TV subscribers while Sky has 1.4 million subscribers, both will conquer 63 percent of the market.
In its letter to the NTC, the advocacy group said the union is anti-competitive.
“The core public concern in this acquisition is the pricing for broadband services, as both companies are leading broadband providers as well. With online work and schooling still a reality amid the continuing COVID-19 pandemic, the government should step in to ensure that this prospective acquisition will not result in higher prices for internet users,” said Ridon.
Ridon said TV5 and the Kapamilya network should instead work more in delivering content.
“The more imminent concern for both groups is the NTC order requiring media companies to first secure regulatory approval for block-time arrangements. If the NTC finds both media companies in its crosshairs over block-timing, it might be far more difficult to secure approvals for this acquisition,” said Ridon.
After rumors of the partnership circulated, ABS-CBN’s stock soared to a three-week high. It spiked by 627 percent on June 29 and a 250 percent increase in trading volume.
