The Minister’s Decision In Singtel’s Appeal Against MDA’s Decision Dated 10 May 2006 On Exclusive Carriage Agreements
On 24 May 2006 , Singapore Telecommunications Limited (“SingTel”) submitted an appeal to the Minister for Information, Communications and the Arts under Section 27(2) of the Media Development Authority of Singapore Act (“MDA Act”) against the decision dated 10 May 2006 of the Media Development Authority of Singapore (“MDA”) on exclusive carriage agreements.
2. SingTel had requested that the Minister quash MDA’s findings. SingTel suggested that the Government either engage independent expert consultants in competition analysis to conduct objective and detailed economic analysis of exclusive carriage agreements in the Pay-TV market in Singapore, or hold that StarHub Cable Vision (SCV)’s exclusive carriage agreements unreasonably restrict competition under the Code of Practice for Market Conduct in the Provision of Mass Media Services (“the Code”) and require that SCV provide wholesale access to key content currently the subject of exclusivities.
3. Among the issues considered, the Minister notes that MDA's examination of SCV's exclusive carriage contracts over the period in question revealed that there remained ample scope for commercial negotiations. The Minister also notes that the international precedents which SingTel claimed to support its position are distinguishable and inappropriate to apply in the different Singapore context where SCV neither owns nor is affiliated with any providers of key content.
4. Having considered the representations received from SingTel and MDA over the course of the appeal, the Minister agrees that exclusive agreements per se do not substantially foreclose potential entrants’ access to key content for the Pay-TV market in Singapore and finds that SingTel has not provided sufficient evidence to show that exclusive carriage agreements have resulted in substantial foreclosure of Singapore’s Pay-TV market. As such, the Minister’s decision is to uphold MDA’s decision.
MINISTRY OF INFORMATION, COMMUNICATIONS AND THE ARTS
27 JULY 2007
2. SingTel had requested that the Minister quash MDA’s findings. SingTel suggested that the Government either engage independent expert consultants in competition analysis to conduct objective and detailed economic analysis of exclusive carriage agreements in the Pay-TV market in Singapore, or hold that StarHub Cable Vision (SCV)’s exclusive carriage agreements unreasonably restrict competition under the Code of Practice for Market Conduct in the Provision of Mass Media Services (“the Code”) and require that SCV provide wholesale access to key content currently the subject of exclusivities.
3. Among the issues considered, the Minister notes that MDA's examination of SCV's exclusive carriage contracts over the period in question revealed that there remained ample scope for commercial negotiations. The Minister also notes that the international precedents which SingTel claimed to support its position are distinguishable and inappropriate to apply in the different Singapore context where SCV neither owns nor is affiliated with any providers of key content.
4. Having considered the representations received from SingTel and MDA over the course of the appeal, the Minister agrees that exclusive agreements per se do not substantially foreclose potential entrants’ access to key content for the Pay-TV market in Singapore and finds that SingTel has not provided sufficient evidence to show that exclusive carriage agreements have resulted in substantial foreclosure of Singapore’s Pay-TV market. As such, the Minister’s decision is to uphold MDA’s decision.
MINISTRY OF INFORMATION, COMMUNICATIONS AND THE ARTS
27 JULY 2007
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