Dated: 17 February 2015
Background
1. On 24 April 2013, MDA determined that the package of rights obtained by SingTel relating to the BPL Content constitutes Qualified Content under the Code. On 24 July 2013, MDA exempted SingNet from cross-carrying the BPL Bundles (please see Annex A of the Appendix (793.04KB)), such that SingNet would only cross-carry the Standalone BPL on every RQL’s Relevant Platform(s) (the “2013 Exemption”). On 3 November 2014, MDA notified SingNet of its intent to review the 2013 Exemption pursuant to paragraph 11(d) of the 2013 Exemption. The review is intended to ensure that the 2013 Exemption had benefitted, and would continue to benefit, the public and the media industry.
2. Separately, on 17 November 2014, SingNet submitted its request for an exemption of its obligation under Paragraph 2.7.1(a) of the Code from cross-carrying certain revised channel packages containing the BPL Content and Other Content (referred collectively as the “Revised BPL Bundles”), such that SingNet would only cross-carry the Standalone BPL on every RQL’s Relevant Platform(s) (the “2014 Exemption Application”).
3. On 16 February 2015, MDA issued its decision (the “2015 Decision”) in relation to the 2014 Exemption to SingNet (please refer to the Appendix (793.04KB)). This Industry Circular sets out MDA’s considerations to the Decision.
MDA’s Considerations
Review of the 2013 Exemption
4. Having carefully reviewed the 2013 Exemption, MDA is of the view that the considerations detailed in paragraphs 7 and 8 of the 2013 Exemption would continue to apply, and that public interest was, and would continue to be, served by exempting SingNet from making available the BPL Bundles for transmission and reception to consumer and business customers on every RQL’s Relevant Platform(s) and to offer only the Standalone BPL Content for cross-carriage.
Assessment of the 2014 Exemption Application
5. In respect of SingNet’s representation that the 2014 Exemption Application will be in the public interest, MDA considered that:
a. The availability of the Revised BPL Bundles, in addition to the Standalone BPL, would allow SingNet to reap economies of scale, resulting in lower prices for all subscribers regardless of the platform they are accessing the BPL Content;
b. Cross-carrying a high number of duplicative channels in the Revised BPL Bundles and StarHub Cable Vision Ltd’s (“SCV”) content offerings is likely to result in consumer confusion and dissatisfaction; and
c. It would be in consumers’ interest to have the option to purchase the Standalone BPL on either the SingNet platform or the RQL’s Relevant Platform(s).
6. MDA also considered that SingNet was not discriminating in favour of Subscribers viewing BPL Content on the SingNet platform versus the RQL’s Relevant Platform(s) in that:
a. The Standalone BPL pricing was not discriminatory to subscribers on RQL’s Relevant Platform(s), in that the revenue from the BPL Content would not be used to subsidise the Other Content in the Revised BPL Bundles, as the direct cost of providing the BPL Content to BPL subscribers could not be fully recovered from the revenue; and
b. The cost savings from the economies of scale due to the Revised BPL Bundles would be applied to all BPL subscribers, regardless of the platform of access, resulting in a lower subscription price for the Standalone BPL for all consumers, as compared to a higher subscription price for the Standalone Pack should the exemption not be granted.
MDA’s Decision
Review of the 2013 Exemption
7. MDA is of the view that the 2013 Exemption has benefitted and will continue to benefit the public and the media industry. MDA hereby maintains its decision to exempt SingNet from making available the channel packages listed in Annex A of the Appendix (793.04KB) for transmission and reception to consumer and business customers on every RQL’s Relevant Platform(s) under Paragraph 2.7.4(a)(i) of the Code (read with Paragraph 1.8.1 of the Code).
8. For the avoidance of doubt, MDA’s Further Decisions and the terms and conditions detailed in paragraphs 11, 12 and 13 of the 2013 Exemption shall continue to hold.
Assessment of the 2014 Exemption Application
9. MDA is also satisfied that the 2014 Exemption Application will be in the public interest for the reasons mentioned in paragraphs 5 and 6 above. Therefore, MDA exempts SingNet from making available the Revised BPL Bundles for transmission and reception to consumer and business customers on every RQL’s Relevant Platform(s) under Paragraph 2.7.4(a)(i) of the Code (read with Paragraph 1.8.1 of the Code) (the “2014 Exemption”), subject to the following conditions:
a. SingNet must ensure that the viewing experience for BPL subscribers over the RQL platform(s) is non-discriminatory and similar to that over the SingNet platform;
b. Apart from Basic Functions, as agreed by SingNet, SingNet shall include any enhanced interactive features in relation to the BPL Content to consumer customers over each RQL’s Relevant Platform(s);
c. SingNet is also required to seek MDA’s consent in the event it wishes to make any changes to the proposed packages and terms in Annex B of the Appendix (793.04KB). In this regard, SingNet is required to notify subscribers one (1) month prior to the changes to the packages, and notify MDA seven (7) days prior to notifying the subscribers; and
d. MDA reserves the right to review the 2014 Exemption annually, including the right to vary and/or withdraw either Exemption, as well as to vary and/or impose additional conditions in relation to either Exemption.
10. For the avoidance of doubt, MDA’s Further Decisions as set out in the information circular dated 4 April 2014, shall also apply to (i) the addition of new channels into the Revised Gold Packs and (ii) the offer of free previews which do not contain the BPL Content to subscribers of the Revised Gold Packs on the mio TV platform only.
11. The Revised BPL Bundles that SingNet is exempted from the cross-carriage obligation in the 2014 Exemption shall be announced by SingNet.
12. Nothing in MDA’s 2015 Decision shall preclude MDA from withdrawing or varying the 2014 Exemption granted, if it has reasonable grounds for:
a. believing that there has been a material change of circumstances; or
b. suspecting that the information on which the 2014 Exemption is based was incomplete, false or misleading in a material particular.
13. Any queries on this 2015 Decision may be addressed to:
The Media Development Authority of Singapore
Attn: Ms Lee Ee Jia, Director (Policy)
Email: Lee_Ee_Jia@imda.gov.sg
.webp)