Solon warns vs cable TV monopoly

Cable TV subscribers would be better served with two major players, instead of just one dominant player ruling over the entire (cable TV) industry, according to Rep. Joseph Santiago (NPC, Catanduanes), former chief of the National Telecommunications Commission.

"We’re not inclined to endorse attempts by Beyond Cable Holdings Inc. to co-opt Destiny Cable Inc. In our opinion, consumers would be better served by a more competitive cable TV industry," Santiago said.

"Combining or merging Destiny with Beyond Cable is definitely anti-competitive," he added.

Beyond Cable groups the Central CATV Inc. (SkyCable), Philippine Home Cable Holdings Inc. (Home Cable) and Pilipino Cable Corp. (Sun Cable). Destiny is the country’s second biggest cable TV service provider after Beyond Cable.

Destiny itself has been resisting pressure for it to join Beyond Cable. Destiny officials earlier blamed Beyond Cable for pressuring foreign program providers to pull out from Destiny.

Hostile pressure from Beyond Cable has compelled Destiny to look for a strategic foreign partner that would help beef up Destiny’s cable and data businesses.

Destiny, which is controlled by Elena Lim through Solid Group Inc., also provides cable Internet and other related services.

"Right now, there are only two key players in cable TV industry – Beyond and Destiny. Once Destiny is co-opted by Beyond, we will be left with only one dominant player, " Santiago said.

He added: "Subscribers will be at the mercy of one dominant player that will be free to impose higher rates."

"We want the cable TV industry liberalized. And liberalization should lead to more players and freer competition, and not bigger combinations," Santiago said.