What is going on?

Something tells me there is more to this than meets the eye.

The newly issued rules of the National Telecommunications Commission (NTC) governing cable television and direct-to-home satellite TV operators were supposed to protect local CATV and DTH operators from the whims and caprices of foreign program/content providers.

The Department of Transportation and Communications directed the NTC to come up with the rules in light of last year’s incident between Destiny Cable and Star Group which saw the latter pulling out its popular cable TV programs (ESPN, Star Sports, Star Movies, Star World) from Destiny citing no reason whatsoever except that it was purely a business decision by Star management.

Destiny and the NTC suspected that SkyCable and Home Cable, which had merged under Home Cable, entered into an exclusive agreement with Star.

And so the NTC issued recently its new rules, which it brandishes as a circular that will prohibit exclusive agreements between cable TV/DTH operators and foreign programmers. But a careful study of the circular will show that the new rules made matters even worse. It now legalizes exclusive arrangements provided that the local operator can show that the contract is not against public interest.

Did the NTC use Destiny’s case as an excuse to legitimize exclusive contracts? Why is it that the new rules seem to be tailor-fit to the needs of foreign content providers and to those of Sky and Home? In fact the new rules included a rider‚ when it provided that before cable TV/DTH operator can air programs such as those of ABS-CBN, GMA 7, Studio 23, RPN 9, IBC 13, and ABC-5, they need to get approval from the latter. Where does this leave the must-carry rule which requires local cable operators to carry these free-to-air channels."

The new rules have no basis in law whatsoever. They are even contrary to the spirit and intention of the DOTC’s directive to protect the local cable TV industry, which by the way does not only include Sky, Home, and Destiny but hundreds of others, including small and medium operators in the provinces who do not have the means to enter into exclusive arrangements‚ with foreign program providers.

Rep. Jerome Paras of the transportation and communications committee of the House of Representatives has promised to look deeply into the matter. Small and medium CATV operators under the umbrella of FICAP have likewise threatened to take the matter to court unless the NTC resolves the issue fast.

Hidden Agenda can be reached at [email protected]