Cable firms reject ‘forced access’ system

Date: 25/11/1999

By Peter Chapman

EUROPEAN cable television companies are calling on telecoms regulators to stop member states from forcing them to carry selected television channels and services at loss-making prices.

Henk de Goede, president of the European Cable Communications Association (ECCA), says the industry is investing billions of euro a year into its networks to enable them to carry digital television, telecoms and multimedia services.

But those networks are being clogged up and companies are failing to secure an adequate return on their investments because of existing rules which permit EU governments to force large cable companies to carry certain basic services - including pay-TV channels such as Canal Plus - for below-cost fees. They can also be coerced into renting their network to rivals offering services such as the Internet and digital TV.

The industry is concerned that proposals outlined in a draft paper on telecoms policy drawn up by Enterprise Commissioner Erkki Liikanen would do little to remedy this problem, because they state that such 'open-access' obligations should still apply to firms enjoying "significant market power" - typically upwards of a 25% share of the market.

De Goede argues that this would have a damaging impact on most cable firms because they have to reach very large numbers of customers in any one member state to cover their huge costs. Moreover, he said, the sector faces tough competition from EU telecoms operators, satellite and terrestrial television companies despite high levels of cable penetration.

Cable firms, including pan-European operators UPC and Telewest, will put their case for a rethink at a high-level conference next week on the eve of Tuesday's (30 November) meeting of member states' telecoms ministers.

European cable television companies are calling on telecoms regulators to stop Member States from forcing them to carry selected television channels and services at loss-making prices.