Minister 'gets tough' with Sky

Icehouse

What's the betting that if ComReg get their way, Sky will 'Pass on the costs' to Irish subscribers? I say FTA/FTV is the way of the future ;o) ....

Ahern tells Sky not to resist regulation
Friday, March 14 2003
by Matthew Clark from electricnews.net


Minister for Communications Dermot Ahern has issued a threat to satellite TV firm BSkyB, warning it not to resist regulation of its business by the state.
According to a report in the Irish Times on Friday, Ahern said that if Sky defies regulatory efforts by the government, Ireland may use its coming presidency of the European Union to re-examine the EU's Television Without Frontiers directive. The government's proposed regulation of Sky comes under a package of EU electronic communications directives, due to be implemented by the Irish government before 25 July 2003.



Until now, the Television Without Frontiers directive has been the foundation for Sky's claim that it ought to be exempt from Irish regulation. The company argues that since it is regulated by British authorities, it is not necessary for the Irish government to impose its will on the firm as well.



The prospect of regulation for Sky Ireland has been discussed by ComReg and its predecessor the ODTR for over a year and, although it has argued against such regulation, the Rupert Murdoch-controlled firm suggested in its recent financial results that a battle with the government may be looming. In its February results, the firm acknowledged that the government is undertaking a consultation exercise on the implementation of new EU directives. "It is possible, depending on how the directives are implemented, that ComReg will seek to regulate the group's Irish operations," BSkyB said, updating investors on the state of the company's Irish business.



Indeed, the ODTR and ComReg have long sought to bring Sky's business, which includes 272,000 Irish subscribers, within its domain. As far back as February 2002, after a consultation process on the issue, the ODTR said it wanted to bring new communications sectors under its remit, "including some services and networks which are not currently subject to licensing in Ireland, such as satellite television."



For Sky, such regulation would mean that the firm would likely pay fees to ComReg that could amount to 0.5 percent of its Irish revenues. It could also mean price and service quality controls, and it has been suggested that ComReg regulation could help the government grapple other issues with the broadcaster, such as its deal with the FAI over the right to broadcast Irish football matches.



It is expected that rival cable companies, Chorus and NTL Ireland, would welcome the regulation of Sky. Earlier this month, the two companies threatened legal action over the levy of 3.5 percent of revenues they currently pay to ComReg.

carrolls

I'm sure BSkyB are s***ing in their pants.:D
But seriously
I think the majority of EU governments will resist any changes to the EU's Television Without Frontiers directive.

spongebob

Cod on the menu , not sky