Published by Philippine Competition Commission(PCCom) on June 15, 2020.
Requested from PCC by I. Canua at 12:21 AM on
June 15, 2020.
Purpose: Research, analyses
Date of Coverage: 06/15/2020 - 06/15/2020
Tracking no: #PCCom-420041788722
I.CANUA
June 15, 2020, 12:21 a.m.
Good day,
FICTAP said that the services or other paid products such as the TV plus of ABS-CBN is killing the cable industry.
Also, they mention about the multiple channels especially in the KBO channel and it should be open to all digital tv receivers. But other digital tv experts or engineers said that the channels are free to air, but encrypted to the selected devices for the contents to be protected from unauthorized use, and leaves the legacy channels such as ABS-CBN, GMA, TV5 and others open to all devices according to the memo from NTC.
I.CANUA
June 15, 2020, 12:42 a.m.
FICTAP mention that every channel must have a franchise in one frequency, but other digital tv experts are saying that because of the ISDBT in the digital tv system, broadcasting networks can produce their own multiple channels which is called virtual channels or Logical Channel Numbers.
Most of the broadcasting networks such as GMA7, and TV5 are already launch their channels this year such as GMA News TV, Heart of Asia, One Sports and One PH, but it's not encrypted and open to all receivers.
They mention about KBO channel which they specific as a Pay-Per-View channel and illegal because it should not be in free tv, but according to the DOJ secretary, it was allowed for commercial purposes. It was also indicated the commercial purposes in the franchises of the tv networks.
They mention about the TV plus box which the price is P1,499 while the other digital tv boxes are lower than P1,000.
I.CANUA
June 15, 2020, 12:55 a.m.
In the social media, the post shows that digital tv box of GMA Network which is called Affordabox.
Questions :
1. Does the exclusive channels of ABS-CBN TV plus in the selected devices considered as competitive or anti-competitive?
2. Is encryption a competitive or anti-competitive?
3. Is the price for the TV Plus box considered as competitive o anti-competitive?
4. Are the multiple channels of other tv networks competitive or anti-competitive?
5. Are the digital tv boxes of tv networks considered as competitive or anti-competitive?
5. Is the TV plus services kills the cable tv industry?
6. Is FICTAP a competitor of ABS-CBN?
7. Is the digital tv system kills the cable tv industry?
8. Is the KBO channel considered as competitive or anti competitive?
Thank you and keep safe.
I.CANUA
June 15, 2020, 1:28 a.m.
Additional questions :
9. What are the actions of PCC in order to maintain the competition in the digital tv market?
10. Will PCC, NTC and DICT formed a Memorandum of Agreement regarding to the digital tv system in order to maintain the competitive and comply with the existing laws? If yes, how?
F.OFFICER
June 15, 2020, 10:23 a.m.
June 15, 2020
Dear Ishmael Sam,
Thank you for your request dated Jun 15, 2020 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for Competition in the Digital TV market.
We received your request on Jun 15, 2020 and will respond on or before Jul 04, 2020 12:21:26 AM, in accordance with the Executive Order's implementing rules and regulations.
Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhyHwsSB0NvbnRlbnQiElBDQ29tLTQyMDA0MTc4ODcyMgw, for request with ticket number #PCCom-420041788722.
Thank you.
Respectfully,
FOI Receiving Officer
FOI Officer
I.CANUA
July 1, 2020, 11:13 p.m.
Additional questions :
11. NTC issued Alias Cease and Desist Order for the digital TV broadcasting of Channel 43 in multiple channels of ABS-CBN TV plus. In addition, ABS-CBN voluntarily shutdown the digital tv channels outside NCR even though it was not included in the order and the company wants to clarify if other channels are included.
Last June 26, 2020, GMA Network launched it's Digital TV setup box called Affordabox. The service distributes digital set-top boxes with free-to-view digital TV channels included GMA 7, GMA News TV and Heart of Asia, Multimedia Player, Personal Video Recorder, Broadcast Markup Language, Emergency Warning Broadcast system, Functional Auto-on Alert, Digital Display, and Info Display services to select areas in the Philippines.
Some netizens are saying it's a wrong timing for the company to launch their STTB despite the issue of ABS-CBN TV plus during the franchise hearing.
Because of this, GMA Network is the only broadcasting company that can offers digital TV services in their own Setup Television Box.
What will be the effect in the digital TV box market competition?
Does GMA Network's affordabox services become Monopoly in network tv box competition?
Thank you and keep safe.
P.DECISION MAKER
July 4, 2020, 8:59 p.m.
4 July 2020
Mr. Ishmael Sam Canua
Blk 11 Unit 14 18-C Rowhouse Pilot Area,
Commonwealth, Quezon City
Dear Mr. Canua,
This has reference to your request dated 15 June 2020, denominated as a Freedom of Information (“FOI”) Request under Executive Order (E.O.) No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
Your request
In your request, you asked several questions relevant to competition in the digital TV market.
Response to your request
1. Does the exclusive channels of ABS-CBN TV plus in the selected devices considered as competitive or anti-competitive?
2. Is encryption a competitive or anti-competitive?
3. Is the price for the TV Plus box considered as competitive o anti-competitive?
4. Are the multiple channels of other tv networks competitive or anti-competitive?
5. Are the digital tv boxes of tv networks considered as competitive or anti-competitive?
6. Do TV plus services kill the cable tv industry?
Your request for information for numbers 1 to 6 are all DENIED.
The queries propounded do not fall under the purview of a request for “Access to Information” under Executive Order No. 2, s. 2016 or the Freedom of Information policy, but instead requires legal and economic analysis and a determination of law by the Commission.
7. Is FICTAP a competitor of ABS-CBN?
Your request for information is DENIED.
The query propounded do not fall under the purview of a request for “Access to Information” under Executive Order No. 2, s. 2016 or the Freedom of Information policy, but instead requires legal and economic analysis.
8. Is the digital tv system kills the cable tv industry?
9. Is the KBO channel considered as competitive or anti-competitive?
Your request for information is DENIED.
The queries propounded do not fall under the purview of a request for “Access to Information” under Executive Order No. 2, s. 2016 or the Freedom of Information policy, but instead requires legal and economic analysis and a determination of law by the Commission.
10. What are the actions of PCC in order to maintain the competition in the digital tv market?
Your request for information is APPROVED.
Please be informed that under Section 12(k) and (l) of the PCA, PCC is mandated to issue advisory opinions and guidelines for the effective enforcement of the PCA as well as monitor and analyze the practice of competition in markets that affect the Philippine economy, implement and oversee measures to promote transparency and accountability, and ensure that prohibitions and requirements of competition laws are adhered to.
11. Will PCC, NTC and DICT form a Memorandum of Agreement regarding to the digital tv system in order to maintain the competitive and comply with the existing laws? If yes, how?
Your request for information is DENIED.
The requested information is subject to internal deliberations of the Commission and may not be prematurely disclosed.
For further assistance you may review the FAQ section of the eFOI site: https://www.foi.gov.ph/help.
Thank you.
Respectfully,
Faye Condez-de Sagon
FOI Decision Maker
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