OPTA will be investigating cable subscription tariffs: Presentation of findings of broadcasting market analysis

The Commission of OPTA, the Independent Post and Telecommunications Authority, will be investigating the prices charged for the standard plans (the most common forms of subscription) of the Netherlands’ five largest cable providers in order to determine whether they bear a reasonable relationship with the costs involved. They are UPC, Essent, Casema, Multikabel and Delta NV, which together provide 92% of Dutch cable connections. In order to determine what expenditure is reasonable, OPTA will conduct an audit at the cable companies. The draft market rulings will first have to be finalised in order to facilitate this. It is therefore impossible at present for OPTA to make any statement about whether the current subscription tariffs are fair or not.

The other, mainly small Dutch cable companies (whose tariffs are lower than those of the big five) will only be assigned the less onerous duty of explaining to consumers how their subscription tariffs are exactly structured). The various ‘obligations’ are measures which OPTA requires the cable companies to adopt with the aim of improving the operation of market forces and protecting end users.

With regard to the radio and television broadcasting market (wholesale and otherwise), OPTA has concluded that various duties will only be imposed on the five largest cable companies, which differs from the current situation in which the other cable companies also have specific obligations. The three largest cable providers, UPC, Essent and Casema, are capable of exercising the most economic power in this market. As a result, they will be assigned a more onerous range of duties than in the case of Multikabel and Delta NV. These measures will enable programme providers to continue broadcasting their programmes via the cable networks.

OPTA has come to these conclusions on the basis of a detailed analysis of the Dutch broadcasting market. The new telecommunications legislation, which came into effect on 19 May 2004, has made it mandatory for OPTA to do this. The draft rulings were presented today. They will now become the focus of extensive national discussions, which will enable anyone to submit their views on these decisions to OPTA. In addition, our fellow regulators in the European Unions will be able to present their opinion and the European Commission will be required to consent to these rulings. OPTA anticipates that these decisions will come into effect in the autumn.