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Viewing cable 06SINGAPORE946, MEDIA CONTENT EXCLUSIVITY: MINISTRY RULES AGAINST

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Reference ID Created Released Classification Origin
06SINGAPORE946 2006-03-24 06:12 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Singapore
VZCZCXYZ0001
RR RUEHWEB

DE RUEHGP #0946 0830612
ZNR UUUUU ZZH
R 240612Z MAR 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 9301
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SINGAPORE 000946 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR FOR AUSTR BWEISEL, EBRYAN, AND JMCHALE 
 
E.O. 12958: N/A 
TAGS: ECPS EIND EINV ETRD SN
SUBJECT: MEDIA CONTENT EXCLUSIVITY: MINISTRY RULES AGAINST 
REGULATOR 
 
 
1.  (U) Singapore officials informed us on March 23 that they had 
decided to set aside a proposed ex-ante amendment of exclusive 
carriage agreements between media content/channel providers and 
Singapore's sole Pay-TV operator, SCV StarHub Cable Vision.  This 
represents a modest, and perhaps temporary, victory for U.S. 
content providers. 
 
2.  (U) The Media Development Authority (MDA), a statutory board 
under Ministry of Information, Communication, and the Arts 
(MICA), amended StarHub's licenses in late 2005, stipulating that 
contracting parties were no longer permitted to include exclusive 
terms without prior MDA approval; StarHub appealed the decision 
to MICA Minister Lee Boon Yang, who upheld it earlier this week. 
 
3.  (SBU) According to industry sources, MICA overruled MDA on 
procedural grounds.  Despite initial optimism, they remain 
concerned that MICA has left the door open for MDA to try and 
regulate exclusivity in some other way.  In his decision, the 
Minister reportedly noted that exclusivity restrictions in Pay-TV 
operator licenses could be introduced "if MDA follows correct 
processes." 
 
4.  (SBU) MICA apparently took issue with MDA's attempt to apply 
one set of regulations to different licenses that in fact 
required different procedures.  MDA is permitted to amend a Pay- 
TV operator's license as it deems appropriate when it is up for 
renewal; different, more complicated procedures are required, 
however, if MDA intends to amend an existing license. 
Specifically, StarHub's analog television license was about to 
expire when MDA issued its amended renewal late last year 
(permissible under existing regulations); the problem arose, 
however, when MDA also introduced exclusivity restrictions into 
StarHub's digital television license, which does not expire until 
2013. 
 
5.  (SBU) Industry sources noted that, in assisting MICA with its 
decision, the Attorney General's Chamber was "fairly critical" of 
MDA, reportedly speculating that StarHub would have succeeded 
even in a judicial review (something the GOS is believed to 
strongly discourage) had it pursued this in lieu of an direct 
appeal to the MICA minister.  Sources have told us that Minister 
Lee was especially unhappy with the attention this issue had 
received from the USG, content providers such as Discovery, 
Disney, STAR and TimeWarner, and the U.S.-ASEAN Business Council, 
especially our criticism concerning the lack of transparency in 
this process.  MDA solicited industry comment in June 2003, but 
has ignored subsequent industry appeals for further consultation, 
except on a private, unsolicited basis. 
 
6.  (U) Few competitive markets -- Hong Kong, Australia, and the 
United States among them -- impose ex-ante regulations.  Business 
representatives and the USG have argued that MDA's decision 
constituted unnecessary regulatory intervention in an industry 
which relies on exclusivity arrangements to enhance the ability 
of content creators and distributors to invest in new and 
innovative programming. 
 
Comment 
------- 
 
7.  (SBU) USTR has included the issue of Pay-TV transparency in 
rule-making on its agenda for the upcoming second annual review 
of our bilateral Free Trade Agreement to be convened in 
Washington on March 30.  While we are encouraged by MICA's 
decision, we also recommend that USTR continue to press Singapore 
on the issue of transparency in the regulatory and rule making 
process, something that that we have raised with Singapore, not 
just as it pertains to media, but also to other sectors such as 
telecommunications. 
 
HERBOLD