Thursday, March 3, 2011

Legal wrangling looms over Cable TV changes

PHILIPSBURG--Pending changes to the channel line-up of St. Maarten Cable TV are starting to cause a stir amongst Cable TV subscribers. They are questioning how Cable TV can simply replace channels from one day to the next without properly informing its customers.

From all indications, the subsribers have the tacit support of the regulatory body, the Bureau Telecom, which has made its position clear on the issue: the consumer has the right to be considered and consulted.

The transfer of control of St. Maarten-based cable TV operator St. Maarten Cable TV to Caribbean Asset Holdings (CAH), a subsidiary of National Rural Utilities Cooperative Finance Corporation (CFC), is scheduled to occur today, March 1.

As part of that transfer, changes to the channel line-up will also be made for St. Maarten Cable TV to be in compliance with regional programming requirements. As a result, new channels will be introduced to St. Maarten Cable's audience, including MSNBC, The History Channel, BBC America, Speed and Azteca International. The channels will replace popular channels such as ESPN, USA, Univision, HBO and others in the basic package of St. Maarten Cable TV.

According to Cable TV management, the underlying reasons that drove the changes were adhering to intellectual property rights and avoiding copyright infringements and the possible blacklisting of St. Maarten by major US programmers. Only US territories were allowed to carry the channels that will be replaced on Cable TV. Severe lawsuits have been filed against territories in the Caribbean that have been offering channels to consumers illegally.

While Cable TV's previous corporate ownership paid a provider for the channels, the legal right to carry the channels was never obtained. Caribbean Asset Holdings (CAH) has opted not to risk incurring legal ramifications and St. Maarten Cable TV has to follow suit and replace the channels for which no legal rights had been secured.

St. Maarten, like the rest of the English-speaking Caribbean, primarily receives Latin American feeds, simply because the English-speaking islands are grouped under "Latin America." Considering that the Spanish-speaking Caribbean population greatly outnumbers the English-speaking inhabitants, no change should be expected in the "grouping" policies.

The Daily Herald fielded a number of phone calls on Monday morning from Cable TV subscribers, all of whom either alluded to or questioned how Cable TV could let them pay for channels that it had been offering illegally for decades. "We didn't know that when we signed our agreement," one caller said, to explain the situation.

Director of Bureau Telecom Peggy Ann Brandon said the fact that Cable TV had chosen one-sidedly to change its channel line-up without consulting consumers was bothersome. "What we think Cable TV should do is respect its agreement with the consumer. Go back to the consumer and say, 'Listen, I can no longer be able to offer this package against this price, but I can offer you this.' You cannot change and expect people to pay the regular fee for a package that will give them less satisfaction than the previous package," Brandon said.

She said, under the request to the Minister of Telecommunication Franklin Meyers for the transfer of control of Cable TV to its new corporate owners, permission for the transfer could be granted "provided that you prove that your consumer is in agreement with what you are going to offer them."

"If anyone files a case against us, we will say we gave you a concession to render legitimate services. We don't have to check which contracts you have; you had to provide us with those contracts; you didn't live up to your side of the bargain to offer legitimate service. You will never be able to get everyone to agree, but at least show a cross-section," Brandon said. "Based on the responses, you can offer several packages to accommodate the public and to give people a choice," she added.

Cable TV's way of informing its consumers is through newspaper ads and notices on Cable TV Channel 15. There is no survey or questionnaire in place. Persons can call Cable TV's office, provide their account number and file a complaint. However, even if the majority of complaints are against the channel changes, those changes will still probably be implemented.

This is due in large part to Cable TV's concession, which states that the company must have agreements in place with all channel-programming that it offers, which it now has. Should government opt to deny the transfer, a lawsuit would in all likelihood follow. Additionally, Cable TV and its corporate owner would argue, "What are government and the regulator doing against those companies that are still offering illegal cable and satellite services?"

St. Maarten Cable TV is set to join its sister companies in the US Virgin Islands, which were transferred on October 6, 2010. CAH acquired the Innovative Telecommunications operating divisions and subsidiaries in the US Virgin Islands on October 6, 2010. These include Innovative Telephone, Innovative Cable TV St. Thomas-St. John, Innovative Cable TV St. Croix, Innovative Wireless, Innovative Long Distance and Innovative PowerNet.

Major initiatives planned after the transfer of control include providing digital cable service and revamping the existing programming line-up. Digital service will provide improved picture quality, a digital interactive guide, better sound and an overall, enhanced viewing experience.

These channels have been requested by subscribers and will further diversify the line-up. Customers of "� La Carte premium services" will be able to enjoy an expanded HBO Max Pak featuring HBO Caribbean, HBO Family, HBO Plus, Max HD and Max Prime.

Source: http://www.thedailyherald.com/islands/1-islands-news/14259-legal-wrangling-looms-over-cable-tv-changes-.html

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