Opta sets wholesale cable TV prices, UPC protests

News Video Netherlands 26 NOV 2009
Opta sets wholesale cable TV prices, UPC protests
The Dutch regulator Opta has published the proposed wholesale prices for cable operators UPC and Ziggo to resell their analogue TV services to alternative operators. The prices are set at EUR 8.84 for UPC and EUR 8.46 for Ziggo. The variation is due to differences in the operators' sales prices and costs. New operators will be able to set their own retail prices and also offer their own digital and multi-play packages. Among the service providers who have expressed interest in offering their own cable TV services are Tele2, Online Breedband, Scarlet, YouCa, Your.tv and CanalDigitaal. The proposed wholesale prices were developed in an industry group formed by the regulator with UPC, Ziggo and other service providers interested in the cable services. However the prices are well below the proposals from Ziggo and UPC made in August, of respectively EUR 11.05 and around EUR 12. Their current retail prices are at EUR 16.25 per month for Ziggo (EUR 16.45 from 1 January) and EUR 16.70 at UPC (to become EUR 16.90). The price decision is open for conslutation until 7 January and is also subject to comment by the European Commission. Opta already published a separate proposal on the technical implementation of wholesale cable access. Assuming final decisions are reached, the new resale service could start in March next year for stand-alone TV services, while from the summer, cable customers taking other services from UPC or Ziggo should be able to get TV from a different service provider. UPC responded immediately to the statement saying it will challenge the proposed pricing. The company said the price is too low and based on a calculation method that has changed in recent months. Opta had threatened UPC with a fine after the cable company withheld information requested by the regulator while it was calculating the wholesale prices. After a warning on 6 November, the company supplied the requested info.

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