Cable Merger Could Lead To Open Networks

Open access to cable networks could be enforced if the planned merger between cable companies NTL and CWC is allowed to go ahead. As the Competition Commission began its investigation into the planned merger yesterday the issue of access was the first to be raised by a panel of media commentators invited to question the proposed deal.

NTL made a bid for CWC in July last year (see NTL Enters Exclusive Negotiations With Cable & Wireless) which was referred to the Competition Commission by trade and industry secretary Stephen Byers in November (see Cable & Wireless Communications “Disappointed” By Stephen Byers Move). The issue of open access was one of the first to be raised by the enquiry which is expected to publish its findings in the next few days.

The issue of open access to cable networks is one of control. At present cable operators have control over both the cable infrastructure and the provision of programme services. Satellite broadcaster BSkyB, on the other hand, is required to offer its platform to third party content providers due to its dominant position in the market. Thus it was recently obliged to share Sky Sports 2 with ONdigital (see ITC Ruling Forces BSkyB To Share Sky Sports 2), while ONdigital, as a new entrant in the TV world, is not obliged to share its services or rights with BSkyB (see BSkyB Threatens To Withhold Ryder Cup Rights From ONdigital).

If open access were enforced on cable companies they too would have to relinquish control over the platform and a separation between the method of delivery and the content would occur. Content providers from all platforms would be allowed to retail their services directly to cable subscribers.

BSkyB initially raised the issue after increased concern over the burgeoning power of cable. If the merger goes ahead the satellite broadcaster believes that the merged group will have as much control as it does and should therefore be liable to the same rules.

The Commission has also begun investigating the acquisition of a 23% stake in BSkyB by French giant Vivendi, which is to continue over the coming weeks.

Competition Commission: 020 7271 0100