*Extracted from the 3rd Sept STi*
StarHub's offer is 'three years too late'
But SingTel doesn't rule out sharing the hosting of pay-TV content
By Chua Hian Hou
TOO little, too late: This just about sums up SingTel's reaction to StarHub's unsolicited offer to host its pay-TV content.
That said, SingTel is not throwing out the baby with the bath water either: it has said it will consider the proposal and respond if it is formally tabled.
StarHub's proposals have thus far been made only through the media.
SingTel Singapore chief executive Allen Lew, making his most direct remarks on the hot-button issue at a media briefing yesterday, said StarHub's offer comes 'three years too late'.
It was no secret SingTel had set its sights on the pay-TV market years ago, he said. But StarHub, the only pay-TV provider here for 12 years until SingTel launched mio TV in 2007, had made no proposal about sharing the network up until it lost pay-TV's crown jewel, the Barclays Premier League, to SingTel.
Mr Lew declined to say if or what discussions transpired back then. SingTel thus went ahead to build its mio TV infrastructure, he said, 'a new state-of-the-art pay-TV network with unique features like true video-on-demand'.
mio TV is now all set to take the 126,000 subscribers it has so far garnered on board Singapore's billion-dollar national broadband network, with which it has been designed to work seamlessly.
The Straits Times understands that StarHub's older, non high-definition ready set-top boxes may need replacing if viewers are to make the most of the new fibre-optic network's capabilities.
StarHub now has 535,000 subscribers.
Mr Lew, noting that the Government has commissioned a study on the issue, said it would be prudent to await the outcome of that, as it did not want to make a move contravening what the Media Development Authority (MDA) would propose.
Timing aside, Mr Lew questionedthe sincerity of StarHub's offer: 'Let me state upfront that I find it very unusual that a competitor will make a commercial proposal to us through the press. If someone is serious about doing something, you would approach the other party first before blaring it out to the whole world.'
StarHub chief executive Terry Clontz had conveyed his offer to host SingTel's content on its network in an e-mail to The Straits Times two weeks ago. He said then that it was in response to customers' feedback that it would be a hassle to install a set-top box for exclusive StarHub programmes and another for SingTel's.
StarHub followed up on this offer - using The Business Times next - with a proposal to let SingTel carry StarHub's exclusive content like HBO on its network.
Mr Lew said yesterday that he does not rule out cooperation altogether: 'When they send that proposal, then I can give you a more specific comment.'
A StarHub spokesman said yesterday evening that a formal proposal had just been sent to SingTel.
The Government has declined comment, but has reiterated that it is in talks with both sides. MDA head of competition and market access Eileen Ang said: 'Our goal remains to find an effective solution that works best in the Singapore context and that best addresses consumers' concerns.'
Retiree Philip Poh, 56, who wrote to The Straits Times Forum on this issue, just wants it sorted out - and soon.
'I just want to watch football, and I don't mind paying either party. In fact, if SingTel bids for and wins the World Cup rights next May, it had better be able to hook up my home by then,' he said.
He had inquired about getting mio TV, but was told it was now unavailable in the eastern part of the island, where he lives.
Yesterday, SingTel said its pay-TV service would be available to all Singapore homes by July.
chuahh@sph.com.sg
That's what you get for being arrogant and complacent.... Take a look at what Starhub had done to their subscribers over the past 12yrs :
- enforce upon us the mandatory 'Basic Tier' before other packages can be added on even though few are interested in it. Most of the subscribers are keen only in the Sports (specifically EPL) Package.
- raise prices of the Sports Package as and when they like
- pushing the exhorbitant bid price of the EPL content to subscribers, giving those under contract no chance of cancellation
I'm really glad that Singtel won the rights for the next 3years, waking up Starhub's idea!
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