Telephone companies defend competition in Pay TV

07/11/2008 23h00

The public hearing of the Committee for Consumer Protection, held on Thursday, November 6, discussed the Bill 29/07, which establishes rules for Pay TV and allows telephone companies to join that market. Entrepreneurs of the telephone and telecommunication industry and deputies believe that the entry of telephone and broadband companies in the distribution of subscription-based TV will enhance service supply to consumers.

Deputy Celso Russomanno (PP-SP) stated that the opening of the sector can improve the quality of service, which is currently very poor. Russomanno noted that the market is controlled by only two companies, Net and Sky.

"Not only the telecommunications market will improve, but also cable television and broadband markets, without any doubt, because the competition among several companies, including some multinationals, will decrease their profitability, to the consumers advantage " he said.

Statistics
The superintendent of the Bureau of Mass Communication of Anatel, Ara Apkar Minassian, stated that the company expects a rise of 18% in Pay-TV subscribers in 2008, over 2007. He said that there are currently 6 million subscribers, 60% of cable TV, 34% of satellite TV and 6% of MMDS (wireless transmission service through microwave).

According to data from Anatel, 75% of Pay-TV subscribers are from classes A and B, 22% from class C, and 3% from classes D and E. Most subscribers (66.3%) are in the Southeastern region.

According to him, the cable-TV network reaches already 14 million homes, but the service has only 3 million subscribers. This idle infrastructure, said the superintendent, increases the cost to operators. According to him, Anatel will take measures to increase the amount of subscriptions to at least7 million households.

Convergence in legislation
Currently, the law ruling about the various telecommunication sectors is segmented according to the used technology. Minassian says that the project promotes a convergence in legislation. He highlighted that the consumer is not worried about the kind of network or technology, but just looks for fast access any where he is. The higher the number of operators, the more competition there will be. "That generates benefits for consumers, especially in terms of service quality and lower prices," he said.

Unanimity
All participants in last Thursday´s public hearing agreed about the convenience of telephone and broadband companies joining the distribution market of subscription-based TV.

The general-coordinator of the Department of Public Purchases and Consumer Protection and Defense of the Ministry of Justice, Paulo Cesar Casagrande, the C.E.O. of the Brazilian Association of Concessionaires of Switched Fixed Telephone Services (Abrafix), Jose Fernandes Pauletti; the Executive-superintendent of the Brazilian Association of Telecommunications (Telebrasil), Cesar Rômulo Silveira Neto; and the President of the National Association of Mobile Carriers (ACEL), Ercio Zilli also took part in the public hearing.

Upcoming hearings
The Committee for Consumer Protection, which recently received the task to discuss that project, will hold three more debates on the next three Thursdays: about packaging, production and programming. This Thursday´s debate was about distribution.

Report - Cristiane Bernardes / Radio Camara
Editing - Wilson Silveira / Rejane Xavier