TV5 Network Inc. asked the National Telecommunications Commission to recall the permit of Sky Cable Corp. to operate satellite television services in the country.
TV5 filed a motion for reconsideration with the NTC to recall the satellite TV permit of Sky Cable, saying Sky Cable “has neither right nor legal basis, much less capacity to file the instant application for a certificate of public convenience pertaining to a wireless service.”
TV5 said NTC erred in granting Sky Cable a provisional authority for a service, which the latter could not legally perform in the first place.
“TV5 begs this honorable commission to reconsider and revisit, if not give a hard second look at the evidence on record herein. Otherwise, this honorable commission may inadvertently allow the perpetration of a grave injustice and travesty of the law,” the broadcast firm, controlled by Philippine Long Distance Telephone Co., said.
NTC in December last year granted Sky Cable, a unit of ABS-CBN Corp., a provisional authority to install, operate and maintain a direct broadcast satellite in 251 cities and municipalities for 18 months.
DBS, also known as ‘direct-to-home’ transmits signals to subscribers using satellite technology.
Sky Cable’s new satellite service would compete with Cignal TV, Dream Satellite TV and GSat, which all offer DTH services nationwide.
Sky Cable said estimated the cost of starting the project at P250 million, with an initial capital outlay of P122 million to cover the purchase of various equipment, with the remaining P130 million serving as working capital.
The company projected to acquire 49,500 subscribers in its first year of operation and increase it to 864,600 in 10 years.
Sky Cable proposed a one-time installation fee of P3,990 and a charge P390 for DTH prepaid card for 30 days.
Sky Cable said it anticipated to post a gross revenue of P69.42 million in the first year operation, with a net loss of P290.22 million. It said by the tenth year of operation, it expected to post a profit of P467 million out of P2.97 billion in gross revenues.
SkyCable said the financial projection would be “attainable” as there were currently 2.53 million subscribers for cable and DTH services in the country, or a mere 17 percent of the 14.17 million TV households.
This means that 83 percent of the TV households or 11.76 million households remain to be connected to cable TV or DTH.