Watchdog allows TV firms two-year monopoly
THE Competition Authority has cleared the way for TV companies to have a monopoly over individual apartment blocks for up to two years.
The decision will provoke outrage among apartment dwellers whose complaints about not being allowed to switch to a cheaper or better TV provider prompted the watchdog's probe.
Announcing its findings yesterday, the Competition Authority said exclusivity agreements for up to two years were "warranted" because developers had to offer "incentives" so TV companies would pay for the infrastructure.
That assertion was rubbished by the country's two largest pay-TV players last night. Both Sky and UPC said they had "never" entered into exclusivity arrangements and would happily put infrastructure into apartments without any monopoly guarantee. Telecoms company Magnet, which is particularly prominent in the apartment sector, also said it had no exclusivity agreements and didn't see exclusivity as a necessary feature of the market.
Infrastructure
And major developments like Adamstown have successfully managed to sign up several pay-TV providers and get the infrastructure in without giving any one exclusivity.
"It's not good enough from the Competition Authority," consumers' affairs boss Dermot Jewell said last night.
"The reality is there are people out there stuck with a provider they're not happy with and they're being told to just put up with it for two years."
In its report the watchdog acknowledged that exclusivity arrangements were in force in a number of developments, while a number of other developments had "de facto exclusivity" where there was no formal deal but there was only one provider available. Both Magnet and UPC acknowledged they were the only providers in some buildings but stressed that there was no contract in place preventing anyone else from coming in. Even where exclusivity deals were in place, the watchdog said these were "unlikely" to fall foul of competition rules, since developers argued that exclusivity was needed to entice a provider into a new building.
The watchdog did say that the period of exclusivity should only run for long enough for TV providers to make back their costs, generally no more than two years. Where there are more long-term agreements, "competition problems may arise" and residents should contact the Competition Authority to report any concerns.
- Laura Noonan
