Melita’s statement was clear confirmation of how it did not want to evaluate the possibility to constructively discuss how it and Go could extend access to premium content to each other and share network infrastructure, so as to ensure a fair level playing field in the market and in the interest of customers, Go said this evening.
But Melita said Go's statement was further proof of its intention to confuse public opinion, derail the Social Affairs Committee and delay the possibility of constructive talks to the detriment of consumers, Melita said.
In a statement, Go invited the public to listen to the Social Affairs Committee sitting of June 22 at http://www.parlament.org.mt/filebank/audio/Social%20Affairs%20Committee%20S-077%2022-06-2010.mp3 .
“Melita’s clear statement that it does not want to include infrastructure sharing goes against the spirit of open discussion as asked by the Social Affairs Committee.
“Moreover, Melita’s assertions confirm Melita’s true intentions which are those of regaining access to premium content, namely English Premier League and Italian Serie A, which it lost following a competitive bidding process in autumn 2009.”
Go accused Melita of being after gaining a competitive advantage by not opening discussions on infrastructure sharing.
Melita, Go said, was historically known for not wanting to share and open up its cable network infrastructure.
“It has challenged regulations and took the authorities to court on the matter so as to preserve its financial interests. It has consistently refused granting any other provider access to its network. On the contrary, Go’s fixed line infrastructure has always been open to third party operators,” it said.
Go said that until it acquired the exclusive broadcasting rights over the English Premier League and Italian Serie A at a significantly high cost, Melita had a monopoly over such content and never shared this content with other local television providers. Such a monopoly was only challenged when Go acquired this content.
Go said it never received any formal proposal on the matter of collaboration in this area and the solution informally communicated by Melita last autumn would have meant that the customer would still require two services from two service providers.
The so-called ‘detailed financial proposal’ to which Melita was referring was only a paragraph in a letter sent by Melita to Go this week indicating an unrealistic value to sports content.
Melita’s offer continued to reinforce the view that Melita was after gaining access to this content on the cheap following its failure to win the bidding process, Go said.
It said that Melita’s statements on providing premium content, including sports, at affordable prices could not be taken seriously given the fact that during its monopoly in terms of football content, it increased its prices for Melita Sports on several occasions.
“Within this context, and in line with Melita’s position to discuss separately and not as part of these discussions the sharing of movies and the facilitating of the process through which customers may switch from one operator to another, one seriously questions Melita’s statement that it has its customers’ interests at heart.
“Go is in favour of fostering competition and long term sustained consumer welfare.”
Go reiterated its position that eventual discussions had to respect the underlying appeal of the Social Affairs Committee that there should be a fair level playing field in the interest of consumers through discussions on content as well as infrastructure access.
It reiterated that it remained available to resume discussions should Melita rethink its position and agreed to discussions the ultimate objective of which were to ensure a fair level playing field in the television market in the interest of consumers.
In a counter statement, Melita denied that it went against the spirit of the committee’s requests.
“On the contrary, it is Go who are persisting in adopting confusion and delaying tactics to force consumers in paying up to €60 per month to view UEFA Champions League, Serie A and Premier League.”
Melita said this was its second attempt to discuss methods of cooperation with Go, the first having taken place even before the last round of bidding for sports rights. It was clear, Melita said, that Go saw corporate gain in denying consumers more accessible sports viewing.
“To insert other matters as part of a discussion on content sharing is purely a deliberate and conscious attempt by Go to delay and confuse for the sake of maintaining the current unfair and detrimental situation for all consumers,” Melita said.
See also:
http://www.timesofmalta.com/articles/view/20100626/local/melita-accuses-go-of-using-delaying-tactics
http://www.timesofmalta.com/articles/view/20100626/local/go-melita-talks-on-access-to-premium-content-sharing-infrastructure-fail