In the year of review, MDA introduced new rules that protected consumers from being locked into excessively long contracts, and allowed for greater clarity on what would constitute fair and reasonable early termination charges.
Effected in March 2012, the new rules limit the maximum lock-in period in the pay-TV sector to two years. For contracts that are longer than three months, the termination charges are to be graduated, at a minimum, on a month-by-month basis.
Pay-TV retailers are also required to explain the terms and conditions of early termination and provide details of the penalties at the point of sale or upon contract renewal.
With the guidelines in place, consumers will less likely be locked into long-term contracts that stifle choice and reduce competition in the increasingly vibrant market.
With the rollout of the Next Generation Nationwide Broadband Network, MDA expects new players to enter the market, creating more opportunities for consumers to switch to pay-TV operators. The new rules will ensure that consumers can better take advantage of the increased market vibrancy.
Pay-TV consumers also enjoyed more convenience and choice through the cross-carriage measure introduced by MDA in March 2010. The UEFA Euro 2012 football matches were the first qualified content to be cross-carried under the measure. StarHub had in October 2011 informed MDA of its exclusive acquisition of the UEFA Euro 2012 broadcast.
In June and July 2012, live UEFA Euro 2012 matches were broadcast on StarHub and SingNet’s mioTV, so subscribers of either pay-TV operator’s service could use their set-top boxes to tune in to the matches.
Licensing conditions were also strengthened in the year of review. Licensees are required to publish prices, contract terms and conditions to better protect consumer interests.