Identifier
Created
Classification
Origin
07SINGAPORE654
2007-04-02 09:09:00
UNCLASSIFIED
Embassy Singapore
Cable title:  

SINGAPORE UPDATING MEDIA MARKET CONDUCT CODE

Tags:  ECPS EINT ECON ETRD EINV SN 
pdf how-to read a cable
VZCZCXYZ0003
RR RUEHWEB

DE RUEHGP #0654/01 0920909
ZNR UUUUU ZZH
R 020909Z APR 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 2784
INFO RUEAWJA/DEPT OF JUSTICE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SINGAPORE 000654 

SIPDIS

STATE FOR AMBASSADOR GROSS
STATE PASS USTR FOR DAUSTR JJENSEN
JUSTICE FOR SCHEMTOB

SIPDIS

E.O. 12958: N/A
TAGS: ECPS EINT ECON ETRD EINV SN
SUBJECT: SINGAPORE UPDATING MEDIA MARKET CONDUCT CODE

UNCLAS SINGAPORE 000654

SIPDIS

STATE FOR AMBASSADOR GROSS
STATE PASS USTR FOR DAUSTR JJENSEN
JUSTICE FOR SCHEMTOB

SIPDIS

E.O. 12958: N/A
TAGS: ECPS EINT ECON ETRD EINV SN
SUBJECT: SINGAPORE UPDATING MEDIA MARKET CONDUCT CODE


1. Singapore's Media Development Authority (MDA) plans to
extend its regulatory reach beyond traditional broadcasting
and print media to encompass new and emerging technologies
that are redefining the wider info-communications sector.
The proposed changes are part of MDA's first triennial
review of the Code of Practice for Market Conduct in the
Provision of Mass Media Services, which MDA began
implementing in 2003 in an effort to liberalize the print
and free-to-air broadcast market. MDA is seeking public
comments on draft revisions to the code. Under
consideration are amendments to address the growing
convergence of media and telecommunications in applications
such as Internet protocol television (IPTV) and to
encourage more competition.


2. Among its new provisions, the code would expand the
scope of MDA's regulation to cover the entire media
industry, including broadcasting, film, print, and other
sectors as determined by the Ministry of Information,
Communications, and the Arts (MICA). The existing code
applies to only four distinct categories: Free-to-Air TV,
Pay-TV, radio, and newspaper publishing services.


3. Competition-related enhancements include prohibitions
against media service providers "unreasonably" using an
affiliate's relative market power in a media or non-media
market to engage in practices such as predatory pricing.
These provisions largely mirror those found in Singapore's
2005 Competition Act, which does not cover sectors like
media where separate (and sometimes less rigorous)
competition regulation already exists. Some industry
representatives have expressed concerns that the expanded
code will result in confusing, cross-sectoral overlaps with
areas currently covered by the Competition Act or by
another sector's code. One law firm that advises the GOS
on implementation of the Competition Act has downplayed
this potential problem, arguing that the Competition Act
only applies to areas not otherwise covered by specific,
standalone competition regulation.


4. The revised code would also use a market-based rather
than an entities-based approach to designate dominant and
non-dominant media service providers. MDA proposes a
definition similar the Competition Act's that uses 60
percent of the respective market share as the threshold for
dominance. Dominance could be established below this level
if MDA determines that other relevant media market
participants occupy a considerably weaker position. Among
their obligations, dominant firms would be required to
provide advertising capacity to other mass media service
companies based on non-discriminatory prices, terms, and
conditions.


5. MDA is seeking public comments on the proposed
revisions through May 7, 2007; it expects to begin
implementation before the end of the year. Relevant
documents may be viewed on MDA's website at www.mda.gov.sg
under "Policies and Regulations." Comments should be
submitted by post or email to:

Ms. Ling Pek Ling
Director (Media Policy)
Media Development Authority
140 Hill Street
#04-01 MICA Building
Singapore 179369
Fax: 65-6336 5560
Email: MDA_ROMC_Comments@mda.gov.sg

Comment
--------------


6. Singapore began implementing the Competition Act in
2005 as part of its obligations under our bilateral FTA.
Although we agreed to initial carve-outs for sectors such
as telecommunications and energy, in addition to media,
Singapore has committed to eventually extending the Act to
all parts of its economy. Singapore's efforts to update
the media industry's competition code and to align its
provisions more closely with those in the Competition Act
may constitute a step in the right direction. However, we
remain concerned that multiple regulators may issue
conflicting decisions that would affect firms operating in
different sectors (e.g., media and telecommunications). We
will monitor how well the GOS handles this challenge and
continue to encourage it to adopt a single, uniform
competition code sooner rather than later.
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