Foreign entities should not be allowed to control DTH projects

LHC stops DTH bidding by PemraPetitioner says unlike world, broadcasters in Pakistan are kept out of TV distribution projects like DTH

LAHORE: A three-member bench of the Lahore High Court, headed by Honorable Justice Ayesha A Malik and comprising Justice Abid Aziz Sheikh and Justice Shahid Karim, restrained Pemra from opening the DTH license bids and finalising the tender till of judgement by the court in the writ petition No.15317/2016 of Geo TV Network. 

The court has observed that it is of the opinion that since important question of law and valuable rights are involved, the tender cannot be opened tomorrow.   Ms Asma Jahangir pleaded the case for Geo TV and Salman Akram Raja for Pemra.     

Geo TV Network has challenged exclusion of broadcasters from DTH bidding under Rule 13, exemption given to foreign entities against section 25 of Pemra ordinance to control DTH projects and pre-qualification of companies without requisite experience from a previous DTH bidding.  

LHC has reserved the judgement in Geo TV petition after conclusion of arguments.   Broadcasters body PBA already wrote a letter to chairman Pemra in September 2016 to withhold DTH bidding till formal consultation with PBA which was produced before three-member LHC bench hearing the case. 

PBA today issued a public notice in all main newspapers against holding of bidding tomorrow.  PBA public notice said foreign entities should not be allowed to control DTH projects and DTH licenses should only be processed after due consultation with PBA.  

PBA plans to undertake fresh litigation to challenge Pemra DTH policy and discriminatory treatment towards local media. 

Cable operators had shut down their networks since yesterday to protest non-consultation by pemra but restored after negotiations with PBA. Cable operators contend that before DTH rollout, they should be given sufficient time to convert their networks to digital to compete with DTH. 

Cable operators are also approaching different courts of law. 

Pemra miserably failed to roll out DTH services from a previous round of DTH  licence bidding in Oct 2003. Around Rs 20 crore were taken from two successful bidders who are mainstream broadcast groups. Both successful bidders of 2003 bidding were never issued terms and conditions and a license agreement despite written commitment by pemra. An appeal on this matter is still pending in Hon’ble Supreme Court of Pakistan.  

Meanwhile Indian DTH services have been selling illegally in Pakistan since 2005 and have earned billions annually through illegal distribution.  Pemra introduced a draconian restriction in 2009 that barred broadcasters from owning DTH or any TV distribution network.  

Presently this rule is challenged in Geo TV petition in LHC. 

Pemra for unknown reasons continues the policy of keeping broadcasters out of TV distribution projects like DTH. No such restriction exists globally and broadcasters are allowed vertical integration ie owning TV distribution network . Vertical integration has led to brilliant results globally with doubling of TV channels to 42,000 channels during 2007 to 2015. Vertical integration has also resulted in doubling of digital TV subscribers globally to over one billion since 2010.   

But Pemra disallows vertical integration since 2009 which has resulted in stagnant growth of broadcast sector. 

Pemra aim seems to control broadcast sector through different entities and restricting biggest stake holder ie broadcasters.