By Lee Min-hyung
The cable TV association called on the government, Thursday, to finalize its decision over the controversial takeover of CJ HelloVision (CJH) by SK Telecom, putting an end to growing market uncertainties in the industry.
“Interested parties are exchanging false and hostile propaganda, while the government has delayed its screening processes over the deal,” the Korea Cable TV Association (KCTA) said in a statement.
Earlier expectations were that the government would make its final decision for the takeover plan, the nation’s first in terms of combining a leading mobile carrier and cable TV operator, no later than April when the 120-day legal deadline for the review fell.
The merger, however, still remains unresolved, with the government delaying the process citing the complexity and sensitivity of the issue.
But the Fair Trade Commission (FTC) stressed that the deadline has not passed, as the four-month deadline excludes a document correction period.
In the statement, the KCTA stressed that the delayed processes would only cause growing rancor from the industry, further intensifying conflicts among concerned parties.
“The cable TV industry faces market uncertainties due to the delayed decision, which could cause a backlash from the broadcasting sector as well,” said the statement.
The cable TV market shows little sign of rebounding, after losing its competitiveness to Internet protocol television (IPTV).
“The government should make enough efforts for the industry to stand competitive on its own,” said the statement. “It is time for the government to make a swift decision through a strict screening process.”
SK Telecom’s major rivals _ KT and LG Uplus _ remained cautious over the statement.
A KT spokesman said, “It is true that the cable industry is declining, but this cannot justify the merger.”
SK Telecom, however, claimed the statement was not aimed at “justifying” the merger, and the company had nothing to do with the statement.
“The merger initiative was announced last year, as this met the needs of both sides,” said an SK Telecom official. “We want to generate next-generation growth engines through the merger and offer quality content for viewers.”
LG Uplus, which also opposes the deal, stressed that the government should come up with specific measures to help cable TV operators stand on their own feet.
A company official said, “The SK-CJ merger, if allowed, may speed up the decline of the cable TV industry, as expectations are that other companies may expand their presence into the industry.”