Dutch cable firms ordered to open networks to competition

25 Oct 2006
00:00

(Associated Press via NewsEdge) The Dutch parliament is expected to order cable companies to open their networks to competition, but it is not clear whether the country's government can draft the idea into law.

Cable television is dominant in the densely populated Netherlands, with more than 90% of households having cable TV subscriptions.

The country's two largest political parties, the ruling conservative Christian Democrats and the left opposition Labor, have joined to support the resolution, giving it a large majority in parliament.

'If you open cable up to competition, then the prices will fall and service will be better,' Labor lawmaker Martijn van Dam told state broadcaster NOS before the vote.

The government has advised against adopting the resolution, saying it was too sweeping and would violate European rules.

The resolution essentially orders all cable companies to legally split their broadcasting arms from their network arms, and allow other broadcasters to use their networks on equal terms, Economic Affairs Ministry spokesman Ruud Stevens said.

The way the resolution is worded, even small cable companies will have to open their networks to competition - a result he called 'financially undesirable and practically impossible.'

The Dutch Consumer Protection Agency claimed the presumptive vote as a victory that comes after years of lobbying.

'We have had endless problems with cable companies' quality of service, high prices, and poorly functioning help desks. They are arrogant monopolists,' said spokesman Ewald van Kouwen. 'They need to feel the hot breath of competition on their necks.'

The Dutch cable industry association Vecai said it would appeal to European courts if the new resolution is drafted into law.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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