SPK- Spark NZ (TELCO)

[bull....]

http://www.nzherald.co.nz/business/n...ectid=11739334

sky merger delayed, interesting this part

In its letter, the commission's competition manager Katie Rusbatch said the regulator was concerned because: The merged business would have "substantial market power by virtue of its portfolio of content, including premium content such as live rugby";

I see in the UK there was similar issues with dominance of sky in premium live sports.

As a result of its recent investigation into the pay-TV market, Ofcom decided that Sky should be required to sell some of its premium sports channels, including Sky Sports 1 and 2, on a wholesale basis at a fair price to enable others, like BT and Virgin, to compete effectively. It is therefore possible now for non-Sky subscription holders to view these premium channels if they subscribe to BT Vision or Virgin Media.
This requirement on Sky was imposed as a result of Sky's "market power” in relation to the supply of premium sports channels

http://www.out-law.com/en/articles/2...mpetition-law/

wonder if comcom has power to enforce, can impose restriction on sky to make them offer fair wholesale arrangements to other telcos for premium sport, would level the playing field more?

also would still allow spark to partner with tvnz for other tv programming? have sky/vodaph vrs spark/tvnz with premium sport available to everyone from every platform at fair price? duopolies seem the norm in NZ don't they lol interesting times for the Telco and media industries

[Major von Tempsky]

I remember mentally noting that the Sky-Vodafone merger would not go ahead because it would be a bad deal for shareholders once the Sky price went down towards $4 a share which has now happened.

Interesting article here which says the merger is now definitely OFF!

http://www.stuff.co.nz/business/opin...-for-rejection

[dobby41]

Interesting article here which says the merger is now definitely OFF!

Seemed to me it said it was very unlikely?

[Major von Tempsky]

Seems to be some determined punters on the NZX today to whom "very unlikely" means it's on!
What do they know that the rest of the market doesn't know?....

[Major von Tempsky]

Belatedly, the punters have started to read :-)

Isn't there a sizeable penalty, millions and millions of dollars, payable by Sky to Vodafone when the merger doesn't go ahead?

Sin in haste, repent at leisure. Might cost a few directors their jobs.

[peat]

Isn't there a sizeable penalty, millions and millions of dollars, payable by Sky to Vodafone when the merger doesn't go ahead?

Hi Major, Can you show us where you got this idea from ? I've had a bit of a look but couldn't find anything to support it.

[Major von Tempsky]

Here's the background http://www.stuff.co.nz/business/indu...tail-on-merger
Quite interesting but somewhat lengthy.
It appears my recall is slightly wrong, it's only if the Sky Directors speak or act against the merger that the penalty is payable.

[peat]

Here's the background http://www.stuff.co.nz/business/indu...tail-on-merger
Quite interesting but somewhat lengthy.
It appears my recall is slightly wrong, it's only if the Sky Directors speak or act against the merger that the penalty is payable.

This is what I have now found

SKY may, in certain circumstances, incur a termination fee of up to $21.5 million.

I'm still looking for the detail of those certain circumstances ;+)

[dobby41]

This is what I have now found

SKY may, in certain circumstances, incur a termination fee of up to $21.5 million.

I'm still looking for the detail of those certain circumstances ;+)

I doubt it would include the regulator not allowing the merger.

[Major von Tempsky]

Sky $4.36 on the NZX at the mo says it ain't gonna happen! :-)