Astro: Price revisions in full compliance with law
by Joe Leong. Posted on July 4, 2011, Monday

KOTA KINABALU: Astro, Malaysia’s premier paid TV operator, maintains that the price revisions it recently introduced have followed due process and are in full compliance of the law and its license conditions.

Information, Communication and Culture Minister Datuk Seri Dr Rais Yatim was reported to have said last weekend that Astro’s rates could only be hiked with the approval of the Malaysian Communications and Multimedia Commission (MCMC).

When asked to comment on this, Astro chief operating officer (COO) Henry Tan who was on a visit here on Saturday, said: “We would like to put on record that we have followed due process and are in full compliance of the law and our license conditions. We have always informed and involved our regulator, the MCMC.”

The Information Minister was also reported to have said that Astro “had violated MCMC’s regulations by issuing notices on its rate hikes to customers without the commission’s clearance.”

Apparently referring to this particular point, Tan added, “We adhere to the process and we have been very diligent in following whatever license conditions we are governed by. I do not believe that there is an approval mechanism with MCMC.”

Tan said his company had informed the MCMC concerning the price revision on May 13.

“As such, we note the minister’s statement with concern and we will seek clarification from the MCMC.”

He told the local media here Saturday evening that the price revision is already in effect, saying that Astro customers had been informed of the move by way of advertisements in most newspapers on June 7.

“You would understand from the business point of view that there are many systems in place. Once we have done such a thing the whole system from logistics, the systems, to IT, to billings is all made into effect.”

The COO of Astro said he wanted to make it very clear that the price revision involved three groups of customers – one that is totally unaffected, another that stands to gain and the third that experiences an increase in price.

Touching on the first group, he said “there are at least 25 per cent of customers” who would not be affected, meaning there is no increase or decrease in price for them.

There is another group of customers, he explained, who would enjoy savings.

“What we have done in this price revision is to take the opportunity to rationalize our packages and our so-called rate card,” he explained.

“In the past, when you buy, you just add on. In the new rate card, the more you buy the more discounts you enjoy. We are trying to give more value back to our customers.

“So if you look at the new rate card, when you buy more packages, you get more discounts. Then, customers who currently already take multiple packages will actually enjoy savings.

“That’s the reason why we say some customers enjoy savings from anything from RM1 to RM14. In this revision of prices, there is this group of customers who actually save money,” he added.

On the group of customers who would face an increase, he said these are customers who select limited packages and premium content.

“If you buy a few packages and you only handpick the most premium of packages, then you will see that you have an increase and the increase varies, depending which package you take.”

Tan pointed out that this is a price revision that results in three consequences.

“To say that there are only increases is really, really misleading. We can actually name to you the actual packages where customers can save,” he said.

To illustrate the point that Astro’s new offers had been well received, he told the Sabah media representatives that over 60,000 customers have already opted for the Super Value Pack that was introduced.

“These customers are already and effectively enjoying savings,” he announced.

Meanwhile, Rais said he would leave it to the subscribers to decide on Astro’s wish to increase tariffs for its services.

He said this was for the subscribers to judge.

“I call upon subscribers who oppose the hike to express their concerns to us, but it is clear that Astro wants to stick to their decision for profits without considering the interests of the rural community,” he told reporters after visiting residents of Kampung Chennah near Kuala Lumpur on Saturday.

He also said that the hike involved legal matters and he left this to the MCMC to look into.

The Cabinet decided on Friday that Astro cannot increase the tariffs without clearance from the MCMC and that any increase must be reasonable and conform to the law.

“I feel that it is better for Astro to think of the people and not increase their rates as such. The government must also think of reviewing the satellite television monopoly given to Astro,” Rais said.

This minister always talks in SD !!!