Price watchdog criticizes Cablecom over Digi-TV

Price Commissioner Rudolf Strahm is calling for more affordable access to digital TV for Cablecom customers. The main point of contention is the price of set-top boxes.

Price watchdog Rudolf Strahm has called for cheaper digital TV converters for cablecom customers. The cable network operator was charging too high prices for the so-called set-top boxes, which are necessary for converting to digital television. The set-top box costs CHF 495 to buy and CHF 15 to rent for the first 6 months and CHF 25 thereafter. In the EU, such boxes cost between 50 and 80 euros, as reported by SDA. "Cablecom now has a monopoly not only on the cable network, but also on the boxes," confirmed price watchdog Rudolf Strahm in an article in the free newspaper 20 Minuten on Thursday.  
He is also bothered by the fact that Cablecom encrypts its digital offering so that only its own devices can be used. According to the price watchdog, customers can buy and use unencrypted set-top boxes from other Swiss network operators. Strahm is therefore demanding that Cablecom either share the key with all manufacturers or massively reduce the prices for the devices. Cablecom did not wish to comment on this when asked by SDA.
 
The background to Strahm's demand is Cablecom's announcement on Tuesday that two previously analog channels from its program offering will only be shown digitally in future (see
). This is part of the company's strategy to drive forward the digitization of television. Cablecom justifies the channel shift from analog to digital signal distribution with the "increasingly scarce frequencies".  
According to an agreement with the price watchdog valid until the end of 2006, Cablecom must offer at least 37 analog channels in its television service. This minimum limit has already been reached in certain areas, Strahm told SDA. He was unable to comment on the negotiations for a new agreement at the present time.

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