UPC Cablecom cancels basic encryption

UPC Cablecom announced today that it is discontinuing basic encryption for digital television and Internet service, thereby responding to a long-standing demand from customers and consumer advocates.

UPC Cablecom is announcing the switch as the "biggest change in the Swiss TV landscape since the introduction of digital television". This "fundamental change to the cable connection" was decided in order to take account of the fact that 80 percent of Swiss households already watch digital television, writes Cablecom in a press release. In future, owners of current TV sets (DVB-C tuners) will be able to receive 55 channels (including 19 in HD) without a Digicard or set-top box. Television sets without a digital receiver will nevertheless be able to benefit from the extended digital channel range from January 2013 by means of a free converter, UPC Cablecom writes in a press release.

The cable connection will cost 90 centimes more per month from 2013 (60 centimes more thereafter). In return, customers will be able to save the monthly rental fee (CHF 4 per month for the entry-level offer) for the set-top boxes or the one-off fee for the Digicard (CHF 99). The price increase is explained by Comparis expert Beyeler as follows Blick.ch was considered moderate, but the Cablecom offer had already been excessively high before. From 2013, customers will pay CHF 28.40 per month - with independent cable providers, the costs are usually between CHF 10 and 20. In a statement inadvertently published too early by the Foundation for Consumer Protection, SKS head Sarah Stalder also called for Swisscom, Sunrise and the remaining cable providers to follow suit and remove their encryption.

In addition, all customers are offered a 2Mbit/s Internet line. This capacity is easily sufficient for e-mail and normal surfing. The offer will be included in the basic monthly price.

For customers who have subscribed to the current basic digital Mini package, the offer will be expanded to 70 channels. Customers who wish to switch to the new digital basic offer can do so by observing the contractual notice period or at the end of their respective contract term. According to UPC Cablecom, the switch is free of charge. The basic analog service (36 channels) will also be retained for the time being. However, UPC Cablecom once again emphasizes that the relevance of the analogue network is continuing to decline and that a further reduction in the range of channels is therefore foreseeable. Thanks to the free converter, however, digital switchers will no longer be forced into expensive subscriptions, as was previously the case (provided the television did not have a CI+ slot).

Positive reactions

In an initial reaction, Swiss Consumer Protection (SKS) expressed its satisfaction with UPC Cablecom's decision to remove basic encryption. This fulfills a long-standing demand of the SKS. Swisscom and Sunrise must now follow suit. According to the news agency SDA, price watchdog Stefan Meierhans also expressed his satisfaction. The Cablecom innovation would bring substantial added value for basic service customers switching to digital television. The elimination of the set-top box will also save electricity. Overall, the price increase of CHF 1.50 for the cable connection within two years is justifiable.

Not an issue at Swisscom

At Swisscom, the abolition of basic encryption is "currently not an issue", as media spokesperson Olaf Schulze told the news agency SDA when asked. Cablecom's decision shows "that competition is at play". Incidentally, various cable providers already offer TV services without basic encryption. Michael Burkhardt, Head of Sunrise Communications, pointed out at the request of the SDA news agency that the situation at Sunrise is completely different: Sunrise offers all channels digitally via the Internet using IPTV technology. The issue of basic encryption therefore does not affect this provider.

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