TV operators upset, seek intervention over tariff
APIA - Samoa’s television regulator has set a monthly broadcaster tariff more than double what was endorsed by the prime minister.
The country’s seven television stations are asking the government to intervene in what they say are “ridiculous” rates that will lead to losses and closures.
The television regulator, privately-owned Samoa Digital Company Ltd (SDCL) is managing the country’s transition from analogue to digital broadcast.
It has set the rate television channels each pay at $US13,400 ($F29,253) per month, reduced to $8700 a month for the first six months, effective from November.
Prime Minister Tuila’epa Sa’ilele Malielegaoi had previously endorsed the regulator charging $5600 per month.
In a joint media release, the channels have asked the government to intervene on their behalf. SDCL has a 20-year contract, which the broadcasters say has a capital cost of $2.24 million.
At the lesser rate of $US5600 ($F12,225) per month, SDCL will earn $450,000 a year or $9.4m over their contract, which the broadcasters say is a reasonable return.
At the rate the regulator is demanding, the return will be $21.8m over 20 years, which they say is excessive and unsustainable.