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Home arrow News arrow News Archives arrow August 2007 arrow Flow, Matrix face legal bind with Broadcasting Commission over acquisition


Flow, Matrix face legal bind with Broadcasting Commission over acquisition PDF Print E-mail
Written by jamaicaobserver.com   
Wednesday, 29 August 2007
Following on the heels of Flow's announcement that it had acquired Hanover-based subscriber television provider, Matrix Entertainment and Communication, the Broadcasting Commission said it has received no application from the cable provider for approval of the sale.

"The St James and Hanover licensee has not applied to the Commission for the necessary prior approval as stated in the Television and Sound Broadcasting Regulations," said a statement issued by the state agency on Monday.

The regulations stipulate that "where there is to be a transfer of ownership or change of person in control of the business, the licensee shall, before the transfer or change is effected, first obtain the approval of the Commission."

Added the Broadcasting Commission: "(The Commission) is advising the public that it has not approved any change of ownership or control of the cable company Matrix Entertainment & Communication Company Limited (Matrix)".

On that, the regulator has written to both Matrix and Flow about the legal position and instructed that if there has been any unlawful acquisition, stringent regulatory action will be taken.

Last Friday, Flow announced that it had acquired the assets of Matrix, making it the fourth cable operator bought out by the telecommunications firm.

The company, which forms a part of Jamaican-Canadian billionaire Michael Lee Chin's assets, started rolling out its triple play services - Internet, landline telephone and cable TV - in mid-2006, the same time it made the first of its acquisitions - SAUCE.

Following the acquisition in June last year, the company acquired D&L Satellite and Communications Network Limited based in Kingston and Northern Cable and Communication Network, which serves Ocho Rios, St Ann's Bay and its immediate environs earlier this year.

The acquisitions have enabled the company to grab up existing customers, providing immediate cash flow, while eliminating the competition pushed by the more than 50 cable companies in operations now.

Currently, Flow supplies cable television service in Kingston and St Andrew, St Ann and St Mary, according to Flow's marketing director, Jean McPherson.

She said that her firm plans to start offering all-digital cable service to the subscribers of Matrix as of October 1, and plans "to blanket the island with its digital broadband network runs over a four-year period". She anticipates completion of this coverage by 2011.

Offers will be made to the employees of Matrix, who McPherson said will enjoy the benefits of "Flow's extensive training programmes".

Flow is the brand name of Columbus Communications Jamaica Limited, a member of the Columbus Communications Group of Companies, which currently provides telecommunication services in 21 Caribbean countries.

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