INDONESIA: Astro stops services in Indonesia
Local cable operator Direct Vision apologizes for the Malaysian-based broadcasting company's termination of service
The Jakarta Post
Monday, October 20, 2008
The Malaysian-based Astro All Asia Network broadcasting company terminated services to its customers via PT Direct Vision as of last night.
Customer A. Raharjo told tempointeraktif.com that he knew service was being terminated from the news but he had not believed it as there had been no official notification from Direct Vision, a company under the Lippo Group via PT First Media.
"Last night even local channels such as Metro TV and SCTV suddenly disappeared. Astro's channels, for example Awani, were no more there," he said.
Visitors to Astro's local website, www.astro.co.id are redirected to www.directvisiontv.com, where the management of Direct Vision apologizes to its customers for the termination of service "until further notice". It promises to reimburse its customers who have paid in advance for any undelivered services.
Halim Mahfudz of Direct Vision said Monday the company had 98,000 customers. Out of that number, only 36,000 had paid in advance.
Last month, Astro decided to not renew its contract with Direct Vision which is 49 percent owned by the Lippo Group unit after allegations that the latter had failed to pay a $245 million bill, which Astro had spent in Indonesia.
According to recent Malaysian media reports, the breakup of Astro's joint venture is the latest in a series of business rows between Lippo Group (with James Riady at the helm) and the Malaysian business group controlled by the high-profile tycoon Ananda Krishnan.
The two conglomerates were previously engaged in a property business in Singapore and a mobile telecommunications business in Indonesia.
Date Posted: 10/20/2008
http://www.asiamedia.ucla.edu/article-southeastasia.asp?parentid=99398
Astro finally pulls plug on Indonesia service
by Asiya Bakht 21-Oct-08, 16:09
JAKARTA - Malaysian pay-TV operator Astro has discontinued the provision of all services to its Indonesian partner, Lippo Group subsidiary Direct Vision (DV).
The situation is believed to be a result of a much-publicised dispute between tycoons Anand Krishna and James Riady, who head Astro and Lippo, respectively.
In August, Astro announced its decision not to renew its contract with DV, which lapsed on August 20. However, the Malaysia company has decided to extend its service agreement on two occasions, first until 30 September and then until 19 October. It had also allowed DV to use the ‘Astro’ name under the trademark licence agreement, on the condition that DV settles its outstanding payments to Astro.
Astro now says that as no payments have been received from DV, its board of directors have decided to cease all support and services and to terminate the trademark licence agreement.
“Astro has supported PT DV since February 2006 in the belief that arrangements that would have allowed it to invest in PT DV would be concluded,” said Astro legal counsel Todung Mulya Lubis. “But since it has been more than two years and there is no indication that any such arrangements will be concluded or that Astro will be paid for the support and services that it has provided, its Board has determined that it has no option but to terminate its support to PT DV.”
Until now, Astro was providing broadcasting services, information technology services, satellite reception equipment leasing and channel supply services to Direct Vision.
According to Todung, Astro has not been compensated for Rp 2.5 trillion (US$ 250 million) worth of support and services given to DV.“This situation has arisen purely as a result of a commercial dispute between Astro and Lippo Group in relation to the non conclusion of the proposed joint venture between the parties in PT DV.”
http://www.brandrepublic.asia/Media/Mediaarticle/2008_10/Astro-finally-pulls-plug-on-Indonesia-service/32991
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