GREEN

The Broadcasting Commission has acquired court injunctions against telecommunications firm Flow and cable operators Entertainment Systems Ltd (ESL).

The injunctions come just days after cable subscribers of ESL raised concern over Flow's recent acquisition of the assets of the Kingston and St Andrew-based company.

Customers complained that they were not informed of the sale until after it was finalised.

Cordel Green, executive director of the regulatory body, said the commission was just as surprised by the transaction, as Flow had neglected to inform them of negotiations with the directors of ESL.

No business

The injunction against Flow, which took effect at 2:15 p.m. yesterday, bars the fast-growing multimillion-dollar firm from acquiring the assets or ownership of any other cable television distributor without the commission's approval.

Flow has also been barred from making any changes to the contractual arrangement previously made between ESL and its customers, including adjustment of fees and payment schedules.

The second order, which is against ESL, stipulates that the cable operator is prohibited from making any further steps in the sale or transfer of its assets to Flow until the court has reached a decision.

The stop order, according to Nicola Brown of the Attorney General's chambers, is in effect for 14 days. After this time, the court will hold a hearing to decide whether the order will be extended.

Green said the main issue at stake was the interpretation of an aspect of the regulation which states that a licensee is required to gain the approval of the commission before a transfer of ownership can occur.

Breach of broadcast act

He said that, since August 27 last year, Flow was informed that it was in breach of Regulation 28 of the Broadcasting Act, as it had gone ahead and acquired the assets of some four cable operators without the commission's approval.

"The commission was basically reading in the newspapers, like everybody else, that the arrangements for cable companies were changed overnight," Green said.

Green said that, despite its insistence to Flow that it was in violation of the regulation as it relates to its last four acquisitions, the company went ahead with its most recent deal.

"This has now resulted in an appeal to the court for a further pronouncement on the matter," he said.

Jean McPherson, director of marketing at Flow, yesterday told The Gleaner that the company had in fact been served with the stop order.

"We are reviewing that injunction and we will respond to the Broadcasting Commission promptly," she said.

Stephen Chung, former director of ESL, told The Gleaner last night that he was not yet able to say anything about the injunction.