Astro stops service to pay-TV outfit
By : Amy Chew in Jakarta

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ASTRO All Asia Networks Plc has stopped providing all broadcasting services to its Indonesian pay-TV operation PT Direct Vision (PT DV) effective yesterday.

Astro also ceased providing information technology services, satellite reception equipment lease and channel supply services to PT DV.

In a notice to the Kuala Lumpur Stock Exchange yesterday, Astro said as no payments had been received from PT DV since 2006, Astro's board of directors had decided to cease all support and services and to terminate the Trademark Licence Agreement.

"As Astro has never been compensated for any of the approximately 2.5 trillion rupiah (RM750 million) in support and services that it has provided to PT DV and given that there has been no attempt by the Lippo Group to find an acceptable alternative to the previously proposed joint venture, and that Astro is not and has never been a shareholder in PT DV, this is clearly a situation that cannot be allowed to continue indefinitely," said Astro legal counsel Todung Mulya Lubis.

Up until today, Astro has not received a single share in PT DV.

"Astro has supported PT DV since February 2006 in the belief that arrangements to allow it to invest in PT DV would be concluded.

"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 it has provided, its board has determined that it has no option but to terminate its support to PT DV."

Astro had extended the cessation of services twice from Aug 30 to Sept 30.

It was extended again to Oct 19.

Luis said this was to give PT DV's shareholders, affiliates of the Lippo Group time to pay Astro for the support and services provided or agree on an alternative solution to the dispute that has arisen over the previously proposed joint venture in PT DV.