Astro was ended support and service to Direct Vision (DV)
— yulyanto • September 7th, 2008
Trademark license agreement who owned by Lippo Group’s unit, PT Direct Vision (DV) from The largest cable television operator in Malaysia, Astro All Asia Networks Plc was expired on August 31, 2008.
Astro has not renew the agreement and also ended support and services to DV and the time limit will be ended thirty-days grace period after its. It means that DV is only have time till October 01, 2008 to make an alternative arrangements and mitigate the impact on its customers.These decisions were undertaken by Astro after invoice for support and services amounting to approximately around 805 million Ringgit Malaysian or equivalent with US$ 245 million, including interest on all of ourstanding payments due since March 2005 has not been settled to date by DV.
While, DV senior vice president for corporate affairs, Halim Mahfudz had little to say about how his company would deal with its subscribers after the termination takes effect. Now, DV was still awaiting directives from shareholders to solving this problems.
Astro was invited by Lippo Groups to become a strategic partner in DV. The two companies entered into an agreement on March 11, 2005 for the establishment of a Joint Venture (JV) to operate a cable TV business in Indonesia through DV.
Under the agreement, Astro owns a 51% stake in DV and 49% belonging by Lippo Groups. In the year of 2005, the government limited foreign ownership shares in media businesses by up to 20 percent, while the application for new broadcasting licenses was being processed. As a result, the two parties were forced to revise their joint-venture agreement.
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