Gehua on defensive over fees ( 2003-08-05 09:26) (China Daily)
Beijing's only cable television provider issued a public statement Monday to
justify its controversial increase in subscription fees.
It was the first time that the Shanghai-listed Beijing Gehua CATV Network Co
Ltd had spoken out since the company received formal summonses in mid-July for
two civil cases against it.
However, the company insisted in its statement that the price hike was legal
and had been approved by the Beijing Municipal Pricing Bureau.
"In any case, cable TV subscription fees are not listed in the category of
items that need a public hearing in Beijing," the company said.
Gehua announced at the beginning of July that it would charge each subscriber
18 yuan (US$2.20) a month, starting that month.
The price rise of 6 yuan (72 US cents) raised the hackles of many Beijingers,
who believed that the public's voice should have been heard before the company
raised the price since the firm has a monopoly.
In mid-July, two consumers initiated lawsuits against the company.
Hao Yunfeng, a lawyer with the Beijing Liaohai Law Office, filed a case
against Gehua in his capacity as a consumer on July 17. He accused the company
of violating consumers' right to accurate information and the right to a fair
deal.
Another plaintiff, known only by the surname He, went to court the next day.
She accused Gehua of not informing her of the price hike before collecting an
additional 6 yuan from her bank account.
Both plaintiffs said they have felt uncomfortable at Gehua's "overbearing"
attitude towards its customers.
Hao said: "I do hope my action will attract the government's attention and
get cable TV included on the list of items that need a public hearing."
Xu Lianzhong, the branch director of the National Development and Reform
Commission's Pricing Monitoring Centre, said the Pricing Law will be revised
later this year.
"The amended law will be more specific as to which
