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by means of a continuous increase in the number of wireless
receiving sets in use and their business and advertising rev- enue cannot expand as a result of increases in the number of wired sets connected to the service of a competitor.
15. Hong Kong Government's Attitude: Although it is under- stood it would be RTV's intention to operate a straight and separate relay service with TVB's programme (1.e. they would
run wires in parallel to those carrying their own service so that a householder could receive, on payment, either RTV's own service or TVB's entire service on the same wired set by adjust- ing a switch), the Hong Kong Government consider it undesirable that RTV should be allowed to sell the product of their compet- itor without the latter's consent.
THE COMMUNAL AERIALS ISSUE
16. Communal Aerial Systems: It appears not to have been apprec- iated in 1957 when the licence was granted to RTV that, by reason of the hilly terrain and the skyscraper buildings, many people in Hong Kong and the New Territories would not be able to receive satisfactory wireless television signals but would need some form of wired communication to an effectively sited aerial or receiver
away from their apartments or dwellings. This has been found to
be the case as a result of the commencement in Hong Kong of wire- less television broadcasting by TVB. Special aerials are required not only to provide a wired relay service but also for
the satisfactory reception of wireless television in many areas.
Accordingly, the exclusive rights to erect such serials granted to RTV in the licence (see paragraph 20 below) have assumed greater importance than the Government of Hong Kong contemplated when those rights were granted.
17. Such special aerial systems fall into two broad categories:
(a) the Community Antenna Television System (CATV)
This is a system adopted in areas where the nature of the terrain makes it difficult or impossible for individual buildings to obtain good television reception. Under
this system, a single communal aerial is erected in a
position where good reception can be obtained and amplified
if necessary. The television service is then distributed
by line from a single communal aerial to independent
detached premises. One such master aerial can serve all
the homes in a large town;
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/(b)