are
The
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Secondly, there are two basic types of technology for cable television. The first, known as the tree-and-branch type, is a fairly simple technology in which programmes carried by trunk cables from the programme source and distributed by 'branch' cables into subscribers' homes. advantages of tree-and-branch technology are that it is technically reliable, relatively inexpensive and easy to install. A further advantage of
advantage of tree-and-branch if used in Hong Kong is that it could make use of the CABD television systems which operate in many housing blocks.
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The other basic type of
type of cable technology is the 'switched-star' system. This is a more sophisticated technology which enables subscribers not only to receive cable TV but also to send messages back to the programme source. It can therefore be used to provide subscribers with a whole range of two-way, interactive services such as tele-banking, home shopping etc. which are more difficult to provide using a tree-and-branch system. The switched star technology is however far more expensive than tree-and-branch and is a largely untried technology (most cable TV systems around the world are of the tree-and-branch type).
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Thirdly, it may be both technically and financially viable to operate more than one cable network in Hong Kong. Elsewhere, cable television systems have proved successful and profitable over franchise areas of smaller size and lower population density than Hong Kong. It may thus be possible to licence a number of operators, possibly on a regional basis.
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Lastly, if cable television develops in Hong Kong in the same way as it has elsewhere - as a minority programme complementing the off-air television stations - its
ww
source effect on the audience and revenues of the off-air broadcasters
may be tolerable. Any impact on the broadcasting stations is likely anyway to be gradual due to the substantial lead time needed to install a cable TV network.
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Overall it is concluded that cable television could be a useful addition to Hong Kong's broadcasting services in that it would provide a greater choice of programmes and in particular serve minority viewing interests.
The Administration believes that in principle it would be beneficial to allow cable television to develop in Hong Kong.
The Use of Microwave Frequencies
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As an alternative to the use of cables it may also be possible to provide a limited number of subscription television services using microwave frequencies. There are at present a
CONFIDENTIAL