number of unused microwave frequencies sufficient to broadcast up to three television services over large areas of the territory, and to do so far more quickly and cheaply than would be possible using cables. Although microwave could function as an interim form of subscription television while cable television is being developed, it is not a genuine alternative to cable TV because of the limited number of services it can provide. The Administration therefore does not propose to consider the use of microwave as a long-term alternative to cable TV, but will study its suitability for a limited form of subscription TV service.
Proposals Made for Cable TV in Hong Kong
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Earlier this year the Hong
the Hong Kong Telephone Company submitted an application to establish a cable television service in Hong Kong to be preceded by a pilot scheme in Tai Koo Shing. On 11 March 1986 the Council noted memorandum XCC (86)17 (Annex A) which described the principal features of this proposal. Since then number of other companies and consortia have expressed a preliminary interest in developing Cable TV in Hong Kong, and at least one of these companies is now preparing a detailed proposal.
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The Administration has now studied the HK TelCo proposal in some detail and notes that because the cable technology proposed by TelCo is of the switched-star type, its subscription cost may be far more expensive than that of a tree-and-branch network. Moreover, although HK TelCo has asked for an exclusive 25-year
25-year cable licence for the whole of Hong Kong, it may as noted in paragraph 17 above be feasible to license more than one cable network or programme supplier. In the interests of avoiding a monopoly and to encourage development of more inexpensive cable systems it may be desirable to licence a number of operators.
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the
The Administration thus concludes that for a variety of reasons the HK TelCo proposal may not be the only feasible way to introduce cable TV to Hong Kong, but that the potential exists for other and possibly less expensive systems. In view of the substantial interest in cable TV shown by a number of companies, the Administration proposes as a first step formally to invite expressions of interest from
from prospective cable TV developers.
Such an exercise will enable the Administration to gauge business interest in cable TV and to identify better the different technologies that could be used.