For discussion
on 7 July 1987
The Problem
ANNEX I TO XCC(88)97
MEMORANDUM FOR EXECUTIVE COUNCIL
XCC (87) 102 Copy No..
CABLE TELEVISION AND TELECOMMUNICATIONS
DEVELOPMENT IN HONG KONG
A
B
>
On 8 July 1986 after considering memorandum XCC (86)122, a copy of which is at Annex A, the Council advised and the Governor ordered, inter alia, that the Administration should invite expressions of interest from cable television developers in Hong Kong. Accordingly, a Gazette Notice was published inviting proposals to establish cable television in Hong Kong.
2
Eight proposals were received, of which two are considered to be comprehensive and technically feasible. One was submitted by Cable Television Hong Kong (CTHK), in which the Hong Kong Telephone Company (Telco) has a 38% holding; and the other by Hutchison CableVision (HCV), in which British Telecom plc (BT) has a 40% holding. Some background information on the two main contenders is at Annex B.
3
Both CTHK and HCV are seeking an exclusive right to operate cable television. CTHK intends to use a network to be provided by Telco; while HCV has indicated that it will provide its own network. However, Telco's existing low capacity network is unable to carry cable television and it would be necessary to
necessary to instal a more advanced type of wiring capable of carrying more information. This higher capacity wiring (using optical fibres or coaxial cables) is generally
called broadband.
4
Using cable television as a springboard, both Telco and HCV/BT are,
are, in effect, bidding for the provision of a broadband telecommunications network in Hong Kong using technology that could facilitate the transmission of not only cable television but also other telecommunication and inter-active services (e.g. leased circuits for business use, home banking, home shopping, etc.). Both contenders have
indicated that the level of investment for such a network is in the order of $2-3 billion. Except for cable television and Telco's existing franchised services, both accept that other broadband services (as distinct from the network itself) would be competitive. Telco, as the sitting tenant, already has a basic network of ducts most of which could be used for the and, indeed, Telco claims that the upgrading is already in progress.
provision of an upgraded broadband network
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