HKT could start to plan the provision of a cable television network as soon as licensed to do so. Indeed it already has a small broadband network planning group in place, developing computerized mapping and cable planning techniques for the special situation of Hong Kong.
3.2.2 Revenues from cable television services
The revenue forecasts for cable television are based on five key variables:
homes in the service area
build rates
quality and attractiveness of the programming (in turn dependent on the resources and budget available for programme production and acquisition)
consumers' willingness to pay
connection rates
3.2.3 Homes in the service area
Our estimates of the number of homes in the service area are taken from the official Government forecasts on the growth in households in the Territory.
3.2.4 Build rates
HKT and HCV are both projecting a 5 year build rate to pass all homes within the franchise area. BAH believe that it may take six years to complete their construction programmes.
3.2.5 Programming
Both potential cable television operators are proposing a basic programming package to meet the needs of Hong Kong's Cantonese and English speaking population. A variety of "premium" services with additional channels of movies, entertainment, news and information would be offered for an additional monthly charge depending on which combination is selected. Increases in local production will be partially funded by real rate increases in the monthly charge.
Before finalizing its programming decisions, the potential operators reviewed a wide variety of surveys on viewers preferences, analyses of past performance of various programmes of TVB and ATV broadcast schedules, trends in Hong Kong entertainment, including records, concerts, radio, and cinema, and programming experience in the United Kingdom and United States.
To meet the needs of Hong Kong's population, a cable service would have to acquire or make some tens of thousands of hours of programming per year.
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