19. We expressed reservations, based on the nature of existing DMCs, about the im- plications of a system of marketing which denies to the ultimate end-user the choice of subscribing. We consider that a CTV licensee who enjoyed very substantial revenue from block accounts would be insulated from audience response to their product: this would nullify one of the benefits of a subscriber television service-responsiveness. We also fear risks of corruption, abuse by a minority of building management companies and adverse public reaction.
Qualitative Assessment of Performance of Cable Television Bidders.
20. Following consideration of what is being offered, we have gone to pains to try to convince ourselves as far as possible which bidder might be more likely to keep its promises. The considerations involved in this assessment are set out below.
21. We have drawn our conclusions partly from the written submissions by the bidders, partly from interviews with them and partly from the advice of the Consultants, A.D. Little.
22.
General reputation and track record of bidders.
HKCC's shareholding structure is as follows -
Fig. 8
Shareholding Structure of HKCC
U.S. West Inc.
100%
The Wharf (Holdings) Lid
Sun Hung Kai Properties Ltd
US West Capital Funding Inc.
Tractebel S.A. (Incorp. in Belgium)
100%
100%
100%
66.2%
Dixiana Ltd (Incorp. in HK)
28%
Heecheong Company Ltd (Incorp. in HK)
27%
US West Interna- tional Holdings Inc. (Incorp. in Delaware)
25%
HKCC
Coditel S.A. (Incorp. in Belgium)
Shaw Brothers (Hong Kong) Ltd (Incorp. in HK)
10%
10%
22.1 Wharf (Holdings) Ltd and Sun Hung Kai Properties are reputable, well- capitalized, major local companies. US West Inc is a leading U.S. telephone and telecommunications operator with its roots in the Bell group. Tractebel is a major Belgian holding company and Coditel is its priciple telecommunications and Cable Television operator. Tractebel is controlled by the Suez Group of Paris. Shaw Brothers (Hong Kong) Ltd has its roots in the film industry, but is now mainly associated with the enterprises of TVB. Shaw's now operates a very limited film production operation.