32. We recommend that the proposals submitted by Supertech and Windows be re- jected.
33. The two remaining proposals, from HKCC and HCV, are both substantial and detailed. Both represent a substantial investment in time, imagination and detailed planning. We note that HKCC was at a distinct disadvantage in terms of the time available to them to prepare their proposal. In that respect, their achievement is impres-
sive.
34. On balance, on the basis of our findings on both quantitative and qualitative criteria, we prefer the proposal submitted by HCV. Our reasons are summarized as follows -
35.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
HCV is offering a greater variety of programmes with higher produc- tion values (para. 9.5)
HCV's proposals for non-television broadcast services are expected to be more attractive to the public (para. 10.3)
HCV's programming appears to be better value for money in terms of cost of joining and subscribing to the service (para. 12.1 & 12,2)
HCV's customer servicing proposals are better (para. 16.2)
We find HCV's company structure more stable and conducive to consistent control by local interests (para. 22.3)
We consider HCV more likely to compete effectively with TVB, thus in turn offering greater assurance of an active, rather then re-active, programming strategy. (paras 22.2 & 28)
We recommend that the Administration offer the CTV Broadcasting Licence to HCV, subject to the successful outcome of negotiations aimed at improving their bid in a number of areas, including (on the broadcasting and service sides) -
36.
agreement on the length of time for which HCV will adhere to the subscription and joining charges offered in their bid;
agreement on specific targets for levels of customer service;
agreement on the timetable for provision of CTV services to outlying areas;
a more specific offer on unspecified "future services", "distant signals" and "pay-per-view channels".
We recommend that the Administration should not permit the eventual licensee to pursue marketing through block accounts unless all owners of undivided shares in a property have agreed following a properly-organized consultation. This policy should be made clear during negotiations (See paras 17 to 19).
37. We recommend that should negotiation with HCV break down, the Administration should be prepared to turn to HKCC and conclude similar negotiations with them if possible.