A. BACKGROUND
I. EXECUTIVE SUMMARY
Following considerable research, the Hong Kong Government decided that cable TV services and a second telecommunications network should be established in Hong Kong. The second telecommunications network is to be used to provide services not covered by existing exclusive franchises or licences.1
The Government's objectives in establishing cable TV service and a second telecommunications network are three-fold:
Improve the availability of high quality TV-based entertainment, enlightenment and education.
Obtain economic benefits from increased competition in telecommunications services.
Stimulate the information services industry in general by supporting the industry with a wider range of cheaper communications services.
The Government intends to use a vertically integrated approach to the project by issuing broadcasting and network licences to a single organisation to develop and operate the services and network.
On 19th September, 1988 the Government invited proposals from interested parties. A Guidance Note (Appendix) was issued to explain the Government's expectations and to describe the information that prospective bidders should include in their proposals. The Guidance Note was comprehensive but deliberately left much to the bidders' discretion in proposing cable TV and telecommunications services and how these should be provided. Proposals from interested parties had to be submitted by the 28th February, 1989.
1 An exclusive franchise has been awarded to the Hong Kong Telephone Company (HKTel) to cover public telephone services. This franchise was granted under the Telephone Ordinance (Chapter 269) and expires in 1995. An exclusive licence has been awarded to Cable & Wireless (Hong Kong) Limited (CWHK) to provide virtually all external circuits, the external telephone services and certain other services, including external and internal telex services. This licence was issued under the Telecommunications Ordinance (Chapter 106) and has until 2006 to run.
1
Arthur D Little