on balance, the proposal submitted by HCV is preferred because HCV offers a wider variety of programmes that are expected to compete effectively with wireless TV broadcasters and be more attractive to the public, their cost structure appears to offer better value for money when compared with the programming output;
and
customer servicing proposals are
Furthermore, the corporate structure of HCV appears to be more stable and conducive to consistent control by local interests, and is not exposed to the risk of influence by the existing wireless TV licensees;
their
better.
the Administration should offer the broadcasting licence. to HCV subject to successful outcome of
of negotiations aimed improving their proposal in a number areas; and
(e)
if
negotiations with HCV break down, Administration should turn to HKCC conclude successful negotiations with them.
A.D. Little Report
13 the
the
CTV
the
at
of
the
and
of
in
Consultants A.D. Little (ADL) were engaged to assess technical, telecommunications and financial
aspects bids. ADL also evaluated the programming proposals terms of their impact on the financial viability of the project, particularly their
their ability to attract subscribers and generate revenue. (A copy of the Executive Summary of ADL's report is at Annex E, and copies of the full ADL report are available at the Executive Council Annexe for Members' reference.)
14
Of the four bids received on 28 February 1989 only
two, those from HKCC and HCV, contained sufficient
information for a proper evaluation. Subsequently, on
on 13 April 1989, WTS submitted a second, more detailed, proposal. While recognising that Government might well choose to disqualify the second WTS proposal on the grounds that it was essentially a new proposal submitted after the deadline, ADL for the purposes of completeness and comparison conducted an evaluation of those parts of it for which sufficient detail was given.
15
on
it s
In the event the second WTS submission was found to contain insufficient detail
technical and telecommunications proposals to allow a proper evaluation of the se areas. ADL found the WT'S network proposal, even in conceptual terms, to be dependent on the Hong Kong Telephone Co. to an extent that was inconsistent with Government's
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