because the bulk of the assessment has had to be made on the basis of promises rather than performance. Any judgement based on guessing the degree to which promises will be kept is bound to be uncertain.
20
The Broadcasting Authority has noted that HKCC's company structure (Wharf: 28%; Sun Hung Kai Properties Ltd. 27%; US West: 25%; Coditel: 10%; Shaw Brothers: 10%) might enable TVB to wield influence out of proportion to the size of its holding. We feel that the presence of two very strong and technically well-qualified partners (US West and Coditel), who are unlikely to yield to the wishes of a TVB minority, would provide some guarantee that TVB's influence will not loom so large. The management of HKCC has indicated that Wharf (Holdings) Ltd will enter into an agreement with US We st to act in concert. Should this agreement materialise, worries about TVB's interest can be allayed.
21
The Administration does not see the case in favour of HCV in such clear cut terms as the BA. We recommend that negotiating efforts should not be devoted solely to HCV, but should include HKCC as well, so that we can satisfy ourselves that the marginal superiority of HCV is not offset by other factors.
Technical Aspects
Cable television network
22
ADL's conclusion is that the
HKCC proposals of
and HCV
•
cable television network
would both meet subscribers' present and future needs utilizing advanced technology While HCV's proposed cable television network makes more extensive use of fibre optics, HKCC's proposal is rated higher in terms of picture quality. On the other hand HKCC proposes to install two-way capability* from the beginning, while HCV does not plan to do this until there is a proven demand for it. Both HKCC and HCV plan to complete their cable television networks within five years, as required in the Guidance Note. HCV's proposal would provide more extensive coverage (e.g. to outlying islands), although this aspect could be the subject of negotiations with HKCC if
* Note:
cable
Two-way capability would allow the subscriber to send signals on a return path down the
cable which delivers the television service, e.g. pay-per-view service
same
or
to
order
а
to indicate choices
in a
a home shopping service. Without two-way capability the return path for such signals could be provided by the subscriber's telephone line.
CONFIDENTIAL