satellite television signals intended for general reception directly by the public either for viewing on 2 single television set or distributed to a number of television sets within single buildings (including hotels), or a number of buildings in a single property development such as housing estate (such distribution being comparable to existing communal television antenna systems for receiving the terrestrial broadcasters); and

a

reception of satellite television signals that are intended for reception by a particular receiver, which is presently undertaken by CWHK as an exclusive service for the intended receiver, e.g. Asia Television Ltd. and Television Broadcasts Ltd. In this case, the local television company will have paid a significant fee to the programme originator and will normally require to add commercials in order to recoup its costs.

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From the point of view of telecommunications policy, there is no objection to exempting activity (a) above from the need for licensing because

18

(a)

(b)

for

the use of TVRO dishes does not cause any interference or other technical problems

telecommunications equipment

other operations; and

or

CWHK accepts

accepts that, notwithstanding the terms of its exclusive licence, it is unrealistic to contend that it should have the exclusive right to receive broadcast signals which may be and are intended to be received directly.

The current realities in satellite TV signal reception argue for complete deregulation of TVRO dish use, i.e. including activity (b) in paragraph 16 above. However, given Hong Kong's international obligations not to encourage the unauthorized reception of satellite signals not intended for general reception, we propose that the licensing requirements of the Telecommunication Ordinance be retained for those TVROS which are used for the purpose of receiving signals not intended for general reception. Applying a licensing requirement only to this category of TVRO operators will substantially reduce the enforcement problems associated with the licensing of all TVROS. In practical terms, action to enforce licensing requirements would only realistically be possible should an aggrieved party complain.

CONFIDENTIAL

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