23
We
have
identified
the basis of the way forward
-
certain options that could form
(a) Full derequlation of TVROS and SMATV systems
(b)
This would apparently meet the point (cf. paragraph 20 (d) above) that the Hong Kong viewer's freedom to choose should suffer the minimum restriction.
There are, however, fundamental objections to this option in that it would allow a strategy of the type described in paragraph 8 above to be developed with all the possible negative consequences flowing from that, as set out in paragraph 9. Specifically, as explained in paragraph 22, it is highly
highly likely
likely that it would lead to the foundering of the cable TV project and the loss of the second telecommunications network.
Deferment exercise
This
exemption
of the proposed
option
deregulation
would defer proposed of TVROS and SMATV systems from licensing requirements until the beginning of
1994.
The intention
would be to freeze the existing situation i.e. to tolerate the dishes now in existence but to refuse to license, and take enforcement action against any new dishes installed from now on until HKCC had had the benefit of three years of their construction Implementing this would require Telecommunication of 1994 and the three years is
programme. amendments
Ordinance.
the
to
The date
construction period of suggested because if construction
programme
HKCC keep to the that they have
submitted, they should by then have a potential customer network of almost a million households which, it is thought, should allow them to compete on equal terms with SMATV. An incidental advantage of this option is that it will encourage HKCC to keep to, and, if possible, improve
present construction schedule.
on
their
The main drawback to this option is that it will prevent Hong Kong viewers' access to
available through
programmes
television until
1 January 1994
satellite
unless as
CONFIDENTIAL