TTT 署
CUNFIDENTIAL
Secretary for Administrative Services and information
GOVERNMENT SECRETARIAT.
LOWER ALBERT ROAD. -ONG KONG.
13 July 1989
Our Ref: ASI3/1 13/1043C(39) Pt.3
Tel.No.:
5-3102351
Mr. M.P. Elphick,
Executive Director,
Hong Kong Cable Communications Ltd.,
21/F., Wheelock House,
20 Pedder Street,
Hong Kong.
SUBJECT TO LICENCE
Dear Sir,
to
operace.
Since the submission on 28 February 1989 of your bid ΞΟΥ the Cable Television licences the Government has carefully assessed the contents of your bid, and has considered its Own position on the regulatory and operational environment in which it expects che CТУ System in order thac your application may be considered further, Your acceptance Of certain additional conditions is now sought. The Administration is prepared enter into immediate discussions with you. I propose that we
and on 24 July 1909
thereafter as
I therefore set appropriate.
out
on hereunder the points which we would be seeking acceptance and/or clarification:
to
(a)
meet
Royalties
Commencing icom the grant of the licences, the licensee will be required to pay royalty, calculated on the following scale but subject со an overall ceiling of 10%, on gross receipts from subscription and advertising (including items such as installation charges, other service charges, extra outlet charges, converter rental, duct rental and sponsorship):
First $500 m
on
Next $500
13
3%
Next $500
93
Next $500 m
Next $500 m2
Exceeding $2,300 million @ 15%
The royalty will be payable on an annual basis.