CONFIDENTIAL
XCC(93)148
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(iv) apply for a fixed period licence; the length of future licences can range from three to 12 years and this is for applicants to propose in the first instance (paragraph 16).
Members will be asked to advise whether this recommendation should be approved.
BACKGROUND AND ARGUMENT Background
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We became aware of the problems with the satellite television regulatory framework earlier this year when Asia Business News (ABN), which had enquired about uplinking from Hong Kong a regional financial news and information programme service covering the markets in Hong Kong, Indonesia, the Philippines, Thailand and Taiwan, eventually based itself in Singapore. ABN is a joint venture comprising Television New Zealand Ltd, Tele-Communications Inc of the United States, Business News Network of Hong Kong, SIM Ventures Pte Ltd of Singapore and lately Dow Jones & Co. based in New York. Some of the reasons for ABN's decision to uplink from Singapore was, we have been told, ABN's perception that our licensing framework was unduly restrictive, that the application procedure was lengthy and that there was no guarantee of success. Our licensing requirements contrasted rather unfavourably with Singapore's willingness to be as flexible as possible. Our requirement that majority control of a regional broadcaster uplinking satellite television from Hong Kong should be in local hands was particularly onerous from their point of view.
LO
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In the absence of broadcasting legislation providing for satellite television broadcasting, we have so far relied on the Telecommunication Ordinance for the necessary powers to regulate satellite broadcasting. For the immediate future until a Broadcasting Ordinance is in place, new uplink licences would need to be granted under the Telecommunication Ordinance. The broadcasting provisions in Hutchvision's licence, which is non-exclusive, are in accordance with the framework approved by this Council. Since then, no other application has passed beyond the stage of initial enquiries. By adhering to the framework which was more or less designed with Hutchvision in mind at the time, we might accidentally have created a monopoly situation for Hutchvision.
Executive Council