Urgent Business: Hong Kong, Freedom of Expression and 1997
liberalized in a parallel "open sky" policy. The tendering process, however, broke down in late 1989 with one of the two finalists, Hutchison Whampoa, a company controlled by businessman Li Ka-shing, pulling out to concentrate on developing a satellite franchise instead. The other finalist, a consortium led by Wharf Holdings, later disintegrated, forcing the government to re-tender for subscription television. Wharf has since re-entered the bidding with a new consortium and - as the only tenderer - is set to take up the franchise in 1993.
In the meantime, HutchVision, a subsidiary of Hutchison, was awarded a 12-year, non-exclusive licence in December 1990 to uplink television signals from Hong Kong to its own AsiaSat-1 satellite.10 Its five-channel, pan-Asian Satellite Television Asia Region (StarTV) service began transmission in late 1991, though local licence restrictions designed to protect TVB and ATV for three years prohibit it from broadcasting in Hong Kong's language, Cantonese, and from charging directly for its services.
Such a regional satellite service from Hong Kong has a footprint extending from northern China to Indonesia, and from Japan to Pakistan. It has implications for sovereignty and state control of the media in some Asian countries. China has banned reception of StarTV, which carries mainly franchised Western television programmes including channels devoted to music videos, soap operas and drama, and one to BBC World Service Television, which focuses on news and current affairs.
5.2.5 Telecommunications
Domestic public telecommunications services are provided by the Hong Kong Telephone Co. Ltd. which has an exclusive franchise on voice transmissions within the territory until 1995, though a similar franchise on facsimile and other data transmission is to be wound up by the Governor. From January 1993, as part of the liberalization of broadcasting and telecommunications, potential pay television operators are to be allowed to bid for telecommunications licences. After 1995, competition is to be allowed on voice transmissions
also.
International telecommunications services are the exclusive right of Cable and Wireless (Hong Kong) Ltd., whose franchise expires in 2006. This company merged with Hong Kong Telephone in December 1988 to become Hongkong Telecommunications (Hongkong Telecom), one of the largest public companies in the territory. China's international investment arm, CITIC, has a significant stake in the merged concern, which is controlled by the UK company, Cable and Wireless.11
10
The licence is granted under the Telecommunication Ordinance.
11
Chan Kai-cheung (1990), supra note 3, at 533.
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