TUESDAY, JULY 12,
JULY 12, 1988
ANNOUNCING THIS DECISION AT A PRESS
CONFERENCE TODAY, THE
III, SAID THAT
A
ACTING SECRETARY FOR ECONOMIC SERVICES, MR RAFAEL SECOND NETWORK LICENSED TO CARRY CABLE TELEVISION AND NON-FRANCHISED TELECOMMUNICATIONS SERVICES WILL OFFER A CHOICE OF NETWORK TO SERVICE PROVIDERS AND ENHANCE THE COMPETITION OF NON-FRANCHISED SERVICES.
CONSUMERS PARTICULARLY BUSINESS USERS WILL BENEFIT FROM A GREATER RANGE OF SERVICES AT LOWER COSTS.
MR HUI POINTED OUT THAT CAREFUL CONSIDERATION HAD BEEN GIVEN TO THE DEGREE TO WHICH THIS WOULD RESULT IN ADDITIONAL PUBLIC DISRUPTION ON THE STREET, AND ANY POSSIBLE IMPACT ON LOCAL TELEPHONE TARIFFS.
THE EXTRA DISRUPTION WILL NOT BE SIGNIFICANT IN COMPARISON WITH THE CURRENT LEVEL OF ROAD EXCAVATION WORKS.
A SECOND NETWORK, PERMITTED ΤΟ CARRY CABLE TELEVISION AND NON-FRANCHISED LOCAL SERVICES, WILL NOT AFFECT HONG KONG TELECOMMUNICATIONS LTD.'S POSITION IN THE PROVISION OF BOTH THE INTERNATIONAL AND LOCAL TELEPHONE SERVICES AND WILL THEREFORE NOT PUT PRESSURE ON HONG KONG TELEPHONE COMPANY'S EXISTING CHARGES.
"SEPARATE LICENCES WILL RE ISSUED FOR THE CABLE TELEVISION NETWORK AND FOR CABLE TELEVISION BROADCASTING TO MAXIMISE THE OPTIONS OPEN TO GOVERNMENT IN LICENSING CABLE TELEVISION SERVICES IN HONG KONG," MR HUI SAID.
FI
WITH THE DUAL LICENSING APPROACH AND THE INVITATION ΤΟ OVERSEAS COMPANIES TO PUT FORWARD PROPOSALS THERE WILL BE GREATER OPPORTUNITIES FOR NEW PARTIES INTERESTED IN PROVIDING CABLE TELEVISION TO PUT FORWARD THEIR IDEAS.
"CONSISTENT WITH THE AIM OF FOSTERING COMPETITION, THE GOVERNMENT HAS ALSO DECIDED TO LIMIT THE PERMISSABLE TOTAL HOLDING BY HONG KONG TELECOMMUNICATIONS LTD. AND/OR ITS SUBSIDIARIES IN THE CABLE TELEVISION NETWORK LICENSEE TO A MAXIMUM OF 15 PER CENT.
"THE GOVERNMENT WILL SEEK PROPOSALS INTERNATIONALLY FOR EITHER THE CABLE TELEVISION BROADCASTING SERVICE OR THE NETWORK OR BOTH. IT IS ENVISAGED THAT INVITATIONS WILL BE MADE IN SEPTEMBER THIS YEAR AND INTERNATIONAL COMPANIES WILL HAVE A PERIOD OF SIX MONTHS IN WHICH ΤΟ MAKE THEIR SUBMISSIONS.
"A FURTHER ANNOUNCEMENT WILL BE MADE BY THE SECRETARY FOR ADMINISTRATIVE SERVICES AND INFORMATION LATER ON THE TERMS UNDER WHICH THE PROPOSALS WILL BE INVITED.
"BOTH THE CABLE TELEVISION BROADCASTING SERVICE LICENCE AND THE NETWORK LICENCES WILL BE ISSUED FOR 15 YEARS, WITH THE FIRST THREE YEARS ON AN EXCLUSIVE BASIS AND THE REMAINDER ON A NON-EXCLUSIVE BASIS. AFTER THE FIRST THREE YEARS THE GOVERNMENT WILL REVIEW WHETHER THERE IS A CASE FOR A SECOND CABLE TELEVISION OPERATOR.
"THE GOVERNMENT
WILL COMMENCE NEGOTIATIONS WITH HONG KONG TELEPHONE COMPANY IN 1989 ON THE QUESTION OF RENEWAL OF THEIR EXISTING VOICE TELEPHONE FRANCHISE DUE TO EXPIRE IN 1995."
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