TUESDAY, SEPTEMBER 6, 1988
6
CHANGES TO CONDITION FOR CABLE TV TENDER
*
MR
FOR
THE SECRETARY FOR ADMINISTRATIVE SERVICES AND INFORMATION, PETER TSAO TODAY (TUESDAY) ANNOUNCED TWO CHANGES TO THE CONDITION TENDER FOR CABLE TELEVISION. THE TENDER WILL BE CALLED ON SEPTEMBER 19, 1988. THE CHANGES ARE AS FOLLOWS:
FOREIGN OWNERSHIP
APPROACH
THE GOVERNMENT HAS PREVIOUSLY ANNOUNCED THAT IT WOULD FOREIGN OWNERSHIP RESTRICTIONS ON CABLE TELEVISION (I.E. ON THE BROADCASTER) IN THE SAME WAY AS THE WIRELESS TELEVISION BROADCASTERS.
'WE HAVE SPECIFICALLY MENTIONED A LIMITATION AT 49 PER CENT ON AGGREGATE OWNERSHIP BY INDIVIDUALS OR COMPANIES NOT ORDINARILY RESIDENT IN HONG KONG OF THE CABLE TELEVISION BROADCASTER," MR TSAO SAID.
"TO APPLY THE TELEVISION ORDINANCE UNMODIFIED ΤΟ CABLE TELEVISION BROADCASTING WOULD HAVE THE EFFECT THAT NO INDIVIDUAL COMPANY COULD TAKE MORE THAN A 10 PER CENT EQUITY HOLDING IN THE CABLE TELEVISION BROADCASTER.
"CLEARLY, SUCH A RESTRICTION WILL BE A DISINCENTIVE ΤΟ FUTURE NETWORK OPERATORS BECAUSE SO MUCH OF THEIR PROFITS WOULD DEPEND ON THE ACTIVITIES OF THE CABLE TELEVISION BROADCASTER.
"GIVEN THAT WE DO NOT ANTICIPATE THAT CABLE TELEVISION'S MARKET PENETRATION WILL REACH THE EXTREMELY HIGH LEVEL OF WIRELESS TELEVISION, AND THAT FURTHERMORE, THE AUDIENCE WILL BE FRAGMENTED OVER A NUMBER OF CHANNELS, WE HAVE CONCLUDED THAT THE VERY SEVERE RESTRICTION OF 10 PER CENT WILL DETER PARTICIPATION BY FOREIGN BIDDERS AND IS NOT APPROPRIATE." HE EXPLAINED.
HOWEVER, WE STILL HOLD A VIEW THAT IT IS APPROPRIATE TO ENSURE THAT NO LESS THAN 51 PER CENT OF EQUITY IS HELD BY LOCAL INTERESTS, SO THAT THE RULES ON CABLE TELEVISION REMAINS BROADLY IN LINE WITH THOSE APPLICABLE TO WIRELESS TELEVISION, HE SAID.
"WE ARE CONFIDENT THAT THIS RESTRICTION WILL NOT DETER SERIOUS BIDDERS FOR THE CABLE TELEVISION LICENCES. WHILE REMAINING CONSISTENT WITH OUR GENERAL POLICY THAT LOCAL TELEVISION BROADCASTING SHOULD BE FIRMLY ROOTED IN HONG KONG," HE ADDED.
/ROYALTY