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WEDNESDAY, APRIL 29, 1992
TV
ON THE QUESTION OF THE TECHNOLOGY TO BE USED BY THE FUTURE PAY- SYSTEM, THE SECRETARY SAID THE GOVERNMENT WAS ADOPTING A
TECHNOLOGY-NEUTRAL APPROACH.
"WE WILL THEREFORE NOT STIPULATE WHAT TECHNOLOGY SHOULD BE USED IN THE DELIVERY OF THE PAY-TV SERVICE.
"HOWEVER, WE DO HAVE A PREFERENCE FOR CABLE, BECAUSE WE BELIEVE THAT CABLE'S CAPACITY TO CARRY LARGE NUMBERS OF TV CHANNELS, TO OFFER INTERACTIVE SERVICES AND TO SAVE ON SPECTRUM UTILISATION HAS DEFINITE ADVANTAGES OVER OTHER DELIVERY MEDIA SUCH AS MULTI-CHANNEL MULTI-POINT DISTRIBUTION SYSTEM OR SMATV," HE SAID.
ON THE ISSUE OF THE PROVISION OF TELECOMMUNICATIONS SERVICES AS PART OF THE FUTURE PAY-TV SYSTEM, MR SO STRESSED THAT THE GOVERNMENT'S CONCERN IN THIS EXERCISE WAS TO ESTABLISH
AN EFFECTIVE REGULATORY FRAMEWORK FOR TELEVISION.
"IF PROVIDERS OF THE PAY-TV SERVICE WISH TO PROVIDE CERTAIN TELECOMMUNICATIONS SERVICES IN ADDITION, THAT IS A SEPARATE MATTER то CONSIDERED IN THE LIGHT OF THE GOVERNMENT'S POLICY ON TELECOMMUNICATIONS," HE SAID.
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"PAY-TV OPERATORS WILL NOT BE REQUIRED TO PROVIDE TELECOMMUNICATIONS SERVICES. THEIR PROPOSALS WILL BE ASSESSED MAINLY ON BROADCASTING GROUNDS, HE ADDED.
TURNING TO THE EXISTING ROYALTY SCHEME ON TELEVISION BROADCASTERS, MR SO EXPLAINED THAT THE BROADCASTING REVIEW BOARD (BRB), IN ITS 1985 REPORT, SET OUT THE FOLLOWING PRINCIPLES ON ROYALTIES :
* ROYALTIES SHOULD BE CHARGED FOR THE GRANT OF A FRANCHISE то OPERATE A SERVICE TO THE PUBLIC WHERE THE GRANT IS EITHER ON AN EXCLUSIVE BASIS OR WHERE COMPETITION IS RESTRICTED;
IN THE CASE OF TELEVISION BROADCASTING, ROYALTIES SHOULD BE CHARGED FOR THE PRIVILEGE AND BENEFITS ENJOYED FROM THE ALLOCATION OF A COMMUNITY RESOURCE (1.E. AIR-WAVES) AND FROM LIMITED COMPETITION, IRRESPECTIVE OF WHETHER PROFITS ARE MADE; AND
THE RATE OF THE ROYALTY CHARGED MUST, HOWEVER, NOT BE 90 HIGH AS EITHER TO JEOPARDISE THE SURVIVAL AND DEVELOPMENT OF A LICENSEE.
"HENCE, THE EXISTING ROYALTIES LEVIED ON TVB AND ATV ARE BASED ON REVENUES RATHER THAN ON PROFITS AND HAVE FULL REGARD TO THE PRINCIPLES SET OUT BY THE BRB, HE SAID.
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"IN THE COURSE OF THE CURRENT REVIEW WE SHALL BE LOOKING AGAIN AT THESE PRINCIPLES TO SEE WHETHER THE ROYALTY SCHEME IMPOSED ON OUR BROADCASTERS SHOULD BE MODIFIED IN VIEW OF THE CHANGING ENVIRONMENT INCLUDING THE ONSET OF. SATELLITE TELEVISION, HE ADDED.
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THE SECRETARY SAID THE GOVERNMENT WOULD ALSO BE LOOKING AT QUESTION OF ADVERTISING IN THE REVIEW.
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