6
Explaining government's broadcasting policy during the motion debate, Mr Chau stressed that deregulation of the pay TV market in Hong Kong was inevitable, not just because the Government remained firmly committed to it as an objective, but also because of technological and market developments which were progressively lowering or eliminating the barriers between markets.
However, he pointed out that complete deregulation now could have a disastrous effect on Wharf Cable, the existing pay TV licensee, as the take-up rate for pay TV in Hong Kong indicated clearly that the market could not accommodate another large-scale pay TV operator.
"In fact, if we did deregulate completely, it seems doubtful if Wharf would break even before its licence expired in 2005," he said.
"Even allowing unlimited competition from video-on-demand could jeopardise the economic viability of Wharf Cable."
He believed the collapse of Wharf Cable at this juncture would not be in the interests of Hong Kong.
"For one thing, it would bring to a premature halt one of the main routes of the Information Superhighway in Hong Kong, and for another, it would result in a public failure of a high-profile, high technology venture just at the time when the eyes of the world are upon us," he added.
The Secretary assured the Council that the Government's proposal to delay further deregulation of the pay TV market and to offer two VOD programme service licences was the best balance achievable in the public interest.
"It should permit Wharf Cable to continue deploying its fibre-optic cable system, and providing choice to Hong Kong's viewers.
"It also enables VOD to proceed as well as introduces a measure of competition in the provision of paid-for television programmes," he said.
On the setting aside of the Broadcasting Bill, Mr Chau would not agree it was the disaster that some had claimed.
On the contrary, he was convinced that even if the Government had pressed on with the Bill, it would not have been possible to introduce it to the Legislative Council in the current session.