XN000022-1986-08-01 — Page 2

FRIDAY, AUGUST 1, 1986

FAVOURABLE POSITION FOR DEVELOPING CABLE TV

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HONG KONG SHOULD, THEORETICALLY, BE LARGE ENOUGH TO ACCOMMODATE MORE THAN ONE CABLE TELEVISION LICENSEE BUT IT WILL BE PREMATURE TO COME TO A CONCLUSION ON THIS NOW, THE SECRETARY FOR ADMINISTRATIVE SERVICES AND INFORMATION, MR ADOLF HSU, SAID TODAY (FRIDAY).

SPEAKING AT A LUNCHEON MEETING OF THE CITY LIONS CLUB, MR HSU SAID THAT WITH A VERY HIGH DENSITY OF POPULATION AND THE GENERAL AVAILABILITY OF THE COMMON ANTENNA BROADCASTING DISTRIBUTION SYSTEMS, HONG KONG WAS IN A FAVOURABLE POSITION TO DEVELOP CABLE TV IN COMPARISON WITH MOST OVERSEAS COUNTRIES.

+THOUGH THE CAPITAL COST OF LAYING OUT A CABLE SYSTEM HERE SHOULD BE CONSIDERABLY LOWER THAN IN WESTERN CITIES, THE RECURRENT COST OF OPERATING CABLE TV SERVICES MAY BE MORE EXPENSIVE BECAUSE THERE IS VIRTUALLY NO SUPPLY OF CANTONESE TV PROGRAMMES IN THE INTERNATIONAL MARKET AND CABLE TV OPERATORS WILL HAVE TO PRODUCE A LOT OF PROGRAMMES LOCALLY, HE POINTED OUT.

+IF, HOWEVER, IT IS DECIDED THAT MORE THAN ONE LICENCE SHOULD BE ISSUED, THERE ARE A NUMBER OF POSSIBLE ARRANGEMENTS WHICH PROVIDE FOR THE CO-EXISTENCE OF MORE THAN ONE CABLE OPERATOR IN HONG KONG,+ HE SAID.

HE NOTED THAT DIFFERENT CABLE NETWORKS. OPERATED BY THE DIFFERENT LICENSEES IN SPECIFIC GEOGRAPHICAL AREAS, COULD BE LINKED UP TO FORM A REGIONAL SYSTEM SO THAT AT A MARGINAL ADDITIONAL FEE, CONSUMERS WOULD HAVE ACCESS TO PROGRAMMES TRANSMITTED BY ANOTHER NETWORK.

+ ANOTHER POSSIBLE ARRANGEMENT IS THAT THERE WILL BE ONLY ONE CABLE PROVIDER FOR THE WHOLE TERRITORY BUT MORE THAN ONE PROGRAMME PROVIDER, + HE SAID.

+SUCH AN ARRANGEMENT WOULD BE FAVOURED ONLY IF THE CABLE PROVIDER CAN WIRE UP THE TERRITORY IN A SPEEDY AND EFFICIENT MANNER AND A SCHEME DEVISED TO ENSURE EQUITABLE ACCESS TO THE CABLE NETWORK BY ANY PROGRAMME PROVIDER APPROVED BY THE GOVERNMENT,+ HE ADDED.

ON THE LICENCE PERIOD, MR HSU SAID THIS WOULD VERY MUCH DEPEND ON THE AMOUNT OF INVESTMENT INVOLVED AND THE TYPE OF TECHNOLOGY THAT WOULD BE USED IN LAYING OUT THE CABLE NETWORK.

THE

+ IN VERY BROAD TERMS. THERE ARE TWO TYPES OF TECHNOLOGY. FIRST ONE IS A TREE AND BRANCH NETWORK WHICH CARRIES PROGRAMMES IN TRUNK CABLE FROM THE PROGRAMME SOURCE AND DISTRIBUTES THEM BY BRANCH CABLES TO THE SUBSCRIBERS.

/+A SECOND