XN000022-1989-08-01 — Page 2

TUESDAY, AUGUST 1. 1989

HK CABLE COMMUNICATIONS SELECTED TO OPERATE CABLE TV

KONG CABLE LICENSEE TO KONG IN THE NEXT

SELECTED HAS

HONG THE EXECUTIVE COUNCIL COMMUNICATIONS LTD (HKCC) AS THE FUTURE CABLE TELEVISION PROVIDE A MAJOR NEW ENTERTAINMENT SERVICE IN HONG FEW YEARS.

LOCAL AND FOREIGN INTERESTS HKCC IS A CONSORTIUM MADE UP OF

SUN HUNG ΚΑΙ ARE: THE WHARF HOLDINGS LTD, AND THE PRINCIPALS

(HONG KONG) PROPERTIES LTD, U.S. WEST INC, CODITEL AND SHAW BROTHERS LTD. SIXTY-FIVE PER CENT OF THE CONSORTIUM'S SHARES ARE HELD BY INTERESTS.

PRESS CONFERENCE

LOCAL

THE (TUESDAY), TODAY ANNOUNCING THIS AT A

TSAO. SECRETARY FOR ADMINISTRATIVE SERVICES AND INFORMATION, MR PETER

BE WOULD

BY FAR THE ON COMPLETION, SAID THAT THE ENTIRE SCHEME, BIGGEST SINGLE CABLE TELEVISION FRANCHISE IN THE WORLD.

"THE

FOR TWO HONG A

COMPANY WILL BE INVITED TO APPLY FORMALLY LICENCES: ONE TO ESTABLISH A CABLE TELEVISION NETWORK THROUGHOUT

TO OTHER KONG, KOWLOON AND THE NEW TERRITORIES, AND THE CABLE TELEVISION BROADCASTING SERVICE.

OPERATE

AND

"HKCC WILL NEED TO INVEST 34 BILLION TO BUILD THIS SYSTEM,

UP то A TO GUARANTEE THE PARTNERS IN THE CONSORTIUM HAVE PROMISED

NO SMALL SIGNIFICANCE MAXIMUM LEVEL OF $5.5 BILLION. THIS IS OF HONG KONG," MR TSAO SAID.

HE SAID HKCC HAD UNDERTAKEN TO BUILD UP THEIR NETWORK SO AS PASS THE GREAT MAJORITY OF HOMES IN THE TERRITORY BY 1995.

ΤΟ

ΤΟ

AND THEIR "THEY WILL START THEIR BROADCASTING SERVICE IN 1991

WILL ENJOY AN EXCLUSIVE LICENCE WILL EXTEND TO THE YEAR 2005. THEY

FROM THE START OF THE CABLE BROADCASTING FRANCHISE FOR SIX BROADCASTING SERVICE," HE POINTED OUT.

YEARS

PACKAGE

MR

OF SERVICE,

TSAO SAID: OUTLINING THE PROPOSED

15 CHANNELS FROM 1991, "HKCC'S MOST BASIC SERVICE WILL CARRY ABOUT INCLUDING FILMS, EDUCATIONAL AND SPECIAL INTEREST PROGRAMMING.

"FOR THIS THEY WILL CHARGE A ONE-OFF INSTALLATION FEE PER TV OUTLET, AND A MONTHLY SUBSCRIPTION OF $120 PER OUTLET."

OF $240

THAT

MR TSAO NOTED THAT THE COMPANY HAD UNDERTAKEN TO MAINTAIN

EXCEED $285 FOR INSTALLATION FEE IN THE FIRST TWO YEARS AND NOT TO AND $143 A MONTH FOR SUBSCRIPTION IN THE THIRD YEAR,

LARGE DISCOUNTS SHOULD ALSO BE AVAILABLE TO IN EACH AREA PASSED, HE SAID.

EARLY SUBSCRIBERS

MR TSAO SAID ROYALTY WOULD BE PAID TO BROADCASTING LICENCE.

THE

GOVERNMENT ON

THE

/"THE ROYALTY