XN000022-1993-01-13 — Page 5

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WEDNESDAY, JANUARY 13, 1993

то FACILITATE EARLY LAUNCH OF A SUBSCRIPTION SERVICE, MR SO SAID THE GOVERNMENT MIGHT NEED TO ISSUE A "TRANSITIONAL" LICENCE BEFORE THE ENACTMENT OF THE BILL.

PROVISION IS INCLUDED IN THE BILL ΤΟ GIVE RETROSPECTIVE VALIDATION то ANY SUCH LICENCE GRANTED AS A "TRANSITIONAL" LICENCE UNDER THE TELECOMMUNICATION ORDINANCE.

ANOTHER OBJECTIVE OF THE BILL IS TO RELAX CERTAIN PROGRAMMING AND ADVERTISING REQUIREMENTS AS WELL AS TO REDUCE THE ROYALTY PAYABLE BY ASIA TELEVISION LTD AND TELEVISION BROADCASTS LTD.

IT ALSO EFFECTS RELAXATION OF SHAREHOLDING

CURRENTLY APPLIED TO TELEVISION LICENSEES.

RESTRICTIONS

UNDER THE BILL, A LICENSEE MAY BE ALLOWED TO OWN OR CONTROL SHARES IN ANY LOCAL OR OVERSEAS COMPANY DIRECTLY CONNECTED WITH BROADCASTING WITHOUT THE EXISTING REQUIREMENT THAT THE LICENSED SHOULD HAVE A CONTROLLING INTEREST IN THOSE COMPANIES,

"THE

WILL BE ON CAPITAL IN

COMPANIES THE SHARE

ONLY RESTRICTION AS REGARDS INVESTMENT IN SUCH A LICENSEE'S HOLDING OF OVER 15 PER CENT OF THOSE 'MAJOR' BROADCASTING COMPANIES SPECIFIED IN THE BILL," MR SO EXPLAINED.

"THIS IS ΤΟ PREVENT ANY ONE COMPANY FROM HAVING TOO MUCH INFLUENCE ON HONG KONG'S BROADCASTING," HE SAID.

ANTI-AVOIDANCE PROVISIONS ARE INCLUDED IN THE BILL TO TARGET CIRCUMVENTION OF THE 15 PER CENT LIMIT BY CONNECTED PERSONS ON SUCH INVESTMENTS, HE ADDED.

OF THE

THE BILL ALSO PROPOSES THAT, WITH THE PRIOR APPROVAL BROADCASTING AUTHORITY, AN OVERSEAS PARTNER OF A LICENSEE MAY HOLD, ACQUIRE OR EXERCISE OVER 10 PER CENT IN AGGREGATE OF THE TOTAL VOTING CONTROL OF THE LICENSEE. THE 49 PER CENT CEILING REMAINS UNTOUCHED HOWEVER.

ONE FINAL OBJECTIVE OF THE BILL IS ΤΟ REMOVE OR MODIFY PROVISIONS IN THE TELEVISION ORDINANCE WHICH ARE UNNECESSARY OR WHICH GIVE THE GOVERNMENT UNLIMITED OR WIDE DISCRETIONARY POWERS IN REGULATING THE TELEVISION INDUSTRY.

DEBATE ON THE BILL WAS ADJOURNED.

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