XN000022-1994-07-06 — Page 15

6

WEDNESDAY, JULY 6, 1994

THESE

AND

THE

THAT

TO

ΤΟ HAD ΤΟ

HAND A

THE

BE

ITS

IT

FIRST

THE TIME OF OF COURSE, WERE DEVISED AT REQUIREMENTS, DRAFTING WHARF

LICENCE, CABLE'S

WERE PREDICATED UPON LIKELIHOOD OF SPARE

ABOVE CHANNELS BEING AVAILABLE OVER AND NEEDED BY WHARF CABLE FOR ITS OWN SERVICE. CARE WAS TAKEN TO ENSURE

IMPOSITION THAT THE

DID NOT COMPROMISE WHARF CABLE'S ABILITY TO TO SECURE PROVIDE A COMMERCIALLY ATTRACTIVE CHANNEL LINE-UP, VITAL SUFFICIENTLY HIGH

NECESSARY PENETRATION RATES WHICH IN TURN ARE

ONE BRING

SO WHILE ON THE THE LICENSEE TO ECONOMIC VIABILITY. THE LICENCE

AMBITIOUS ROLLOUT SPECIFIED

TARGETS ATTACHED PERFORMANCE BOND TO HOLD THE LICENSEE TO ITS COMMITMENTS, WE BEAR IN MIND ON THE OTHER, THE TECHNICAL LIMITATIONS ARISING FROM

WOULD AS MEMBERS HAVE MENTIONED, THAT WHARF CABLE FACT, DISTRIBUTING ITS SERVICES THROUGH A MICROWAVE SYSTEM WHICH BY NATURE

NETWORK HAS LIMITED CAPACITY AS COMPARED WITH THE FIBRE OPTIC TO WHICH WHARF CABLE WOULD MOVE IN DUE COURSE. FOR THESE REASONS, WAS CLEAR FROM THE OUTSET THAT WHARF CABLE WOULD REALISTICALLY NOT ABLE TO RELEASE THE GOVERNMENT CHANNELS UNTIL IT SWITCHED OVER TO OPTIC FIBRE NETWORK. THE TARGET DATE SET IN THE

FOR LICENCE SWITCH-OVER IS 1998, BUT I AM GLAD TO SAY THAT THE LATEST INDICATIONS ARE

TRANSFER THAT WHARF CABLE IS WELL AHEAD OF THIS SCHEDULE AND THE TO OPTIC FIBRE WILL BE SUFFICIENTLY WELL ADVANCED BY ABOUT MID-1996 TO MAKE IT TECHNICALLY FEASIBLE TO INTRODUCE A SERVICE ON THE PUBLIC BROADCAST CHANNELS TO A GOOD PROPORTION OF HOMES IN THE SECOND HALF OF THAT YEAR.

IT

BE

ITS

THIS

PUT

WOULD BE AS WELL FOR ME TO EXPLAIN WHY THE GOVERNMENT THE RELEVANT CONDITION INTO THE WHARF CABLE LICENCE

FIRST IN THE PLACE. WHEN DEVISING THE LICENCE FRAMEWORK BACK IN 1992 WE HAD NO PRECEDENT IN HONG KONG TO WORK ON.

FROM WE HAD TO DRAW ON EXPERIENCE ELSEWHERE, NOTABLY FROM THE USA. THE NORMAL PRACTICE THERE WHEN ISSUING CABLE FRANCHISES, IS FOR THE MUNICIPALITY TO REQUIRE THE FRANCHISEE

SUBSCRIBER, TO OPEN UP ACCESS CHANNELS, OFTEN FREE TO THE IN RETURN FOR ALLOWING THE FRANCHISEE TO USE COMMERCIAL AND PUBLIC TO BROADCASTING OFF AIR CHANNELS FREE OF CHARGE. THESE CHANNELS ARE PROVIDE EDUCATIONAL ACCESS, GOVERNMENT ACCESS AND PUBLIC ACCESS.

REQUIREMENTS CONSIDERED SIMILAR

FOR THE WHARF CABLE LICENCE, BECAUSE OF UNCERTAINTIES AT THE TIME OF THE TENDERING EXERCISE AS THE ECONOMIC VIABILITY OF A CABLE FRANCHISE IN HONG KONG, REQUIREMENT WAS MODIFIED TO A LESS BURDENSOME IMPOSITION TO HAND FREE OF CHARGE A NUMBER OF CHANNELS FOR GOVERNMENT USE. WE BELIEVED THAT THIS WAS A GOOD COMPROMISE BEARING IN MIND THE LARGE CHANNEL CAPACITY THAT THE FRANCHISEE WOULD HAVE UPON IMPLEMENTATION OPTIC FIBRE NETWORK.

WE

BUT

TO

THE BACK

OF ITS

POSSIBLE USES FOR WHARF CABLE CHANNELS

AT THE TIME THAT THE RELEVANT LICENCE CONDITION WAS FIRST SIGNALLED TO POTENTIAL TENDERERS FOR THE CABLE TV FRANCHISE AND THEN AGREED WITH THE SUCCESSFUL BIDDER, WE DID NOT HAVE VERY SPECIFIC IDEAS ABOUT HOW THE GOVERNMENT CHANNEL WOULD BE USED. THIS WAS NOT NECESSARY AT THAT STAGE GIVEN THE TIME IN HAND AND BEARING IN MIND THE MANY OTHER HIGHER PRIORITY TASKS WHICH HAD TO BE ACCOMPLISHED SIMPLY IN ORDER TO GET WHARF CABLE ON AIR WITHIN THE VERY TIGHT TIME FRAME THAT WE HAD SET OURSELVES. NONETHELESS, WE HAVE FOR SOME TIME BEEN CONDUCTING INITIAL RESEARCH INTO WHAT HAS HAPPENED IN OTHER COUNTRIES WITH A VIEW TO DECIDING WHAT MIGHT BE SUITABLE FOR HONG KONG. WE HAVE CONCLUDED THAT THERE ARE TWO MAIN WAYS IN WHICH THESE CHANNELS

COULD

BE USED.

/THE FIRST