XN000022-1994-12-15 — Page 8

- 7 -

(b) No further changes should be made to the royalty payments charged to ATV and TVB in the light of the prevailing competitive conditions;

(c) That upon application to the Governor-in- Council and subject to approval of the application in the public interest by the Governor-in-Council, a local television broadcasting licensee may acquire any level of interest in a satellite television uplink and downlink licensee; and

(d) The introduction of a legislative provision on free competition and the introduction of full-cost recovery licence fees for broadcasting licensees should be approved in principle.

Speaking at a press conference to give details of the review, Mr So said. the Executive Council had also directed that as part of the review in 1996 on deregulating the broadcasting environment upon the expiry of Wharf Cable's exclusivity period, the Administration should address more thoroughly the question on the future of English language channels on commercial television, that is TVB and ATV.

Following on the changes to the broadcasting operating environment, the Governor-in-Council has given approval in principle to grant a 12-year licence to the Galaxy Uplink Limited, a subsidiary of TVB, to establish and operate ground facilities in Hong Kong to transmit and receive television signals comprising the Galaxy regional satellite broadcasting service.

In giving this approval, the Governor-in-Council has fully considered the benefits that the proposed service will bring to Hong Kong and the region, and has concluded that it would be in the public interest to grant this approval.

Mr So said the Galaxy service would enhance Hong Kong's status as a regional broadcasting centre, widen the choice of programmes to the region, bring in overseas broadcasting expertise to Hong Kong as well as create new jobs locally.

Mr So added that the project would expand the export of Hong Kong produced programmes and emphasised that it was a positive development that Hong Kong's major domestic broadcaster was participating in the new and important field of international satellite broadcasting.