TNAG-0350-FCO40-386-Future-of-broadcasting-in-Hong-Kong-1972 — Page 143

CONFIDENTIAL

XCC(72)14

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considers it safe to assume that up to only six services can be operated. It therefore proposes (recommendation 32) the adoption of a frequency plan allowing for six services.

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Adoption of this plan will necessitate a re-allocation of TVB's frequencies which is estimated to cost roughly $600,000 - $650,000. It is preferable, however, to make the change at this stage rather than to establish the second station in Band V and to re-allocate the frequencies of both TVB and the second station when a third station is licensed. It would not be equitable to require either TVB or the second licensee to incur the cost and it is proposed that, subject to the approval of the Finance Com- mittee, TVB should be re-imbursed by the Government (recommendation 33). In this connection it is considered that the royalty received by Gov- ernment in return for the allocation of scarce resources can be used towards the orderly development of those resources.

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If serious difficulties over transmitter and translator sites and reception problems are to be avoided it is necessary for all licensees to share TVB's existing sites. Recommendations 34 - 42 provide for shared sites and the establishment of transmitting facilities.

Renewal of TVB's licence

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TVB's performance is examined in Chapter 12 of the report where the working party, having regard to its concept of the pur- poses of television in Hong Kong (paragraph 6 above), considers that a satisfactory service has been provided. Two areas, however, are found in which TVB has not fulfilled its obligations. Firstly TVB is in breach of regulation 3 of the Television (Standards of Programmes) Regulations which concerns the proportion of British and Commonwealth material broadcast. This matter is examined in paragraphs 229 231 of the report and in consequence the working party recommends a modification of reg- ulation 3 (recommendation 49) and calls for an improvement in the position. Secondly TVB is technically in breach of the transmission coverage re- quirements. This aspect is covered in paragraphs 116-119 of the report and in recommendation 19 which proposes that the breach be tolerated for the time being. The working party also recommends that regular tests of the quality of transmissions should be carried out in the future and that the Telecommunications Authority should consider whether TVB's licence should be amended to include further technical conditions (recommendations 50 - 51).

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Subject to amendments resulting from new conditions pro- posed in the report it is recommended that TVB's licence should be re- newed (recommendation 52). Under section 6(b)(ii) of the Television Ordi- nance the Television Advisory Board is also required to submit recom- mendations to the Governor in Council on the renewal of licences and has advised renewal of TVB's licence subject to the new terms and conditions recommended by the working party.

CONFIDENTIAL