XCC(86) 122
A Full Term Licence Renewal
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The Administration has studied the possibility of simply renewing the licences of the existing television stations for a full term. There are several advantages doing so, as follows:
(a)
(b)
(c)
(d)
a full renewal would avoid the substantial land complications which, as noted above, would result from an open tender, and would avoid too the risks associated with a short-term licence extension;
new
it is very possible that any competitive tender exercise would prove to be
be cosmetic only. Having regard to the long lead time before a
station could become financially profitable (paragraphs 56 and 57 below), ATV and TVB may well be
be the only applicants for licences and are certainly the most likely companies to be awarded them at the end of the day;
renewal of the existing licences would provide a welcome element of continuity to the broadcasting industry in a a period of rapid change. A renewal will give the licensees time to adjust to major innovations such as the creation of a Broadcasting Authority as well as probable wide-ranging changes in their licensing conditions. The licensees will also gain time in which to develop new technologies such as multiplex sound, and to prepare themselves for the competition that may arise from other forms of broadcasting such as satellite and cable television; and
a
renewal of licences will reflect the Government's view that the local television
industry is, by and large, healthy and something to be proud of, and will be greatly welcomed by the licensees. It is notable that one of the licensees, ATV, has been struggling to compete for some years, and has only in the last two years, since being taken over by its existing management, visibly improved its performance and begun to make
profit. a
A renewal of ATV's licence would allow the station time to capitalise on its recent gains and may boost confidence and investment in the station.
of
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