TNAG-1555-FCO40-2119-Broadcasting-in-Hong-Kong-1986 — Page 318

For information

(11.3.86)

CONFIDENTIAL

Annex A

120

NOTE FOR EXECUTIVE COUNCIL

XCCI (86)17 Əl Copy No...

CABLE TELEVISION SERVICE

Introduction

The purpose of this note is to inform members that submitted an Hong Kong Telephone Company Ltd: (Telco) has application for a licence to run a cable television service in Hong Kong.

The Proposal

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2. HK Telco proposes to establish a subsidiary, of which they would be the majority shareholder, to run a cable television service. Telco is seeking an exclusive 25 years licence to provide both the cable infrastructure and the programming. The company intends to test the market initially with an experiment based at Tai Koo Shing commencing in early 1987 and lasting between one and two years. If successful the scheme would be expanded to cover the major urban and new town** areas. Funding would be partially by subscription ($119 per month with an initial fee of $400) and partially by advertising, and the take up rate is estimated at 50,000 households per annum

3

The company intends to

to provide 14 channels, 5 of these being the existing off-air services plus Teledifusas de Macau, 2 being American satellite transmissions, 3 being locally assembled music and film channels and the remainder including channels for government and community use.

Implications

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being

Detailed implications of the proposal are examined by working

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within the administration. Certain implications are however immediately clear: -

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(a) the question of an exclusive licence. There is no reason to assume that a monopoly should be permitted either of the cable network itself programmes;

or the

provision

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CONFIDENTIAL

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