TNAG-1555-FCO40-2119-Broadcasting-in-Hong-Kong-1986 — Page 369

For information

(11.3.86)

CONFIDENTIAL

MKK 3064

RECEIVED IN KECISTRY

13 MAF. 1986

DESK OFFICER

INDEX

PA Broadcarling

PA

PACISTRY

Action Taken

XCCI (86)17 Copy No..

30

NOTE FOR EXECUTIVE COUNCIL

CABLE TELEVISION SERVICE

Introduction

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

The Proposal

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 year 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 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

4

being

Detailed implications of the proposal are examined by a working group within the administration. Certain implications are however immediately clear: -

(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 or

provision of programmes;

the

CONFIDENTIAL

3