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C
D
CTHK informed us then that a lengthy pilot scheme would not serve their objectives for cable TV. They claimed that the service had to start with a full spectrum of programmes to appeal to the widest audience within as short a time as possible.
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On 17 November 1986, CTHK, however, requested again to conduct, on a no-commitment basis, a pilot scheme covering Taikoo Shing and various first class hotels (Annex C).
In a further submission on 16 December 1986, CTHK argued that the pilot scheme would help the company formulate plans to provide cable TV service in Hong Kong. They also argued that the community would benefit in terms of feedback on what services and programmes it favours and the prices it could afford.
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Consideration of CTHK's application was held in abeyance pending a decision on the telecommunications aspects of cable TV, originally planned for submission to the Council in early 1987. We felt that, if we decided to develop a second network for cable TV, any pilot scheme should be introduced on that basis to test its different technical and practical aspects.
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The news of CTHK's application for а pilot scheme has, however, provoked strong reactions from another interested party, Hutchison CableVision. A copy of the company's letter, dated 27 January 1987, is at Annex D.
Comments
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Given the Executive Council's decision on 7 July 1987 to engage independent consultants to advise whether there should be a second public telecommunication network for cable television and services outside Telco's exclusive franchise, it would be advisable to wait for the consultants' recommendations before totally dismissing the value of a pilot scheme. However, for the various considerations below, we consider that a pilot scheme cannot be supported now.
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We have further considered the benefits of
the benefits of a pilot scheme. Apart from the possibility of testing the different technical aspects of a second network, we doubt its usefulness. First, a pilot scheme covering just Taikoo Shing and some hotels will not provide representative information on public demand for the service. Second, because of the high cost of
of programme production, it would not provide the full range of services and programmes
of a a fully developed cable
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Private notes are available after approval.