TNAG-1779-FCO40-2539-Hong-Kong-international-telecommunications-1988 — Page 26

or information 12.7.88)

CONFIDENTIAL

NOTE FOR EXECUTIVE COUNCIL

XCCI (88) 46

Copy No......3...

TELECOMMUNICATIONS DEVELOPMENT AND CABLE TELEVISION

INTRODUCTION

On 5 July 1988, following consideration of Executive Council memorandum XCC(88)97, the Council advised and the Governor ordered -

(a) that Option A in paragraph 25 of the

memorandum should not be pursued;

(b) that the Council should

should be given a further week to reflect on

on the respective merits of Options B and C before tendering its advice;

(c)

(d)

that when the matter is referred back to the Council, further details should be given of the proposal to grant separate licences to the operator of the network and to the operator of cable television service, and the Council should also be

informed how the two alternative options might be presented; and

that the further submission should also explore the variant on Option C of removing the proposed prohibition on HK Telco holding more than a 5% holding in the cable television licensees.

In addition to the submission called for in (c) and (d), the opportunity has been taken to set out the general position on the Hong Kong Telephone Co. (Telco) providing facilities for the transmission of television signals (paragraphs 14 to 16 below refer).

Licensing of Cable Television

2

L

There are two possible approaches to licensing a cable television operator. The first is to issue a single licence to cover both the cable television broadcasting service and the network operation; the second is to issue simultaneously one licence to the cable television broadcaster and a separate licence to the network operator. The single licence approach is preferred if the network is exclusively for the broadcasting of cable television. It has the advantage of assuring the close co-operation of the cable television broadcaster and network provider in the

the case where these are two separate companies (i.e. as with the CTHK/Telco proposal).

CONFIDENTIAL