TNAG-1986-FCO40-2819-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 103

12. Lower charges to subscribers (inclusive of all vital equipment)

Para. 5.8.2 of the Guidance Note requires bidders to set out the proposed cost to subscribers and method of fixing charges, including installation and subscription fees to be charged for the basic package, and the length of time the bidders are prepared to abide by these charges before reviewing them.

Fig. 6

Monthly subscription for the basic package (nominal HK$)

1991 1992 1993 1994 1995

HKCC

120 120 143 154 166

HCV

132 141

151

160 173

Initial installation rate (one-time payment) applicable in each year (nominal HK$)

1991 1992 1993 1994 1995

HKCC

240 240 285 308 333

HCV

172 184 197 210

225

1

13.

12.1 We feel that Hong Kong subscribers are more likely to react to a higher initial joining fee and we noted that in this respect, HKCC is more expensive. However, we are informed by the bidders that installation fees will be discounted in the early years. HKCC proposes to discount installation fees at up to 10% in the initial years. HCV said they would discount at 100% for 85% of subscribers in 1991, and for 25% of subscribers by 1993.

12.2. Bearing in mind the superior production values of many offerings in HCV's basic package, we regard HCV's charges as representing significantly better value-for-money.

Minority programming (programming other than for mass audiences)

Fig. 5 shows what is offered by each bidder in terms of minority languages. Language issues aside, within the first six years of service, HKCC is offering 11 channels which can be broadly classed as catering to minority interests. HCV offers ten. HCV offers four such channels in their basic package while HKCC offers two. In general, we consider that HKCC offers slightly better fare for minority interests than HCV.