TNAG-1986-FCO40-2819-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 16

The licensee may apply to allowed to operate satellite facilities for television programming purposes. Any such application would

separately on

its

be considered individual merits. Government is committed to de-regulating the private reception of satellite signals.

land

Grant of of

The licensee must either make use of their existing resources or obtain land

land on the open market. Grants of land by Private Treaty Grant (PTG) to the licensee for major facilities, such as studios etc, will not be considered. However smaller plots of land for the erection of equipment essential for the network may be granted at full market premium.

Legislation

36

There is current ly no established legislative framework under which the CTV broadcaster can be licensed and regulated. Drafting instructions are being prepared for the legislation required to govern the broadcasting and telecommunication aspects of the CTV service. legislation will give the Governor in Council the authority to award the CTV broadcasting and network licences, and will be submitted to Members for approval in due course.

This

FINANCIAL AND STAFFING IMPLICATIONS

37

Based on the

proposals put forward by the two bidders, the consultants have advised that HCV will pay the Government royalty totalling $0.6 billion, in net present value, for the 15-year licence period while HKCC

HKCC will pay $1.5 billion. These represent estimates made by the bidders which may need to be further revised subject to the outcome of probable future negotiations with the preferred bidder. Until detailed proposals have

proposals have been formulated, it is not possible to estimate the revenue yield from the award of the CTV broadcasting licence.

38

With the introduction of cable broadcasting in Hong Kong, the Commissioner for Television and Entertainment Licensing, the Postmaster General and the Director of Highways may require additional staff and equipment for effective monitoring. If this proves to be the case, request s

for additional resources will be

be processed in the usual manner.