TNAG-1989-FCO40-2822-Hong-Kong-Telecommunications-(Amendment)-Ordinance-1989-(No.-1989 — Page 6

'Radio

radio licence should provide for it s int roduction. dat a' is a term used to describe auxiliary information carried in conjunction with a radio transmission signal. This data has potentially many useful applications, and can, for example, be used to select particular radio channels automatically or to re-tune to t he same channel broadcasting on frequencies in different geographical areas.

different

Schedule C: Licence Period, Mid-term Review and Expiration (Recommendations 7-10)

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The proposed period of validity of the radio licence namely twelve years and the requirement for a mid-term review mirror the conditions applicable to the wireless television licences.

Schedule D : Licence Revocation Suspension, Financial Penalties and Appeal (Recommendations 11-16)

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The provision for revocation in the existing radio licence is considered too ext reme.

The new provisions regarding revocation and suspension follow closely the relevant provisions in the Television Ordinance, as amended. Similarly to the television licensees, CRHK will be provided with a channel of appeal to the this Council against decisions of the BA.

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As regards the level of financial penalties for radio, account has been taken of the lower levels of turnover and advertising receipts achievable by radio broadcasters as opposed to television broadcasters.

Schedule E : Scope of Business, Disqualified Persons Corporate Structure Foreign Ownership, Royalty and Licence Fee (Recommendations 17-24)

Scope of business and corporate structure

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In considering the statutory requirement in the Television Ordinance that the only business carried on by the commercial television licensees shall be to establish and operate a television broadcasting service, the BRB took the view that the proper organisation and supervision of the broadcasting industry required that this statutory requirement be observed, and that the requirement should be applicable to both television and radio licensees. The BRB also proposed that a licensee should not be held by another company and should only be given permission to establish subsidiaries in exceptional circumstances. The BRB's recommendations were accepted by the BA and the Administration and were subsequent ly enacted.