introduction of a licensing regime to
control
distribution
of
television signals to two dwellings.
We should
foreign
or more
examine these possibilites in depth as soon as we can. However, given the inevitable length of time required to produce watertight new legislation starting out in a new direction for Hong Kong, this cannot be regarded as
a practical solution to the immediate problem.
"Right of first refusal" until 31 December
1993
This option seeks to grant HKCC the "Right of first refusal" to install SMATV systems for the first three years of its construction period.
The advantage of this option is that the general public would be able to have access to satellite television programmes immediately. То some extent, also, the principle of the desirability of preserving, as far as possible,
market competition is maintained because It will be open to other bidders to install SMATV systems if HKCC decide to waive its right in this respect. The public would also have the choice of
free
satellite or cable television at the end of three years when cable passes their homes. The cabling installed by HKCC would be of the standard required for cable TV, thus eliminating the need for re-wiring once the cable network reaches the building.
However,
as
far
as Hutchison is concerned, this option would be totally unacceptable in that it would put an additional untendered franchise service in the hands of HKCC and make Hutchison totally dependent on a competitor for the delivery of their service.
TV
network
It is also likely that some of HKCC's resources would be diverted to the development of SMATV systems, thereby delaying the cable construction.
A further disadvantage is that this option would entail the design and enforcement of a regulatory framework which would be likely to require substantial financial and staffing resources from the Administration, the setting up of which would be complex and the operation cumbersome.
CONFIDENTIAL
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