SAR relaxes ownership rules for TV firms

Hong Kong is to abolish restrictions on the foreign ownership of satellite television broadcasting companies based in the SAR in what has been hailed as a long overdue move.

Secretary for Broadcasting, Sports, Recreation and Culture Brian Chau Tak-hay announced yesterday that the 49 per cent cap on foreign ownership of companies permitted to 'uplink' - relay TV signals from a ground station to a satellite - from Hong Kong will be removed.

The change was the most significant in a series of measures Mr Chau unveiled that would 'facilitate the further development of Hong Kong as a regional broadcasting hub'.

The other moves included a flexible licence duration - lasting from as little as a year to 12 years - and a standard licence application regardless of the type of programming.

The Government has also scrapped the rule that the majority of a satellite TV company's directors had to live in Hong Kong.

S. K. Fung, president of the Cable and Satellite Broadcasters Association of Asia, said: 'This is long overdue. It should have been done years ago because up to now the effect of the cap has been to exclude foreign media companies.' Until now Hutchison, which handles Star TV, and TVB have been the only companies holding uplink licences.

Hong Kong-based foreign TV channel providers like Turner Broadcasting Systems (CNN International and TNT & Cartoon Network) have had to go through Hongkong Telecom's earth station at Stanley to send their signals to a satellite for redistribution throughout Asia.