Pay TV loses monopoly in shake-up plan
More pay television channels and more competition in the telecommunications sector were proposed in a government review yesterday.
Cable TV companies will be allowed to provide phone services and phone companies allowed to produce and transmit TV programmes.
The Government proposed that pay television and video-on-demand markets be opened up with unlimited new licences.
Wharf Cable had enjoyed a monopoly for five years and there was no justification for extending it, said Deputy Secretary for Information Technology and Broadcasting Rita Lau Ng Wai-lun.
But she said the Government could not grant a third licence for free TV because of limited transmission space.
Freeing up pay TV would speed up technology transfer, attract investment and stimulate the growth of related industries, said Secretary for Information Technology and Broadcasting Kwong Ki-chi.
'This will enhance Hong Kong's position as a leading broadcasting hub in the region,' he said.
Democrat Fred Li Wah-ming said the Government should also liberalise the free-to-air market.
'With the present economic situation, the public are more inclined to watch free TV. I'd like to see more competition there. You can't say because a station is suffering a huge deficit that you have to protect it.' The Liberal Party's Howard Young urged the Government to help new companies compete against dominant players.
Officials have yet to decide whether to lift the ban on allowing more fixed network telecommunications licences. The three new operators - New T & T, New World Telephone and Hutchison - which have won less than two per cent of the market, have asked for the ban to be extended to 2001 or 2002.
The Government will decide on the proposals by the end of this year.
KEY PROPOSALS TELEVISION Open up pay TV and video-on-demand markets to com petition. No limit on licences.
Allow Wharf Cable and other networks to provide telecommunications.
Require Wharf Cable to open up network to other TV and telecommunications providers.
Allow telephone licensees to convey and provide TV programmes, including pay TV and video-on-demand.
Mandate interconnection between telecommunications and broadcasting networks.
Start trials of digital and high definition TV.
Encourage broadcasters to apply digital technology.
Abolish subscription and advertising royalties for TV and radio, costing the Government $300 million.
Revamp TV regulations.
TELECOMMUNICATIONS Operators' investment plans to be studied before a decision on whether to issue more licences.
No limit on licences to be issued next year for telecommunications services over facilities owned by others, or on licences in 2000 for those providing the facilities.
