Digital broadcasts by 2007 after TVB and ATV given the rights

Digital television broadcasts will start in Hong Kong in 2007 at the latest, after the government yesterday gave Television Broadcasts (TVB) and Asia Television (ATV) the right to beam programmes to viewers using the technology.

The government's decision is likely to disappoint rival pay-TV operators as it had earlier promised to outline plans to tender four digital TV licences by the end of the year.

Secretary for Commerce, Industry and Technology John Tsang Chun-wah defended the policy change on the grounds that Hong Kong's two dominant terrestrial stations could bring a wealth of broadcasting experience to bear when implementing the new technology.

'The decision works best for the citizens,' Mr Tsang said. 'We can learn from TVB and ATV after they commence their services.'

He said the remaining two licences would be awarded after TVB and ATV had rolled out their services. This will give them a head start over competitors.

Rival operators including i-Cable and City Telecom declined to comment yesterday. A Star TV spokeswoman said: 'We need more time to understand the issue to see if there is any business opportunity for us.'