Newly appointed ATV chief executive officer Ricky Wong Wai-kay - also chairman of listed company City Telecom - has dreams of becoming a media tycoon. Taking the helm at the struggling ATV could be an important step towards fulfilling that goal. Appearing in his first press conference as ATV chief, Mr Wong also spoke of his other dream: merging the telecommunications business with television. These were not off-the-cuff remarks. Mr Wong did not join ATV because he wanted to transform the underdog into a strong terrestrial television player to challenge its dominant rival, TVB. Mr Wong joined ATV to fulfil a different - if not a higher - ambition. Teaming up with former PCCW deputy chairman and now ATV executive chairman Linus Cheung Wing-lam, the two seasoned telecom specialists, though novices to broadcasting, want to open up new horizons for traditional television media, probably through convergence with Mr Wong's Hong Kong Broadband, an online TV platform. Mr Wong has side-stepped questions about whether he would pursue a backdoor listing for ATV through merging with Hong Kong Broadband. He only said it would be a lie if he said he wanted to list ATV in the current investment climate. But one should not be surprised to see a back-door listing in the future after Mr Wong sorts out the problems at ATV. Such a plan would suit both Mr Wong and its majority shareholders, the Cha family of Hong Kong Resort Company Limited. Mr Wong has moved into a position that will make him privy to ATV's books and conduct his own due diligence. If ATV is merged with Hong Kong Broadband, new shares may then be issued for the merged entity. This would relieve the need for the Cha family and other shareholders to provide financial backing, while at the same time offer the possibility of receiving new shares. As for Mr Wong, by then he would realise his media baron ambition. It is a win-win solution. There is no real commitment for Mr Wong to take on the ATV challenge. If he succeeds, he would be able to build a new media empire. Should be fail, he can just leave. This is not Mr Wong's first attempt to pursue this dream, having once owned a pay television licence that he later gave up. Mr Wong is expected to ring the changes to find new revenue streams and cut costs. Since his appointment, there have been non-stop rumours of imminent layoffs at ATV. Such fears are not unfounded. Both men have been frank about the dire situation of ATV. Mr Cheung described ATV's losses as astronomical and said reforms should have started five or 10 years ago. Mr Wong could not guarantee they would not cut jobs. Other media reports said the pair did not respond to questions on whether the Cha family would inject more capital into the company. Mr Wong and Mr Cheung sang from the same score, saying ATV should not rely on its shareholders for money, but have to stand on its own. Music to shareholders' ears, but an omen to employees. Without new resources, abrupt and deep cost cutting is likely to result in a further decline of ATV's programme standards. It could become a raw deal for viewers too. Mr Wong said he planned to produce niche programmes to suit middle-class tastes. But a lack of fresh capital will make it almost impossible for ATV to compete with pay television such as NOW, which already has more than 1 million subscribers. But even if ATV finds its niche, it will be violating the principle that free-to-air television should be serving the general public. The government has the responsibility to ensure that the public has access to free, quality television programmes. If Mr Wong's venture fails and no investor can be found, ATV will go under and become yet another thorny issue for the government. We may all recall that over the years many have invested in ATV, trying to make it work, only to cut their losses and exit. ATV is a political time bomb for the government. It should watch developments closely and have a contingency plan in place. Albert Cheng King-hon is a political commentator
