There is a business risk in every new technology venture. Such was the case in the early 1990s when the first pay-television channels on cable went to air. Some people had doubts if a market as small as Hong Kong could sustain such an enterprise when there were already two companies, TVB and ATV, offering free terrestrial channels and only TVB was profitable. Since then, i-Cable and Now TV have become firmly established, while other cable television operators have failed to fly. The same question has now surfaced about the three mobile television licences announced yesterday.
Whoever buys the licences at auction in the latter half of next year and begins broadcasts in 2010, as stipulated by authorities, will be joining a crowded market. Hundreds of television channels are already available through the two terrestrial stations, cable, broadband and satellite. Our city has just 7 million people. Just how many will be interested in watching television on hand-held devices with small screens like mobile phones and MP4 players is anyone's guess. This should not be of concern, though. Market forces must determine demand and, as the i-Cable case proves, it is the business model that is key.
Hong Kong has a chequered television broadcasting history. At one time, TVB and ATV had to compete with one more terrestrial broadcaster, which eventually went down. Still, despite the latter's downfall, ATV has not been able to challenge TVB's dominance. Meanwhile, TVB has failed to turn around its loss-making paid-television operation.
Questions about the financial viability of mobile television are not for the government to answer - its role is to ensure that the conditions are in place for operators to try out new technologies. The government's decision to put the licences up to the highest bidder is the right one. This is the best way to determine the operators. We should not worry about there being no restriction on cross-media ownership of the licences; having mobile television content may not prove an advantage to whatever other media may be owned.