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Government may restrict competition for pay-TV

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THE Government may restrict the introduction of competing pay-TV services even after Cable TV's exclusivity period ends in June 1996.

Recreation and Culture Branch (RCB) Secretary James So Yiu-cho suggested that potential rivals to the Wharf-owned Cable TV may have to wait longer than expected before they are allowed to run their own services.

Mr So said 'step by step' deregulation was among the options open to the Government after June 1996. He added that officials would have to examine the effect of unrestricted competition on Cable TV.

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'We may decide that in the first year there should be only one other competitor, in the second another competitor and so on . . . it is something that we will be looking at,' he said.

Officials would have to decide how many rival networks could survive without leading to any drop in the standard of the service to customers, Mr So said.

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His comments, made after an RCB press briefing last week, will surprise industry observers who were expecting a free-for-all once Cable TV's three-year exclusivity period ends.

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