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The following is issued on behalf of the Broadcasting Authority:
At its meeting in January 2009, the Broadcasting Authority (BA) granted TVB Pay Vision Limited (TVBPV) a new non-domestic television programme service licence (New Non-domestic TV Licence) to provide satellite television targeting audience outside Hong Kong. The licence is valid for 12 years from January 22, 2009 to January 21, 2021, inclusive. At the same time, the BA accepted the surrender of the existing deemed non-domestic television programme service licence (Deemed Non-domestic TV Licence) of TVBPV (previously known as "Galaxy Satellite Broadcasting Limited") with effect from January 22 pursuant to Section 9 of Schedule 8 to the Broadcasting Ordinance (Cap.562). Details of the case are contained in Appendix.
The BA noted that in December 2008 the Commissioner for Television and Entertainment Licensing (CTEL) dealt with 94 cases (167 complaints) under her delegated authority, of which eight cases (10 complaints) were classified as minor breaches and 64 cases (122 complaints) were unsubstantiated. The remaining 22 cases (35 complaints) were held to be outside the ambit of the Broadcasting Authority Ordinance. The monthly complaints figures dealt with by CTEL since January 2008 are shown in Figure 1. A chart showing the respective natures of the unsubstantiated complaints in December 2008 is at Figure 2. Please visit the BA website: (www.hkba.hk) for further information of the complaints.
Appendix
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Surrender of the Deemed Non-domestic Television Programme Service Licence and Grant of a New Non-domestic Television Programme Service Licence to TVB Pay Vision Limited (TVBPV)
Background:
In 1998, TVBPV (previously known as "Galaxy Satellite Broadcasting Limited") was granted by the Chief Executive in Council (CE in C) a satellite uplink and downlink licence under the Telecommunications Ordinance (Cap.106). At that time, there were only two licensed operators (including TVBPV), providing satellite broadcasting services with 35 satellite television channels in total. In view of the dominant position of Television Broadcasts Limited (TVB) in the local television market and to minimise the possible impact of TVB exercising control of TVBPV in the satellite TV market, the CE in C imposed a set of special conditions under Condition 27 of the satellite uplink and downlink licence of TVBPV (Condition 27) to keep the two companies at arm's length. In parallel, the BA imposed a similar set of conditions on TVB to mirror Condition 27 vide its direction dated July 21, 1998 (the Direction).
Upon the enactment of the Broadcasting Ordinance (BO) in 2000, the category of "satellite uplink and downlink licence" is replaced by a new one known as "non-domestic television programme service licence". The policy intention of enacting the BO is to ensure that television programme services are regulated according to their pervasiveness rather than transmission technology. In this connection, non-domestic television programme services are those not mainly targetting Hong Kong audience and are therefore subject to relatively simple and light-touched licensing and regulatory requirements. This ensures that Hong Kong can continue to be a regional broadcasting hub from which international broadcasters choose to have their headquarters to produce and uplink their broadcasts. As a transitional arrangement, incumbent satellite uplink and downlink licences were deemed as non-domestic television programme service licences under the BO, whereas licensees may, on its own volition, surrender the deemed licence in return for a new non-domestic television programme service licence pursuant to Section 9 of Schedule 8 to the BO.
In November 2008, TVBPV applied to the BA for a new non-domestic television programme service licence and the surrender of its deemed licence at the same time.
Factors considered by the BA:
The BA notes that the non-domestic television market in Hong Kong has evolved since 1998. The number of satellite television channels has multiplied to nearly two hundred over the years and the satellite television industry is increasingly competitive with 17 non-domestic television programme service licensees, and it would be much more difficult for TVB to leverage its position in non-domestic television market. The BA also notes that TVB has restructured its interest in TVBPV. TVB group's voting control of TVBPV has been reduced to less than 15% in January 2008, and no directors or principal officers of the TVB group have held the same positions in TVBPV since February 2008. TVB no longer exercises control over TVBPV within the meaning of the BO.
Against the above background, the BA considers that there is no justifiable reason to continue to impose any restrictions on the transactions between TVBPV and TVB in exploiting the satellite television market in the Asia-Pacific region and elsewhere. The BA therefore approves TVBPV's proposed surrender of the deemed licence and grants TVBPV a new non-domestic television programme service licence, applying only standard licence conditions but no new condition similar to the Condition 27. In parallel, the BA withdraws the Direction to TVB following the grant of the new licence to TVBPV on the same date. Nevertheless, both licensees shall continue to be subject to the competition provisions under the BO which prohibit licensees' possible anti-competitive conducts in the relevant television markets.
Ends/Thursday, January 29, 2009
Issued at HKT 16:00
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