The Communications Authority ("CA") decided, pursuant to section 32(4)(a) of the Broadcasting Ordinance (Cap. 562) ("BO"), to revoke the other licensable television programme service licence of NXTV ("the Licence") for its failure to pay a financial penalty and variable fee of the Licence for the licence year 2014/2015 by the stipulated deadlines. The revocation of the Licence took effect on 31 July 2015.
NXTV was granted a 12-year licence to provide television programme service to hotel rooms in Hong Kong in April 2005. NXTV is required to -
(a) provide to the CA, on or before the 1st of April of each year, an annual statutory declaration on its compliance with the fit and proper person requirement and an annual return showing the names and places of residence of the directors and principal officers of NXTV ("Annual Returns");
(b) submit to the CA an auditor's certificate or a statutory declaration ("AC or SD") confirming the number of hotels to which its service was provided as at each anniversary date of the commencement date of the Licence within 30 days of each such anniversary;
(c) comply with any directions, orders, or determinations, under the BO which are applicable to it;
(d) pay financial penalty imposed by the CA within 30 days after the date on which a notice on the imposition of financial penalty is served; and
(e) pay annually to the CA a variable fee calculated by multiplying HK$5,400 with the number of hotels to which its service is provided on each anniversary of the effective date of the Licence. The variable fee shall be payable not later than 60 days after each anniversary of the effective date of the Licence.
Section 32(4)(a) of the BO provides that the CA may revoke a licence for failure by the licensee to pay any licence fee owing by the licensee under the BO, or any financial penalty, within 60 days of the due date.
NXTV has failed to pay -
(a) the financial penalty of $100,000 imposed by the CA in September 2014 ("Financial Penalty") for NXTV's failure to -
(i) comply in full with the CA's direction issued on 1 April 2014, requiring NXTV to, among others, submit an AC or SD for the licence year 2013/2014 and the Annual Returns for the year of 2013 by 1 May 2014; and
(ii) submit the AC or SD for the licence year 2014/2015 and the Annual Returns for the year of 2014; and
(b) the variable fee for the licence year 2014/2015 by the stipulated deadline ("Variable Fee").
Despite the repeated demands and reminders, the Financial Penalty and the Variable Fee due and outstanding from NXTV remains unpaid to date.
As a result of NXTV's failure to pay the Financial Penalty and the Variable Fee within 60 days of their respective due dates, the CA was satisfied that there was cause to revoke the Licence under section 32(4)(a) of the BO. As required by section 33(2)(a) of the BO, the CA served on NXTV a notice in writing stating that the revocation of the Licence was under consideration of the CA and the grounds upon which and reasons why the revocation of the Licence was being considered. NXTV was invited to make representations on the proposed revocation. However, it had not responded to the CA's invitation for representations.
Taking into account the severity, nature and duration of NXTV's breaches, the CA reached a final decision that NXTV's Licence should be revoked. Pursuant to section 32(7)(a) of the BO, the revocation of the Licence took effect on 31 July 2015. Details of the case are published on the CA's website.
With effect from the revocation of licence on 31 July 2015, NXTV shall cease to provide any television programme services to hotels in Hong Kong. Under section 5 of the BO, providing broadcasting service without a licence is a criminal offence. NXTV has been reminded of the consequence of providing broadcasting services without a licence. We have also informed all hotels in Hong Kong of the revocation of NXTV's licence.
Communications Authority
Secretariat
1 August 2015