Communications Authority Press Release (August)

This press release summarises the Communications Authority ("CA")'s decisions following its 44th meeting in August 2015:

Amendments to the Network and Service Rollout Requirement under the Unified Carrier Licence of 21 ViaNet Group Limited ("21 Vianet")

The CA approved the application from 21 Vianet, a carrier licensee under the Telecommunications Ordinance (Cap. 106), for amendments to the network and service rollout requirement under its Unified Carrier Licence ("Licence") in relation to its provision of local fixed telecommunications services in Hong Kong.  Under the amended network and service rollout requirement, 21 Vianet is required to provide coverage to a minimum of 3 000 village houses by 29 March 2017 and cumulatively a minimum of 4 000 village houses by 29 March 2018, which include those located in some villages specified by the CA. 

In February 2012, 21 Vianet successfully bid for 30 MHz of unpaired spectrum in the 2.3 GHz band, and was subsequently granted the Licence by the CA for the provision of local fixed telecommunications services.  Schedule 8 of the Licence requires 21 Vianet to provide, on or before 29 March 2017 and to maintain thereafter, coverage of the network and service to a minimum of 200 commercial and/or residential buildings in Hong Kong.  The coverage requirement is guaranteed by a performance bond as specified in Schedule 9 of the Licence.  In July 2015, 21 Vianet submitted an application to the CA for amendments to the network and service rollout requirement, in order to enable it to implement its plan to provide wireless fixed broadband service targeting village houses in the rural and remote areas. 

Having duly considered 21 Vianet's application and representations, the CA was satisfied that the proposed service was technically sound and practically feasible, was in the public interest in bringing benefits to service users in village houses in rural and remote areas in Hong Kong, in terms of better coverage and higher service speed, greater competition and better consumer choices.  The CA also considered that the amended network and service rollout requirement was commensurate with and no less challenging than the existing requirement in terms of the time and cost involved.

On the basis of the above, the CA approved 21 Vianet's application for amendments to the network and service rollout requirement. 

Changes in Shareholding Structure of Digital Broadcasting Corporation Hong Kong Limited ("DBC")

The CA approved the application for changes in the shareholding structure of DBC arising from the proposed transfer of 0.4% of shares in DBC from Professor Arthur Li Kwok-cheung, Mr David Li Kwok-po and Mr Allan Wong Chi-yun to the major shareholder of DBC, Mr Wong Cho-bau ("Mr Wong").  Upon completion of the proposed transfer of shares, DBC would be wholly owned by Mr Wong.  The changes in the shareholding structure of DBC took effect upon completion of the relevant transaction on 10 August  2015.

In approving the application, the CA was satisfied that the shareholding changes would not give rise to regulatory concerns and that DBC would continue to comply with various applicable regulatory requirements under the Telecommunications Ordinance (Cap. 106) and its licence and be able to honour the investment and programming commitments it had made under its sound broadcasting licence upon completion of the shareholding changes.

Broadcast Complaints

The CA also considered three complaint cases in respect of the licensees' non-compliance with the codes of practice on television programme and advertising standards -

(a) complaints against the television programme "The Chef's Choice" (天天飲食) broadcast on the CCTV-1 Channel of Asia Television Limited ("ATV") on 2, 7, 16 and 23 October 2014. The CA decided that ATV should be strongly advised to observe more closely the relevant provisions in the Generic Code of Practice on Television Advertising Standards;

(b) a complaint against the television programme "News Roundup" (晚間新聞) broadcast on the Jade Channel of Television Broadcasts Limited ("TVB") on 14 January 2015. The CA decided that TVB should be strongly advised to observe more closely the relevant provisions in the Generic Code of Practice on Television Programme Standards ("TV Programme Code"); and

(c) a complaint against the television programme "Scoop" (東張西望) broadcast on the Jade Channel of TVB on 15 September 2014. The CA decided that TVB should be advised to observe more closely the relevant provision in the TV Programme Code.

Details of the above cases are at the Appendix.

Communications Authority
Secretariat

18 August 2015

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