This press release summarises the Communications Authority (“CA”)’s decisions at its 29th meeting in March 2014:
SmarTone Mobile Communications Limited (“SmarTone”) was Found in Breach of Section 7M of the Telecommunications Ordinance (“TO”)
The CA considered a complaint against SmarTone for breaching section 7M of the TO. The complainant alleged that various representations made by SmarTone on a dedicated webpage of its company website from July 2012 in relation to the network comparison tests between its 3G network and other 3G and 4G networks in Hong Kong were misleading or deceptive, thereby contravening section 7M of the TO. Having considered the findings of the investigation conducted by the Office of the Communications Authority and representations made by SmarTone, the CA was of the view that SmarTone had engaged in misleading or deceptive conduct in breach of section 7M of the TO. The CA concluded that a financial penalty of HK$150,000 to be imposed on SmarTone was proportionate and reasonable in relation to the breach concerned. For details, please refer to the CA’s Decision which is published on the CA’s website.
Breach of Regulatory Requirements by Television Broadcasts Limited (“TVB”)
The CA decided that TVB was in breach of –
| (a) | section 11(1) of Schedule 4 to the Broadcasting Ordinance (Cap. 562) (“BO”) in relation to the aggregate advertising time in the clock hour 5:00 p.m. – 6:00 p.m. on 5 December 2013 on iNews Channel which exceeded the statutory limit of 10 minutes by 3 minutes; and |
| (b) | Condition 4 of the First Schedule to its domestic free television programme service licence in relation to the duration of the news bulletin broadcast on Pearl Channel on 18 December 2013 at 11:40 p.m. which fell short of the requirement of 15 minutes as stipulated in its licence by 57 seconds. |
Regarding the non-compliance with the statutory advertising time limit, the CA considered that the lapse was unintentional and was caused by the long duration of a live programme which resulted in a postponement of the advertising materials that followed. For the shortfall of the programme duration of the news bulletin, the CA noted that the lapse was mainly caused by a programming bug in the new software system used for broadcasting the programme, and the presentation and comprehensiveness of the news bulletin had not been affected by the under-run of 57 seconds. Taking into account that the lapses were genuine cases of unintentional oversight, and that TVB took the initiative to report the lapses and pledged to step up precautionary measures to prevent similar lapses from occurrence in future, the CA decided that TVB should, in each case, be advised to observe the relevant requirement more closely.
Breach of Regulatory Requirements by NXTV Asia, Limited (“NXTV”)
The CA decided that NXTV was in breach of –
| (a) | Condition 7.1 of its Type B Other Licensable Television Programme Service Licence (“the Licence”), section 13 of Schedule 4 to the BO and sections 3(a) and 5(1)(b) of Schedule 4 to the Broadcasting (Licence Fees) Regulation (Cap. 562A) for its failure to pay the annual fixed licence fee for the licence year 2013/14 (“Licence Year”); |
| (b) | Condition 9.2 of the Licence for its failure to submit the auditor’s certificate or statutory declaration stating the names, addresses and number of hotels to which its service is provided (“AC or SD”) for the Licence Year; and |
| (c) | sections 21(2) and 39(1) of the BO for its failure to submit the annual statutory declaration on compliance with the fit and proper person requirement and annual return showing the names and places of residence of the directors and principal officers of NXTV (“Annual Returns”) for the year of 2013. |
Despite repeated reminders and warning letters, NXTV still has not paid the fixed licence fee and submitted the AC or SD for the Licence Year and the Annual Returns for the year of 2013 by the stipulated deadlines. The CA considered that NXTV’s failure to comply with the above-mentioned regulatory requirements was a clear breach of the relevant statutory provisions and licence conditions.
In view of the severity, nature and duration of the contraventions, the CA decided that a financial penalty of HK$50,000 should be imposed on NXTV for the breaches. The CA further decided that NXTV should be directed under section 24(1) of the BO to pay the fixed licence fee and submit the AC or SD and Annual Returns by 1 May 2014, and any failure to do so will lead to the imposition of heavier sanction by the CA.
Communications Authority
Secretariat
1 April 2014