This press release summarises the Communications Authority (“CA”)’s decisions following its 35th meeting in September 2014:
Extension of Deadline for Phoenix U Radio Limited (“Phoenix U Radio”) to Launch Its Third Digital Audio Broadcasting (“DAB”) Channel
The CA approved an extension of deadline for Phoenix U Radio to launch its third sound broadcasting service channel from 19 September 2014 to 19 September 2015, subject to the condition that Phoenix U Radio submits afresh a $1 million performance bond within one month to secure the roll-out of the channel by the new deadline.
Phoenix U Radio’s sound broadcasting licence (“the Licence”) requires it to provide three DAB channels by the specified deadlines. Phoenix U Radio formally launched its first and second channels on 18 January 2012 and 18 October 2012 respectively. Upon Phoenix U Radio’s application, the CA approved that the deadline for launching its third channel be deferred to 19 September 2014 in July 2013. In accordance with the CA’s approval then, Phoenix U Radio submitted a $1 million performance bond to secure the formal launch of its third channel within the approved timeframe.
In August 2014, Phoenix U Radio applied to further extend the deadline for launching its third channel to 19 September 2015. Phoenix U Radio submitted that as the DAB penetration was lower than its expectation, it had difficulty in attracting advertisers. Instead of expending resources on the launch of the third channel, it would focus its resources on the first and second channels to make sure that they provided good service and business potential.
In considering the application, the CA noted that Phoenix U Radio had so far demonstrated commitment to the development of DAB services. It was the first licensee officially launching the service and it launched the second channel earlier than the revised deadline. Phoenix U Radio had also made capital and programming investment in the development of the first two channels and had continued to share the cost with other DAB broadcasters for operating and improving the DAB transmission network. On the basis of the above, the CA approved that the deadline for the launch of Phoenix U Radio’s third channel be deferred to 19 September 2015 on the condition that Phoenix U Radio submits afresh a $1 million performance bond to secure the formal launch of its third channel within the new timeframe.
Extension of Deadline to Provide Electronic Programme Guide (“EPG”) on DAB Services
The CA approved the extension of deadline for the three DAB licensees, namely Digital Broadcasting Corporation Hong Kong Limited, Metro Broadcast Corporation Limited and Phoenix U Radio, to provide an EPG on their DAB services from 21 September 2014 to 21 March 2018, subject to the condition that the DAB licensees implement proposals to efficiently utilise the bitrate capacity assigned for their respective sound broadcasting services by 20 December 2014.
The DAB licensees are required under their licences to co-ordinate with each other and Radio Television Hong Kong to launch EPG by 21 September 2012, showing scheduling information of current and upcoming programmes broadcast by the operators. The deadline was subsequently extended to 21 September 2014 upon approval of the CA in April 2013.
In June 2014, the DAB licensees made an application to the CA for a further extension of the launch of EPG from 21 September 2014 to 21 September 2015, and for further extensions subject to annual reviews of the market condition. The licensees submitted that the market condition for EPG remained unfavourable owing to the low availability of DAB+ radio with EPG-enabled features in both local and overseas markets. Besides, their focus in the coming year would be on network construction and enhancement work to improve the coverage of DAB services. To ensure the efficient use of the spectrum assigned for EPG before its launch, the licensees proposed that a bitrate capacity reconfiguration exercise be conducted to improve the sound quality of their DAB services or the throughput of their ancillary visual services during the interim period.
While the DAB licensees were obliged under their licences to provide EPG, the CA recognised that it might take a longer time for the technical and market aspects of DAB services to be fully developed. The CA noted that, despite the difficult market conditions, the licensees remained committed to improving the coverage of DAB services through continuing their investment in the principal transmission stations and establishing gap fillers. Furthermore, the proposed use of the spectrum assigned for EPG during the interim period would ensure that the spectrum would be put to good use to the benefit of the public before the launch of EPG. For the above reason, the CA decided to further extend the deadline for launching EPG by the DAB licensees.
Given the uncertainties arising from the technical and market problems pertaining to the development of DAB services, the CA considered that it would be more appropriate to determine the extension period after a comprehensive review. As the DAB licences are due for a mid-term review after 22 March 2017, the CA decided that the launch of EPG should be reviewed in that context and that the deadline for the launch of EPG should be deferred to one year after the mid-term review, i.e. 21 March 2018.
During the capacity reconfiguration exercise, DAB services will be suspended for around four hours. The CA approved that the DAB licensees be exempted from providing a 24-hour service as per the licence requirement during the capacity reconfiguration exercise, which was tentatively planned to take place in November 2014.
Broadcast Complaints
The CA also considered two complaint cases in respect of the licensees’ non-compliance with the codes of practice on television programme and advertising standards –
(a) a complaint against the television programme "Cartoon Park"(第一動畫樂園) broadcast on the CCTV-1 Channel of Asia Television Limited (“ATV”) on 17 May 2014. The CA decided that ATV should be advised to observe more closely the relevant provisions in the Generic Code of Practice on Television Advertising Standards; and
(b) complaints against the television programme “Vision on International Finance” (國際財經視野) broadcast on the Home and Asia Channels of ATV from January to June 2014. The CA decided that ATV should be advised to observe more closely the relevant provisions in the Generic Code of Practice on Television Programme Standards.
Details of the above cases are at Appendix.
23 September 2014
Communications Authority
Secretariat