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The following is issued on behalf of the Broadcasting Authority:
It is an update reflecting the outcome of the Broadcasting Authority's deliberations in August 2010.
Changes in shareholding and ownership structure of
Asia Television Limited
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At its meeting in August, the Broadcasting Authority (BA) discussed the application for change in shareholding and ownership structure of Asia Television Limited (ATV) arising from the introduction of a new shareholder, namely Mr Wong Ben-koon, who will acquire all the 52.4% voting shares of ATV collectively held by three existing shareholders, namely Panfair Holdings Limited, Dragon Viceroy Limited and China Light Group Limited. The application was approved and took effect on September 1, 2010.
The BA's approval is subject to the conditions that ATV shall continue to comply with all the relevant regulatory requirements applicable to it and that after the shareholding changes, ATV and Mr Wong Ben-koon shall be respectively bound by the statements, representations, assurances and undertakings made in the application.
The BA is satisfied that the regulatory requirements under the Broadcasting Ordinance (Cap. 562) (BO) are and will continue to be complied with by ATV after the changes in shareholding and ownership structure. In particular, ATV will remain a company incorporated in Hong Kong and will not be a subsidiary of a corporation, and its control and management will continue to be bona fide exercised in Hong Kong. The selection, production or scheduling of programmes will continue to be carried out by a principal officer who is ordinarily resident in Hong Kong within the meaning of the BO and ATV's domestic free television programme service will remain primarily targeting Hong Kong.
The BA has noted that there have been public concerns over the control and management of ATV and has received submissions on the matter. The BA has written to ATV to express its serious concern over the effective management and control of the company and seek further information and clarifications on the matter. After careful consideration of the submissions received and ATV's responses, the BA has reminded ATV, as a domestic free television programme service licensee, to respect the spirit and letter of all statutory requirements and licensing conditions pertaining to management and control, ensure strict compliance with these requirements and adopt the highest standards of corporate governance commensurate with the status of a domestic free television programme service licensee.
Investigation into the alleged abuse of a dominant
position by Television Broadcasts Limited
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The BA has completed its preliminary enquiry into the complaint case alleging that the Television Broadcasts Limited (TVB) has abused its dominant position by engaging in anti-competitive practices in contravention of section 14 of the BO. Having taken into account the findings of the preliminary enquiry and the advice of independent consultants, the BA decided that a full investigation into the complaint case should be conducted and further information would be gathered from licensees and any other relevant parties before the BA forms a final view.
The investigation will proceed in accordance with the Competition Investigation Procedures which were promulgated by the BA pursuant to section 4 of the BO. No assumption should be made at this stage that there has been an infringement of the relevant provisions under the BO.
Application of Ocean Technology Limited for a sound
broadcasting licence
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During the meeting, the BA considered the application of Ocean Technology Limited (OTL) dated January 8, 2009, for a sound broadcasting licence. Having duly considered OTL's proposals in relation to the use of frequency spectrum for providing its sound broadcasting service and the Telecommunications Authority's (TA) expert opinion, the BA is not satisfied that the pre-requisite laid down in section 13B(2) of the Telecommunications Ordinance (Cap. 106) (TO) has been met. The BA has thus rejected OTL's application in accordance with the provisions under the TO.
Pursuant to section 13B(2) of the TO, a sound broadcasting licence application may be entertained only if the BA, after consulting the TA, is satisfied that –
(a) the frequency in the radio spectrum that the applicant proposes to use is available as at the date of the application; and
(b) that frequency is suitable for use in providing the proposed sound broadcasting service.
In processing the application, the BA has consulted the TA and had explained in detail to OTL that it had to provide sufficient information about its proposals on use of spectrum, service coverage, technical details of the intended service etc, so that its application could be processed pursuant to the TO. The BA had specifically requested OTL eight times to provide the relevant information, from February 2009 to May 2010. OTL did not respond to any of the requests.
Other complaint cases
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The BA also considered two complaint cases, among others, which were in breach of the codes of practices on programme and advertising standards –
(a) Six members of the public complained about the television programme "Scoop" broadcast on the Jade Channel of Television Broadcasts Limited (TVB) on 16 days in January and 19 days in February 2010. The BA decided to impose a financial penalty of $40,000 on TVB for breach of paragraphs 1 and 3 of Chapter 11 of the Generic Code of Practice on Television Programme Standards (TV Programme Code) which prohibit the mingling of programme and advertising material and undue prominence to products and services of a commercial nature in a programme.
(b) Two members of the public were dissatisfied with the decisions of the Commissioner for Television and Entertainment Licensing (CTEL) on complaints about the television programme "Super Trio Game Master Pre-show" broadcast on TVB's Jade Channel on April 18, 2010. The BA decided that TVB should be advised to observe more closely paragraph 4(g) of Chapter 8 of the TV Programme Code regarding the broadcasting of dangerous acts.
Further details of the above cases are available in the Appendix.
The BA also noted that in July 2010, CTEL dealt with 75 cases (167 complaints) under its delegated authority, of which three cases (three complaints) were classified as minor breaches and 33 cases (55 complaints) were unsubstantiated. The remaining 39 cases (109 complaints) were held to be outside the ambit of the Broadcasting Authority Ordinance. The monthly complaints figures dealt with by CTEL from July 2009 to July 2010 are shown in Figure 1. A chart showing the respective nature of the unsubstantiated complaints classified by CTEL in July 2010 is at Figure 2. A chart showing the respective nature of complaints which were classified as minor breaches is at Figure 3. Please visit the BA website (www.hkba.hk) for further information on the complaints.
Ends/Friday, September 10, 2010
Issued at HKT 16:52
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