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Broadcasting Authority's deliberations in June
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The following is issued on behalf of the Broadcasting Authority:

     This press release summarises the outcome of Broadcasting Authority (BA)'s deliberations in June 2011:

Extension of digital terrestrial television coverage
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     The BA approved the applications of Asia Television Limited (ATV) and Television Broadcasts Limited (TVB) to extend the coverage of their digital terrestrial television (DTT) services to at least 96 per cent of the population by December 31, 2011.  

     Since the launch of their DTT services on December 31, 2007, ATV and TVB have been progressively expanding their digital transmission networks.  By end 2010, the licensees had constructed a total of six principal stations and 14 fill-in stations with the target of achieving DTT coverage of 89 per cent of the population.  The licensees now plan to add nine additional fill-in stations in order to further expand the coverage to at least 96 per cent of the population before the end of 2011.

     Section 18(1) of the Broadcasting Ordinance (Cap 562) (BO) requires ATV and TVB to provide their television programme services in such manner as to enable their services to be received throughout Hong Kong to the satisfaction of the BA.  Section 18(2) of the BO empowers the BA to exempt the licensees from providing coverage to certain parts of Hong Kong.

     After considering the licensees' network roll-out plans and the advice of the Office of the Telecommunications Authority (OFTA), the BA decided to extend the period of exemption from territory-wide coverage until June 30, 2012, subject to the condition that the licensees' DTT services should cover at least 96% of the population by December 31, 2011.  The licensees are required to submit auditors' certificates to certify the progress of their coverage roll-out plans.  The BA will monitor the implementation of the coverage plans of the licensees in consultation with OFTA.  

     The above exemption is specific to the licensees' DTT coverage.  The two licensees will continue to be required to provide their analogue television services on a territory-wide basis to the satisfaction of the BA.

Public views on the services provided by
Domestic Free Television Programme Service Licensees
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     In the context of the mid-term review of the domestic free television programme service licences of Asia Television Limited (ATV) and Television Broadcasts Limited (TVB) in 2010, the Chief Executive in Council approved, among other things, the BA's recommendations to engage the public, on a yearly basis, to collect their views on the quality and variety of the television programmes provided by the two licensees.  The first such public engagement exercise was completed earlier this year.  Opinions received are diverse.  The more notable suggestions/comments received include -

* more sports programmes should be produced;
* a greater variety of programmes should be provided during prime time;
* more research should be conducted to ensure the accuracy of information provided in drama and variety programmes;
* more children's programmes with educational and information contents should be offered;
* drama and programme production should be more creative;
* ATV should provide more self-produced programmes; and
* the quality of television games shows on TVB should be improved.

     The views collected had been sent to ATV and TVB for feedback and follow-up.  The BA is pleased to note that the licensees' response and follow-up actions have addressed many of the concerns raised.  A report on the views collected and the licensees' responses is available on the BA website (www.hkba.hk).  

Other Licensable Television Programme Service Licence
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     The BA approved an application by iBAHN Asia Pacific Limited for an "other licensable television programme service licence" for the provision of hotel television programme services in Hong Kong. The period of validity of the licence is 12 years, from July 4, 2011 to July 3, 2023 (both dates inclusive).  With this newly-approved licence, there are now 28 "other licensable television programme service" licensees providing services to more than 80 hotels in Hong Kong.

Non-domestic Television Programme Service Licence
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     The BA accepted the application of Skywave TV Company Limited (Skywave TV) to surrender its non-domestic television programme service licence with effect from May 14, 2011.  The BA noted that the surrender of licence was purely a commercial decision of Skywave TV.

Mid-term review of the Sound Broadcasting Licences of Hong Kong Commercial Broadcasting Company Limited (CRHK) and Metro Broadcast Corporation Limited (Metro)
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     The BA welcomes the Chief Executive in Council's approval of the recommendations made by the BA following the mid-term review of the sound broadcasting licences of CRHK and Metro.  As part of the mid-term review exercise, the BA examined the past performance of the two licensees and found that CRHK's projected actual expenditure for 2004 to 2010 was 26% less than the original investment commitment.  CRHK attributed the shortfall to a number of factors, including the charging of expenditure on development of website and multi-media applications to the accounts of Commercial Radio Interactive (an affiliate of CRHK established to carry out such development work) instead of CRHK's own accounts; reduced overall spending by advertisers on sponsored events; savings from not signing exclusive contracts with a number of popular programme hosts; and expenditure cuts amidst the economic downturns during the reporting period.  The BA was not unsympathetic to the need for CRHK to adjust its investment plans during the reporting period.  However, the BA was concerned that CRHK, as a licensee, should have taken its investment commitments seriously and should have sought the BA's prior exemption at an early stage.  The BA considered CRHK's oversight a serious lapse by its management and issued a warning to CRHK for the breach.

Complaint cases
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     The BA also considered three complaint cases in respect of licensees' compliance with the television programme service licence condition and the relevant codes of practices on programme and advertising standards -

(a) complaints against the television programmes "Late News" and "Main News and Weather Report" broadcast on the World Channel of Asia Television Limited (ATV) on December 20 and 27, 2010 and on February 7, 2011 respectively.  The BA decided that ATV should be warned to observe more closely the relevant provisions in the Generic Code of Practice on Television Programme Standards (TV Programme Code);

(b) a complaint against the television programme "UEFA Europa League 2010/11: CSKA Moscow vs PAOK" broadcast on February 23, 2011 on the Cable Soccer Betting Channel of Hong Kong Cable Television Limited (HKCTV).  The BA decided that HKCTV should be warned to observe more closely the relevant provisions in the TV Programme Code; and

(c) a member of the public was dissatisfied with the decision of the Commissioner for Television and Entertainment Licensing (CTEL) in classifying the complaint about the television programme "Smart Daily Life" broadcast on the TVS Channel of ATV on June 8 to 17, 2010 as minor breach.  The BA decided that ATV should be advised to observe more closely the relevant condition in ATV's Domestic Free Television Programme Service Licence and reminded of its duty as a responsible licensee to ensure its direct-retransmission channels are in compliance with the BA Codes of Practices.

     Further details of the above cases are available in the Appendix.

     The BA noted that in May 2011, CTEL dealt with 159 cases (184 complaints) under its delegated authority, of which 6 cases (9 complaints) were classified as minor breaches and 82 cases (100 complaints) were unsubstantiated.  The remaining 71 cases (75 complaints) were held to be outside the ambit of the Broadcasting Authority Ordinance. The monthly complaint figures dealt with by CTEL from May 2010 to May 2011 are shown in Figure 1.  A chart showing the respective nature of the unsubstantiated complaints classified by CTEL in May 2011 is at Figure 2.  A chart showing the respective nature of complaints which were classified as minor breaches is at Figure 3.  Further information about the complaints is available at the BA website (www.hkba.hk).

Ends/Monday, July 4, 2011
Issued at HKT 19:20

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