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The following is issued on behalf of the Communications Authority:
The Communications Authority (CA) has decided that a financial penalty of $80,000 should be imposed on Digital Broadcasting Corporation Hong Kong Limited (DBC) for breaching its sound broadcasting licence arising from the cessation of its service between 8pm on October 10, 2012 to 7am on October 15, 2012.
Under its licence, DBC is required to broadcast each day seven 24-hour sound broadcasting service channels of specified genres. DBC did not provide any sound broadcasting service from 8pm on October 10, 2012 to 7am on October 15, 2012. The CA considered that a complete cessation of service lasting for more than four days was a serious breach given that it was a fundamental obligation of DBC, a sound broadcasting licensee, to provide a 24-hour sound broadcasting service to the public in accordance with its licence. The cessation of service also went against public expectation over the proper use of the spectrum, a scarce and valuable public resource that had been assigned to DBC. Also, DBC had not accounted for the efforts it had made, if any, to avoid the service cessation. Having considered the severity, nature and duration of the breach and representations made by DBC, the CA decided to impose on DBC a financial penalty of $80,000, which is the maximum financial penalty that might be levied on the first occasion a penalty is so imposed on a sound broadcasting licensee. (Note)
Separately, in connection with the broadcast of music and re-run programmes by DBC from 11.30pm on October 21, 2012 to midnight on October 31, 2012, and DBC's cessation of service again from midnight on October 31, 2012, the receivers of DBC (the Receivers) submitted an application on November 2, 2012 for the CA's approval for DBC to vary its broadcasting arrangements from October 21, 2012 for a period of up to 60 days so that the Receivers could be given more time to resolve the funding issue of DBC. The CA has upon receipt of the application written to require DBC to provide further information and justifications. The CA is still awaiting the full reply from the Receivers. The CA will consider DBC's application in accordance with the established procedure once the required information is available. An announcement will be made once the CA has reached a decision on the application.
Note: According to the Broadcasting (Miscellaneous Provisions) Ordinance (Cap. 391), a financial penalty imposed on a sound broadcasting licensee shall not exceed $80,000 for the first occasion on which a penalty is so imposed on that licensee. No financial penalty has been imposed on DBC before.
Ends/Monday, November 19, 2012
Issued at HKT 17:49
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