**************************************
The following is issued on behalf of the Communications Authority:
This press release summarises the Communications Authority (CA)'s decisions at its 23rd meeting in September 2013:
Changes in the shareholding structure of Digital
Broadcasting Corporation Hong Kong Limited (DBC)
------------------------------------------------
The CA approved the application of DBC for proposed changes in its shareholding structure arising from the proposed transfer of 39.6 per cent of DBC's shares to Mr Wong Cho-bau from other shareholders. Upon completion of the proposed transfer of shares, Mr Wong Cho-bau will own 99.6 per cent of the shares in DBC while the remaining shares will be evenly owned by Professor Arthur Li Kwok-cheung, Dr David Li Kwok-po and Dr Allan Wong Chi-yun.
Having taken into account DBC's submissions, the CA was satisfied that after the proposed transfer of shares, DBC would continue to comply with the applicable regulatory requirements. Accordingly, the CA approved DBC's application.
Breach of licence conditions by Asia Television
Limited (ATV)
-----------------------------------------------
The CA decided that ATV was in breach of Conditions 2.2 and 3.1 of the First Schedule to its domestic free television programme service licence. The breach was related to ATV's failure to provide English subtitles during the broadcast of the Cantonese programme "The Way We Are" on its World Channel on June 16, 2013 from 9pm to 11pm. Taking into account that the lapse, which involved only one television programme, was a genuine case of unintentional oversight, and that ATV had taken the initiative to report the lapse to the CA and pledged to exercise greater care to prevent recurrence of similar lapse in future, the CA decided that ATV should be strongly advised to observe more closely the relevant provisions in its licence.
Other licensable television programme service licence
-----------------------------------------------------
The CA approved the application of Greenroll Limited for the renewal of its other licensable television programme service licence for the provision of a television programme service in hotel rooms in Hong Kong for a period of 12 years. With this newly renewed licence, there are now 26 other licensable television programme service licensees providing services to more than 80 hotels in Hong Kong.
CSL Limited (CSL) was found in breach of section 7M
of the Telecommunications Ordinance
---------------------------------------------------
The CA considered a complaint against CSL for breaching section 7M of the Telecommunications Ordinance (TO) (Cap. 106). The complainant alleged that various speed representations made by CSL in its promotional materials between April and July 2011 promoting its mobile broadband services was misleading or deceptive, thereby contravening section 7M. Having considered the findings of the investigation conducted by the Office of the Communications Authority (OFCA), the CA was of the view that CSL had engaged in misleading or deceptive conduct in breach of section 7M of the TO. The CA concluded that a financial penalty of HK$90,000 imposed on CSL was proportionate and reasonable in relation to the breach concerned. For details, please refer to the CA's Decision which is published at www.coms-auth.hk/filemanager/statement/en/upload/220/CSL_FinalDecision_20130910-1_e.pdf .
Non-compliance with telecommunications licence
conditions
----------------------------------------------
The CA also considered the following four cases in respect of telecommunications operators' non-compliance with the relevant licence requirements:
(a) In March 2013, Hong Kong Broadband Network Limited (HKBN) reported that it had made incorrect charge entries to the bills of its customers for the month of February 2013. After considering the assessment of the OFCA, the CA concluded that there had been no breach by HKBN of General Condition (GC) 24(1) of its fixed telecommunications network services licence, which requires it to take all reasonable steps to ensure that any metering equipment used in connection with the service is accurate and reliable. However, HKBN had failed to comply with the requirement of paragraph 10 of the Code of Practice in Relation to Billing Information and Payment Collection for Telecommunications Services (Code of Practice), with which HKBN has pledged to comply, i.e. to take all reasonable, necessary and practical steps to ensure that the information used for collection of payment from customers is secure, authentic and error-free. In this regard, HKBN is advised to observe more closely paragraph 10 of the Code of Practice. For details, please refer to the CA's Decision which is published at www.coms-auth.hk/filemanager/statement/en/upload/215/HKBN_FinalDecision_20130910.pdf ;
(b) On March 18, 2013, there was a disruption of the outgoing voice services of SmarTone Communications Limited and SmarTone Mobile Communications Limited (collectively "SmarTone"), which affected around 40,000 customers of SmarTone for around 58 minutes. The OFCA conducted an investigation into the incident. After considering the findings and assessment of OFCA, the CA concluded that there had been no breach by SmarTone of GC 5.1 of its licences, which require it to operate, maintain and provide a good, efficient and continuous service in a manner satisfactory to the CA. For details, please refer to the CA's Decision at www.coms-auth.hk/filemanager/statement/en/upload/216/SmarTone_FinalDecision_20130910.pdf ;
(c) A customer complained of the porting of his number from Hong Kong Telecommunications (HKT) Limited to CSL without his consent in March 2012. The OFCA conducted an investigation into the complaint. It was found that CSL had not obtained the customer's signature in the Mobile Number Portability application form and it had initiated the number porting without the customer's consent. After considering the findings and assessment of the OFCA, the CA concluded that CSL had breached Special Condition (SC) 4.4 of its licence and sections 4.7.1 and 4.7.2 of the Procedures for Mobile Number Portability Provision (MNP Procedures). Having considered the representation of CSL, the CA took the view that CSL should be advised to observe more closely SC 4.4 of its licence and sections 4.7.1 and 4.7.2 of the MNP Procedures. For details, please refer to the CA's Decision at www.coms-auth.hk/filemanager/statement/en/upload/217/CSL_FinalDecision_20130910-2.pdf ; and
(d) In October 2012, a customer complained China Motion Telecom (HK) Limited (China Motion) of its contravention of the "Guidelines for the Implementation of the Fair Usage Policy for the Provision of Mobile and Fixed Broadband Services" (the Guidelines) which the service providers had to comply with on a mandatory basis. OFCA conducted an investigation into the complaint. It was found that China Motion had contravened Principle 1 of the Guidelines. Accordingly, China Motion had breached SC 13.1 of its licence for failing to comply with the Guidelines issued under the SC. Having considered the representation of China Motion, the CA decided to issue a warning to China Motion. For details, please refer to the CA's Decision at www.coms-auth.hk/filemanager/statement/en/upload/218/ChinaMotion_Final_Decision_20130910.pdf .
Broadcasting complaint cases
----------------------------
In addition, the CA considered three complaint cases in respect of the broadcasters' non-compliance with the relevant codes of practice on programme and advertising standards:
(a) a complaint against the television programme "Season of Love" broadcast on the Jade and HD Jade Channels of Television Broadcasts Limited (TVB) on March 4, 2013. The CA decided that TVB should be seriously warned to observe more closely the relevant provisions of the Generic Code of Practice on Television Programme Standards (TV Programme Code) and the Generic Code of Practice on Television Advertising Standards (TV Advertising Code);
(b) a complaint against the radio programme "Made in Hong Kong" broadcast on the Radio 2 Channel of Radio Television Hong Kong (RTHK) on May 1, 2013. The CA decided that RTHK should be strongly advised to observe more closely the relevant provision of the Radio Code of Practice on Programme Standards (Radio Programme Code); and
(c) a complaint against the radio programme "Morning Suite" broadcast on the Radio 2 Channel of RTHK on April 5, 2013. The CA decided that RTHK should be advised to observe more closely the relevant provision of the Radio Programme Code.
Details of the three cases are at www.coms-auth.hk/filemanager/en/content_713/appx_20130910_en.pdf.
Ends/Tuesday, September 10, 2013
Issued at HKT 16:26
NNNN
