Speech by Secretary for Broadcasting, Culture and Sport,
Mr Chau Tak Hay,
at Cable & Satellite Asia '97 Conference & Exhibition
held by Cable & Satellite Broadcasting Association of Asia
at Hong Kong Convention and Exhibition Centre

Wednesday, December 3, 1997


Mr Chang, distinguished guests, ladies and gentlemen,

It gives me great pleasure to welcome delegates to the annual conference of the Cable and Satellite Broadcasting Association of Asia (CASBAA). This is the third time that CASBAA has chosen Hong Kong as the venue for this high-level management conference. This year's annual conference is of particular significance because it is being held for the first time in the Hong Kong Special Administrative Region of the People's Republic of China.

Yes, on 1 July 1997 we were at last re-united with our motherland. But apart from that most significant change, those of you who have visited Hong Kong before will be able to testify that not much else has changed. Hong Kong is still as dynamic and as open as ever. Our six million people continue to enjoy the freedoms of speech and of the press, the rule of law and a clean and efficient Government. Only a couple of days ago, the Heritage Foundation, the prestigious think tank based in Washington DC, named Hong Kong as the world's freest economy for the fourth consecutive year.

I am happy to be able to say, however, that while Hong Kong's economic and other fundamentals have remained unchanged, the last 12 months have witnessed many new developments in the Asian satellite and cable broadcasting industry. Many networks have been built, extended or radically upgraded, and new marketing strategies have been devised to sell services and products to consumers. Some companies have merged while others have separated, in search of the best business path to take - all adding energy and excitement to an already thriving industry.

In many places, and Hong Kong is no exception, satellite and cable TV industries are undergoing transformation. The pace for change may differ but none will wish to lag behind and miss the huge opportunities made possible by the application of new technologies and ever-growing consumer demand. The convergence of computer, television, audio/video and telecommunication technologies has redefined the boundaries of information and entertainment; and of computer and audio/video products, whether hardware or software. Cable and satellite operators, programmers, and Government regulators will have to confront and embrace these new challenges.

In weeks and not months, Hong Kong will witness the birth of the world's first commercial-scale interactive video-on-demand (VOD) programme service. Those of you who attended last year's conference will remember that there were then still many sceptics who doubted whether such a VOD service would become a reality even in a place such as Hong Kong where nothing is impossible.

Of course, VOD is a technology-intensive and therefore capital-intensive business. But Hong Kong is perhaps uniquely well-placed to meet the VOD challenge. More than 90% of our 1.6 million households are concentrated in high-rise, compact and densely-populated areas. Attaining a critical mass of subscribers within a reasonably short period of time can be a reality, given of course the necessary entrepreneurial spirit and skills for which Hong Kong businessmen are justly famous. With one of the most highly developed and open telecommunications networks in the world, Hong Kong is poised to play a leading role in the development of VOD services.

Most recently, there has been another important development. In late November, the recently concluded World Radiocommunications Conference of the International Telecommunication Union approved the allocation of a set of Direct Broadcast Satellite (DBS) frequencies to China specifically for use by the Hong Kong Special Administrative Region. This approval was obtained with the strong support and active assistance of the Delegation of the People's Republic of China and is yet another clear demonstration of the Central People's Government's understanding of Hong Kong's needs and their determination to make a success of the "one country, two systems" policy.

Our acquisition of these DBS frequencies will make it possible for the provision of direct-to-home, or DTH, satellite TV services to Hong Kong. The four frequencies which have been allocated to us will be able to support eight High Definition TV channels or 24 digital TV channels or a mixture of the two.

The Government of the Hong Kong Special Administrative Region attaches great importance to preserving the freedom and diversity of the electronic and print media in Hong Kong. With technological progress will come more intense competition for viewers, and I hope, greater choice and better quality programmes for the people of Hong Kong. We are committed to working closely with the industry as it continues to expand; and we will do our utmost to support its growth.

Finally, let me wish those of you who are visitors a very enjoyable stay in Hong Kong and all of you a meaningful and rewarding Conference.