****************************************************

The Chief Executive in Council has granted a satellite television uplink and downlink licence to Starbucks (HK) Limited (Starbucks) which plans to launch a regional free-to-air satellite TV channel in the first half of 2000. The licence, issued under the Telecommunication Ordinance, is for a term of 12 years.

Starbucks, formed and registered in Hong Kong under the Companies Ordinance, is a wholly-owned subsidiary of Pacific Century CyberWorks Limited.

In response to the "Guidance Note for Those Interested in Obtaining Television Uplink and Downlink Licences" issued in September 1998, Starbucks had applied for a licence to launch a regional free-to-air English TV channel in the first half of 2000, to be followed by a Putonghua Channel and a Japanese Channel by end 2000. The company has no plan to provide its television service on a subscription basis in Hong Kong for the time being. Should it wish to provide such a service, it will have to apply to the Chief Executive in Council for approval to amend the licence.

As a satellite television uplink and downlink licensee, Starbucks is required to comply with the Codes of Practice on Programme and Advertising Standards issued by the Broadcasting Authority. Also it has to take all reasonable steps to ensure the acceptability of its services in, and to comply with the laws and programme and advertising standards stipulated by the relevant authorities of, recipient countries and places.

To secure Starbucks' compliance with the terms and conditions of the licence, Pacific Century CyberWorks Limited has undertaken to execute a deed of performance guarantee in favour of the Government.

Commenting on the grant of the licence to Starbucks, a spokesman for the Information Technology and Broadcasting Bureau said today (Tuesday), "It is Government policy to attract and facilitate regional satellite broadcasters to establish their businesses and uplink their services from Hong Kong."

"This will strengthen Hong Kong's position as a broadcasting and communications hub of the region," he added.

End/Tuesday, January 4, 2000

NNNN