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The following is issued on behalf of the Communications Authority:
Following the decision of the Chief Executive (CE) in Council announced today (March 22) to renew the sound broadcasting licences of Hong Kong Commercial Broadcasting Company Limited (CRHK) and Metro Broadcast Corporation Limited (Metro) for the provision of their analogue sound broadcasting services (analogue sound broadcasting licences), comprising two Frequency Modulation (FM) radio channels and one Amplitude Modulation (AM) radio channel each, for another 12 years from August 26, 2016, to August 25, 2028, the Communications Authority (CA) decided to adopt an administrative approach to re-assign to CRHK and Metro the analogue sound broadcasting spectrum each of them currently holds, comprising, for CRHK, a group of 14 frequencies in the FM band and a single frequency in the AM band, and for Metro, a group of 16 frequencies in the FM band and a single frequency in the AM band, for the provision of their licensed analogue sound broadcasting services during the validity of their renewed analogue sound broadcasting licences from August 26, 2016, to August 25, 2028.
CRHK and Metro are holders of analogue sound broadcasting licences granted by the CE in Council under the Telecommunications Ordinance (Cap. 106) (TO). The former Telecommunications Authority assigned to CRHK and Metro frequencies in the FM and AM bands, with specified transmission plans under their analogue sound broadcasting licences, to enable them to provide their licensed analogue sound broadcasting services to the listening audience. The existing assignment of spectrum to CRHK and Metro and their current analogue sound broadcasting licences will both expire on August 25, 2016. With the decision of the CE in Council to renew the licences of CRHK and Metro, the CA needs to consider now the assignment of analogue sound broadcasting spectrum to CRHK and Metro during the validity of their renewed analogue sound broadcasting licences.
In coming to the decision to adopt an administrative approach to the re-assignment of analogue sound broadcasting spectrum to CRHK and Metro, the CA has given due consideration to all relevant factors, including the provisions of the TO, the CA's statutory duties, the prevailing analogue sound broadcasting landscape, the Radio Spectrum Policy Framework (SPF) promulgated by the Government in 2007 and the observations of the Commerce and Economic Development Bureau. The CA has also taken into account the facilitative role of spectrum assignment, which has always dovetailed with sound broadcasting licensing decisions, in deciding to administratively re-assign the analogue sound broadcasting spectrum CRHK and Metro currently hold upon the renewal of their analogue sound broadcasting licences by the CE in Council.
Under section 32G(1) of the TO, the CA has the statutory duty to promote the efficient allocation and use of the radio spectrum as a public resource of Hong Kong. Section 32H(2)(c) of the TO empowers the CA to assign radio frequencies.
The CA considers that only analogue sound broadcasting licensees under the TO should be eligible for assignment of the analogue sound broadcasting spectrum as only they are in a ready position to effectively and efficiently use that spectrum for the benefit of the listening audience in Hong Kong. The CA also considers that, as a general principle, subject to the availability of spectrum, individual licensees should be assigned such amount of spectrum as is commensurate with, and no more than what is required to meet, the licensed analogue sound broadcasting service needs of licensees, measured in terms of their licensed programme channel line-up.
In accordance with the Government's SPF, the CA needs to assess the likelihood of competing demands from providers of non-Government services for the analogue sound broadcasting spectrum currently assigned to CRHK and Metro. Given the prevailing analogue sound broadcasting landscape and the demand and supply situation with respect to analogue sound broadcasting spectrum, the CA concluded that there is little or no likelihood of competing demands for the analogue sound broadcasting spectrum currently assigned to CRHK and Metro, whether now or in the near future. Therefore, there is no need for the CA to adopt a market-based approach for assignment of analogue sound broadcasting spectrum currently held by CRHK and Metro. The CA considers it appropriate to continue to adopt an administrative approach in the re-assignment of spectrum to CRHK and Metro to ensure that their licensed analogue sound broadcasting services could be provided through radio spectrum during the validity of their renewed analogue sound broadcasting licences.
Detailed considerations of the above decision of the CA are set out in the CA's Statement on assignment of spectrum to CRHK and Metro for the provision of their licensed analogue sound broadcasting services from August 26, 2016, to August 25, 2028, which is published on the CA's website (www.coms-auth.hk/filemanager/common/policies_regulations/ca_statements/ca_statements20160322_en.pdf).
For the avoidance of doubt, nothing in the CA's Statement will in any way fetter the CA's discretion to manage analogue sound broadcasting spectrum and to decide how it should be assigned in the future. In exercising that discretion and making such decisions, the CA will have regard to all relevant factors, including the TO, its statutory duties, the prevailing analogue sound broadcasting landscape, the SPF and the relevant policy considerations. The CA will consider future assignments or re-assignments of analogue sound broadcasting spectrum on a case-by-case basis.
Ends/Tuesday, March 22, 2016
Issued at HKT 18:18
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