The Development of Digital Terrestrial Television Services

Extending Digital Terrestrial Television Coverage

Since the launch of DTT services in late 2007, the two domestic free television programme service licensees, namely ATV and TVB, have constructed by phases a total of 29 transmitting stations. By September 2013, this has brought the overall DTT coverage to at least 99% of the population, which is on a par with that of analogue television. More people can now enjoy better quality pictures and enhanced features, including high-definition television (“HDTV”) with more programming choices available from additional television programme channels¹ and value-added services (such as closed captioning, electronic programme guides and interactive services).

Roll-out of Digital Audio Broadcasting Services

The three Digital Audio Broadcasting (“DAB”) licensees, namely Digital Broadcasting Corporation Hong Kong Limited (“DBC”), Metro Broadcast Corporation Limited (“Metro”) and Phoenix U Radio Limited (“Phoenix U Radio”), formally launched DAB services in 2012 in accordance with their licence requirements. The Radio Television Hong Kong (“RTHK”) also formally launched its DAB service in September 2012. As of the end of September 2014, the licensees and RTHK provided a total of 17 DAB channels (7 by DBC, 3 by Metro, 2 by Phoenix U Radio and 5 by RTHK). The number of DAB channels will gradually increase to 18.

The DAB transmission network, comprising seven principal transmitting stations located at Beacon Hill, Castle Peak, Cloudy Hill, Golden Hill, Kowloon Peak, Lamma Island and Mount Gough, was officially launched in June 2012.

Handling of Broadcast Complaints

The CA does not pre-censor broadcast content, but adopts a complaint-driven approach to ensure that broadcast content is in compliance with legislation, licence conditions and the codes of practice issued by the CA. As the executive arm of the CA, we assist the CA in handling complaints about broadcast materials in accordance with the provisions stipulated in the Broadcasting (Miscellaneous Provisions) Ordinance (Cap 391) (“B(MP)O”) and the CA broadcast complaint handling procedures.

In 2013/14, we dealt with 3 029 cases (12 998 complaints)², which represented an increase of 86% in the number of cases, and a decrease of 74% in the number of complaints processed, as compared with the figures recorded in 2012/13 (1 625 cases and 49 184 complaints³) . Among these, 43 cases (5 867 complaints) were referred to the Broadcast Complaints Committee (“BCC”) under the CA and then to the CA for consideration and determination. Details of the complaint cases considered by the CA are published on the CA website. The Director-General of Communications handled the remaining 2 986 cases (7 131 complaints) under the power delegated by the CA. These complaints were related to breaches of a minor nature, or allegations which did not constitute any breach or were outside the remit of section 11(1) of the B(MP)O, that is, the substance of the complaints did not involve a contravention of legislation, licence conditions or codes of practice.

Licence Administration

Applications for Renewal of Television Programme Service Licences

The domestic free television programme service licences of ATV and TVB will expire on 30 November 2015. TVB and ATV submitted their applications for licence renewal to the CA on 19 and 29 November 2013 respectively. From February to April 2014, we assisted the CA in conducting a two-month public consultation exercise on the renewal of these licences. We also assisted the CA in carrying out a comprehensive assessment of the performance of ATV and TVB since December 2003, with a view to making recommendations to the CE in C on the licence renewal applications by November 2014.

The domestic pay television programme service licence of PCCW Media Limited (“PCCW Media”) will expire on 25 September 2015. PCCW Media submitted an application for licence renewal to the CA on 25 September 2013. In November 2013, we assisted the CA in conducting a one-month public consultation exercise on the renewal of PCCW Media’s licence. We also assisted the CA in carrying out a comprehensive assessment of the performance of PCCW Media since September 2003, with a view to making recommendations to the CE in C on the licence renewal application by September 2014.

We also processed a total of eight applications for new and renewal of non-domestic television programme service licences and other licensable television programme service licences for the provision of television programme services in hotel rooms in Hong Kong, as follows:

(a) application for a non-domestic television programme service licence from Star China Media Limited;

(b) application for an other licensable television programme service licence from Swisscom Hospitality Hong Kong Limited;

(c) applications for the renewal of non-domestic television programme service licences from China Entertainment Television Broadcast Limited, GLOBECAST HONG KONG LIMITED (formerly GlobeCast Hong Kong Limited), Sun Television Cybernetworks Enterprise Limited, and Turner International Asia Pacific Limited; and

(d) applications for the renewal of other licensable television programme service licences from Goodnews Communication International Limited and Greenroll Limited.

Applications for Domestic Free Television Programme Service Licences

In October 2013, the CE in C approved in principle the applications for domestic free television programme service licences of Fantastic Television Limited (“Fantastic TV”) and HK Television Entertainment Company Limited (“HKTVE”). We assist the CA in taking the necessary follow-up action on the licence applications. Upon completion of the assessment of further information submitted by the two applicants and conclusion of the licence negotiations, the CA will submit to the CE in C recommendations on whether free television programme service licences should be formally granted to Fantastic TV and HKTVE.

Investigation into Control and Management of ATV

In August 2013, we assisted the CA in completing its investigation into the exercise of control of ATV by a person who did not meet the fit and proper person requirement. Apart from the imposition of a financial penalty of HK$1 million on ATV for breaching the licensing conditions regarding the control of a licensee, ATV was required, inter alia, to take immediate rectification action to ensure that its management should not be performed by any persons other than its directors and principal officers and duly authorised persons, and to take effective steps to improve its corporate governance standards.

Investigation into TVB’s Violation of the Competition Provisions of the Broadcasting Ordinance

We assisted the CA in completing its investigation into the alleged violation of the competition provisions of the BO by TVB, and published the CA’s investigation report in September 2013. The CA found TVB in breach of sections 13 and 14 of the BO. It imposed on TVB a financial penalty of HK$900,000 and directed TVB to end the anti-competitive practices concerned and to take a number of remedial actions. TVB lodged a statutory appeal against the CA’s decision on the investigation with the CE in C in October 2013 and filed an application for judicial review on the appeal mechanism under the BO and the CA’s decision on the investigation in December 2013. We will assist the CA in responding to the statutory appeal and judicial review according to the established procedures.

Review of Codes of Practice

We assist the CA in conducting regular reviews of the codes of practice to provide proper guidance to broadcasters on programme, advertising and technical standards. During the year under review, the CA completed a review of the regulation of editorial programmes and personal view programmes (“PVPs”), and approved amendments to the television and radio programme codes of practice. The major amendments included that editorial programmes which contained the views of the licensee and persons exercising control of it (“persons providing the service”) on matters of public policy or controversial issues of public importance in Hong Kong should be regarded as a type of PVPs and be subject to existing ground rules on PVPs; a suitable announcement should be made at the start of the programme to identify clearly that the views expressed in the editorial programme were or included those of the persons providing the service; and that a suitable opportunity for response to a PVP should be provided on the same platform. The new rules took effect on 1 July 2014.