Communications Authority denies TVB request to expand its existing range

The Communications Authority has allocated free-to-air television newcomer Hong Kong Television Entertainment (HKTVE) half of Asia Television's (ATV) digital spectrum range - upon expiry of the latter's license.

The authority's decision was announced by Secretary for Commerce and Economic Development Gregory So Kam-leung on Friday.

The statutory body denied a similar request by entrenched market leader Television Broadcasts (TVB) to expand its existing spectrum range. Instead, it awarded the soon-to-be vacated spectrum to Now TV's HKTVE - pending further conditions set by the authority.

It took an administrative route rather than a market-based approach in assigning the spectrum. It cited as factors public policy, practical difficulties, the implications of viewers' programming choices and competition as well as the importance of a level playing field.

The authority ruled against TVB's application because it deemed the station's spectrum allocation sufficient. It said HKTVE should receive priority given that it had around eight months to begin operations before the city was left with a single free-TV licensee following ATV's exit.

The move when finalized will remain in effect until the end of HKTVE's free TV license on March 31, 2027.

The government's decision to award only half of ATV's digital spectrum meant sufficient range remained for at least three more channels, Chinese University of Hong Kong Journalism Professor Grace Leung Lai-kuen said.

"The government is indicating there is still room for new players in the market, such as i-Cable, HKTV and a consortium formed from former ATV backers," she said.

Hong Kong's only remaining free-to-air television broadcaster will also be joined by RTHK's entry into free-to-air television business when it subsumes ATV's analogue channel. Meanwhile, contenders i-Cable Communications' Fantastic Television and Hong Kong Television Network still await license approval.

Only free TV licensees are eligible for leftover spectrum which will only be allocated in accordance with their respective licensed service needs.

Together with TVB, ATV - Hong Kong's oldest Chinese-language broadcaster - ruled Hong Kong television for decades, but ATV in recent years has steadily lost market share to the now dominant TVB.

ATV suffered years of declining program quality and audience ratings. The station's last days were numbered when Chief Executive Leung Chun-ying decided its broadcasting license would not be renewed after expiring on Nov 30 this year.

Hong Kong will complete its move to a digital network when the analogue broadcasting system finally shuts down by 2020.

tim@chinadailyhk.com

(HK Edition 08/01/2015 page3)