Communications Authority Press Release (June & July)

This press release summarises the outcome of the Communications Authority (“CA”)’s deliberations in June and July 2012:

Digital Terrestrial Television Coverage extended to 99% of Population by Third Quarter of 2013

The CA approved the applications of Asia Television Limited (“ATV”) and Television Broadcasts Limited (“TVB”) to extend the period for exemption from the territory-wide coverage of their digital terrestrial television (“DTT”) services up to 31 December 2013, subject to the condition that the DTT services should extend to cover at least 98% of the population by 31 December 2012, and to further extend to be on a par with that of analogue television services which is at least 99% of the population by 30 September 2013. 

The licensees are also required to submit to the CA a progress report by 28 February 2013, setting out the progress they have made and if the progress is unsatisfactory, a detailed plan of alternative measures with a view to achieving the 99% coverage target.  The CA will closely monitor the performance of the two licensees to ensure their compliance with their implementation plan to achieve the coverage target.

Section 18(1) of the Broadcasting Ordinance (Cap. 562) (“BO”) requires ATV and TVB (the licensees) to provide their television programme services in such manner as to enable their services to be received throughout Hong Kong to the satisfaction of the CA.  Section 18(2) of the BO empowers the CA to exempt the licensees from providing coverage to certain parts of Hong Kong.

Since the launch of their DTT services on 31 December 2007, the licensees have been progressively expanding their digital transmission networks.  By end 2011, the licensees had constructed a total of six principal stations and 23 fill-in stations and had achieved DTT coverage of at least 96% of the population by then.  The licensees now plan to increase the transmitting power of 17 fill-in stations and conduct coverage validation surveys in order to further extend their DTT coverage.  Subject to the field validation results, the DTT coverage is expected to reach at least 98% of the population before end of 2012 and to rise further to at least 99% of the population by the third quarter of 2013, which is on a par with that of analogue television broadcasting.

The above exemption is specific to the licensees’ DTT coverage. The two licensees will continue to be required to provide their analogue television services on a territory-wide basis to the satisfaction of the CA.

Other Licensable Television Programme Service Licence

The CA approved the applications of Marriott Hong Kong Limited and Royal Park Hotel Management Limited to surrender their other licensable television programme service licences with effect from 13 February 2012 and 22 May 2012 respectively.  The CA noted that the surrender of licences were commercial decisions of the two licensees.  Following the surrender of these two licences, there are 26 other licensable television programme service licensees providing television programme services to hotels in Hong Kong.

Telecommunications Network Outage Cases

The CA considered the following two outage incidents concerning telecommunications networks –

 (a)

The outage of the network of SmarTone Communications Limited and SmarTone Mobile Communications Limited (collectively “SmarTone”) on 9 April 2012, causing disruption to its mobile voice services, mobile internet services, short message services and some data services (including mobile content services, voice mail services and stock quotes services). The Office of the Communications Authority (OFCA) conducted an investigation into the incident.  After considering the assessment of OFCA, the CA concluded that SmarTone had not complied with General Condition 5.1 of its licences, requiring it to operate, maintain and provide a good, efficient and continuous service in a manner satisfactory to the CA. Having considered carefully the circumstances of the case and taken all factors into account, the CA concluded that a financial penalty of $130,000 imposed on SmarTone is proportionate and reasonable in relation to the breach. For details, please refer to the CA’s Decision which is published on the CA’s website.

 (b)

The outage of the network of PCCW-HKT Telephone Limited and Hong Kong Telecommunications (HKT) Limited (collectively “HKT”) on 13 April 2012, causing disruption to its residential and commercial broadband services, Now TV services and One Communications services *.  OFCA conducted an investigation into the incident.  After considering the assessment of OFCA, the CA concluded that there has been no breach by HKT of General Condition 5.1 of its licence, requiring it to operate, maintain and provide a good, efficient and continuous service in a manner satisfactory to the CA. For details, please refer to the CA’s Decision which is published on the CA’s website.

Complaint Cases

The CA considered three complaint cases in respect of the broadcasting licensees’ non-compliance with the relevant codes of practice on programme and advertising standards –

 (a)

a complaint against the television programme “South Weather Forecast” (南方氣象) broadcast on the TVS Channel of ATV on 3 November 2011.  The CA decided that ATV should be warned to observe more closely the relevant provisions in the Generic Code of Practice on Television Programme Standards (“TV Programme Code”) and the Generic Code of Practice on Television Advertising Standards (“TV Advertising Code”);

 (b)

a complaint against the television programmes “6:00 News” (六點鐘新聞) & “Late News” (夜間新聞) broadcast on the Home Channel of ATV on 15 November 2011.  The CA decided that ATV should be strongly advised to observe more closely the relevant provision in the TV Advertising Code; and

 (c)

a complaint against the radio advertisement for “Marinella” (“深灣9號”廣告) broadcast on the Metro Finance Channel of Metro Broadcast Corporation Limited (“Metro Radio”) in October 2011.  The CA decided to classify the complaint as a minor breach.

Further details of the above complaint cases are available in the Appendix.

Communications Authority
Secretariat

11 July 2012

* One Communications services offers integrated solution to business customers, including broadband services, Wi-Fi services, business telephony (i.e. voice over IP) services, unified-messaging services and fixed/mobile convergence features.  For details, please refer to http://www.pccwone.com/eng/Product_ip.html.

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