| Licensing and Ownership
Regulation
Renewal of Television Programme Services Licences
The Authority renewed seven other licensable television programme
service licences for the provision of television programme
service in hotel rooms in Hong Kong during the period under
review.
Foreign Ownership
With the objective to encouraging investment in the broadcasting
industry, the existing regulatory regime allows foreign ownership
of a licensee company except that persons and companies exercising
voting control of a domestic free television programme service
licensee are subject to certain residence requirements25
to ensure that Hong Kong viewers' taste and interests are
safeguarded. In May 2007, the Authority approved an application
of ATV for changes in its shareholding structure involving
unqualified voting controllers ("UVCs"), i.e. voting controllers
who do not meet the residence requirement under the BO. The
Authority's approval is subject to the condition that ATV
shall, among others, continue to be bound by the statements,
representations, assurances and undertakings in its application,
including the undertaking by the relevant new shareholders
to uphold the editorial independence of ATV.
Sales Practice of Domestic Pay Television Programme Service
Licensees
At present, the BO and the BAO do not empower the Authority
to regulate the sales activities and contractual matters of
domestic pay television programme service licensees. However,
the licensees are required to comply with the terms and conditions
of their licences, including the requirements to prepare a
code of practice on customer service, to receive and consider
complaints and comments, and to report such cases to the Authority.
Even though such complaints are outside the Authority's jurisdiction,
the BA Secretariat will refer the cases to the concerned licensees
for investigation and follow-up if the complainants so agree.
In general, the licensees treat the complaints referred to
them by the Authority seriously and, so far, the Authority
has not received any complaints about the licensees' handling
of the Authority's referrals.
In June 2007, there was an upsurge of complaints on sales
practices and contractual matters of domestic pay television
programme service licensees. A majority of such complaints
were related to difficulties encountered by subscribers when
trying to terminate the service of a pay television licensee.
The BA Secretariat met with the senior executives of the licensee
in June 2007 to express the Authority's concerns and discussed
with them how to enhance self-regulation in this aspect. Subsequently,
the licensee put in place its own administrative measures
to address the problems. For example, the licensee has made
available service termination forms at its website and replaced
door-to-door sales activities in retail stores to provide
customer service. The complaints about pay television licensees
received by the Authority declined from 242 in June 2007 to
54 in July 2007. The Authority will continue to monitor the
situation closely.
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Under section 1 of Schedule 1
to the Broadcasting Ordinance, in the case of a corporation,
a qualified voting controller has to be ordinarily resident
in Hong Kong.
"Ordinarily resident in Hong Kong" means -
(a) |
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in relation to an individual,
residence in Hong Kong for not less than 180 days
in any calendar year, or residence in Hong Kong
for not less than 300 days in any two consecutive
calendar years; |
(b) |
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in relation to a corporation,
a corporation which satisfies the following -
(i) |
if the number of directors
who actively participate in its direction
-
(A) is 2, each is an individual;
(B) is more than 2, each of a majority of
them is an individual,
for the time being ordinarily resident in
Hong Kong in accordance with paragraph (a)
and has been so resident for at least one
continuous period of not less than seven
years; and |
(ii) |
the control and management
of the company is bona fide exercised in
Hong Kong. |
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