The Hong Kong government has given in principle approvals for free-TV broadcast licences to I-Cable’s Fantastic TV and Hong Kong Television Entertainment (HKTVE) backed by pay TV giant, PCCW. However the biggest surprise was in the fact City Telecom, which has been working hard to break into the broadcast industry was denied a licence with no explanation from the government.
Gregory So, Secretary for Commerce and Economic Development said, “The decision introduces competition and increases program choice and diversity, but at the same time minimizes the risk of any possible adverse impact on the free TV market as a whole.” Once they get the formal approval both Fantastic TV and HKTVE will have one channel running within a span of one year.
However public outcry has followed City Telecom not being given a licence. CEO Ricky Wong said that it was the government who had played a crucial role in getting the company involved in the first place. He said, ”In 2009, the government called me to invite me. On December 31, 2009, we submitted the application. We are the most qualified among the three applicants. We focus on entertainment, which is what Hong Kong lacks.” Due to the decision taken by the government, City Telecom’s Hong Kong Television Network (HKTV) had to lay off 320 of its 500 staff.
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