Hong Kong’s new rules for its first...

Hong Kong’s new rules for its first cable-TV system allow foreign companies to participate, but only on a limited basis. The Hong Kong government said it will begin accepting bids for the programming license Sept. 1 from foreign and domestic companies. However, it is limiting foreign ownership in such a franchise to 49%, and each foreign investor is allowed to hold no more than a 10% interest.

In contrast, bidding is open to foreigners with no restrictions to build facilities for the cable system, which is expected to reach 1 million homes.

The programming license will be valid for 15 years but will be exclusive for only the first three years, after which the Hong Kong government may decide whether to license a second cable-TV system.