The Chief Executive in Council has granted PCCWVOD Limited a licence for a channel-based pay TV service. It will be valid for 12 years from September 26.

The CE in Council also accepted the surrender of the firm's existing service licence from September 26.

This licence was first granted to the company (previously known as Hongkong Telecom VOD Limited) in 1998 under the repealed Television Ordinance to provide an interactive video-on-demand programme service.

With the enactment of the Broadcasting Ordinance in July 2000, the licence is deemed to be a domestic pay television programme service licence granted under the ordinance.

The new channel-based television service will be delivered over fixed telecommunications broadband network based on the asymmetrical digital subscriber line technology.

Subscribers may choose to subscribe individual television channels or a range of channels on an a la carte basis.

In October 2000, when PCCW took over the Hong Kong Telecom group of companies, the CE in Council approved Richard Li, a disqualified person under the Broadcasting Ordinance, to exercise control of PCCWVOD, subject to a set of conditions.

In connection with the grant of the new licence, the CE in Council approves Mr Li to continue to exercise control of PCCWVOD.

The Commerce, Industry & Technology Bureau said the Government's broadcasting policy objective is to encourage competition, investment and innovation in the sector to widen viewers' choice.

The new channel-based television service provided by PCCWVOD will offer a new choice of pay television service to consumers and make such service more customised to their needs.