The Chief Executive-in-Council has approved TVB's application for a temporary waiver of restrictions on its ownership of Galaxy Satellite Broadcasting.

The waiver will last 12 months from December 28, allowing TVB to take up Intelsat's 51% interest in Galaxy and become its single shareholder. TVB needs to divest more than 50% of its interest in Galaxy before the waiver expires to resume compliance with the licence conditions on ownership.

The Commerce, Industry & Technology Bureau said the approval was granted taking into account public interest, the development of the broadcasting industry, and the integrity of the licensing regime.

The waiver will also contribute to maintaining a more competitive marketplace if Galaxy is able to compete for subscribers by extending service coverage and adopting more aggressive pricing and programming strategies.

During the waiver period, the operation of Galaxy will continue to be subject to the firewall provisions under the TVB and Galaxy licences.