The Chief Executive in Council has approved in principle Wave Media's application for a 12-year licence to establish and maintain a 24-hour Cantonese AM radio channel.

The Commerce & Economic Development Bureau said the launch of a new sound broadcasting service will benefit the local broadcasting industry and the economy. It will introduce more competition in the radio market, increase programming choices for the audience, promote research and development of new broadcasting technology, create job opportunities and train new talent.

The application meets statutory requirements, including those relating to the Hong Kong residency requirement and cross-media ownership restrictions. The company is assessed to be financially capable of establishing and maintaining the service. It has voluntarily committed to provide a performance bond of $2 million to safeguard construction of the transmission network and the rollout of service within two years from the grant of licence.

At the frequency of AM 810kHz, the service will be managed by personnel with broadcasting expertise and experience. Public views the Broadcasting Authority received also generally support the company's proposed introduction of a new radio channel in Hong Kong.