A local bureau of China's State Administration of Radio, Film and Television (SARFT) has fined China Telecom's Yichang City branch in Hubei Province for illegal Internet protocol television (IPTV) operations, an industry Web site reported on Oct. 22.

According to the report by SARFT.net, a SARFT-supported Web site, China Telecom's Yichang City branch had provided IPTV services to city hotels without SARFT permission.

In turn, the Yichang Broadcasting Bureau asked China Telecom's local branch to cease its illegal IPTV transmissions immediately and levied an unspecified fine.

Under Chinese laws and regulations, companies are required to obtain four licenses before starting IPTV operations. The most important license is the IPTV license, which covers program publication via the Internet and other information networks, such as television.

The other three licenses are the Internet content provider license and mobile value-added service provider license, both granted by the Ministry of Industry and Information Technology (MIIT), and the Internet culture business license, granted by the Ministry of Culture.

In addition, local telecom operators like China Telecom's Yichang City branch are only allowed to offer IPTV in cooperation with national IPTV license holders.

Six companies currently hold IPTV licenses, namely CCTV, Shanghai Media Group, Southern Media Corp., Zhejiang Radio and Television Group, Huaxia Network and China Radio International. Privately owned Huaxia Network has been given approved to start national IPTV operations, while Zhejiang Radio and Television Group has been granted a license for offering IPTV services solely in Zhejiang Province.

SARFT has previously cracked down on telecom operators in Heilongjiang Province and Fujian Province for operating IPTV services illegally.

Analysts told Interfax previously that a conflict of interest between local broadcasters and telecom operators on the provision of IPTV services is hindering the development of China's IPTV market.

Source:INTERFAX-CHINA