China's media watchdogs have launched a crackdown on interactive television, radio, and Internet programs that raise money from their audiences through scams.
The Ministry of Information Industry (MII) said the campaign would focus on eliminating programs such as fortune telling, horoscopes, and gambling that lure participants into costly interactive services.
Interactive services, like text messaging, have become cash cows for many Chinese media organizations.
The authorities have received many public complaints of services such as "live" programs that have actually been prerecorded, so that when viewers ring expensive competition lines, machines answer the calls.
Some programs are genuinely live, but employ other tricks, such as a lengthy introduction to the service and fictitious winners to prolong call times.
The MII has ordered telecommunication operators to survey firms that provide "value-added" services such as text messaging and teleconferencing services, and report to the ministry by August 31st, after which the MII will carry out random investigations.
Although the MII circular details no penalties for operators if they miss the deadline, the sector is under pressure. "The MII move will affect about 30 percent of our business," said one industry insider.
Professor Kan Kaili, of the Economics and Management School of Beijing University of Posts and Telecommunications, said, "Telecom operators play a key role in this campaign as the money charged in these programs flows through them, and if they stop charging consumers for these services, the income sources of the services are stopped.”
The State Administration of Radio and Television has released more than ten similar regulations since 2006, but they have had little effect.
"We have only six national telecom operators, but they profit from these services and they may not follow the MII's instructions," he added.
(Xinhua News Agency August 10, 2007)
