China's media watchdogs have launched a crackdown on interactive programs on TV, radio and the Internet that raise money from their audiences through telecoms 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, such as TV and 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, they are answered by machines.
Some programs are live, but employ other tricks, such as lengthy service introduction to prolong call times and fictitious winners.
The MII has ordered telecommunication operators to survey firms that provide "value-added" services such as text messaging and teleconference services, and report to the ministry by Aug. 31.
Then the MII will conduct 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 regulations of this sort since 2006, but to little effect.
"We have only six national telecom operators, but they profit from these services and they may not follow the MII's instructions." (one U.S. dollar is equal to 7.56 yuan)
Source: Xinhua
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