(The present Provisions shall come into force on December 1, 2003.)
Chapter 1. General Provisions
Article 1. These Provisions are formulated in accordance with the Regulation on the Administration of Radio and Television for the purpose of promoting and regulating the healthy development of radio and television cable digital pay channel services and for the lawful rights and interests of commercial entities and users of radio and television cable pay channel services.
Article 2. The Provisions shall apply to the establishment, broadcasting, integration, transmission, accessing, service, and supervising activities of radio and television cable digital pay channel services (frequency) (hereafter referred to as "pay channels") within the People's Republic of China .
Article 3. The pay channels in the present Provisions shall refer to the professional radio and television channels broadcast and transmitted through cable digital methods and for which listening and watching are paid for separately..
The commercial institutions for integrating pay channels shall refer to the approved institutions engaging in the integration, broadcasting, and agency sales of the pay channels.
The transmission commercial institutions for pay channels shall refer to the institutions using national and provincial cable trunk networks to engage in pay channel transmission.
The commercial institutions for consumers' access of pay channels shall refer to the institutions using radio and television distribution networks to engage in providing consumer access services for pay channels.
Article 4. China's State Administration of Radio, Film, and Television shall take charge of the overall planning for the national pay channels, ensuring the total number, making the overall arrangement and construction of the pay channels, and being responsible for the supervision and management of the national pay channels. The local administrative departments of radio and television shall take charge of the supervision and management of the pay channels within their jurisdiction.
Article 5. The commercial activities of the pay channels shall be in accordance with the Constitution and the relevant laws and regulations to uphold the correct guidance of public opinion to promote and develop an advanced culture and to resist development of a decadent culture; to provide services with healthy content at reasonable prices compatible with national standards and industrial standards and norms.
Article 6. The activities of the pay channels shall assume cost accounting and sole responsibility for their profits or losses, operate under the industrial means, and foster market operations to promote the building of a socialist spiritual civilization, in conformity with the economic laws of a socialist market and the development laws of radio and television.
Article 7. Institutions established by Chinese-foreign equity joint ventures, cooperative joint ventures, and exclusively foreign-owned enterprises are prohibited from engaging in the operation, broadcasting, integration, transmission, and access of pay channels.
Chapter 2. Establishment and Operation
Article 8. The establishment of a pay channel shall be approved by China's State Administration of Radio, Film, and Television; no unapproved organization or individual shall be allowed to establish a pay channel. The following institutions may apply, either separately or jointly, to establish a pay channel:
(1) Institutions of the central government, provinces, provincial capitals, and municipalities listed separately under the state plan..
(2) Approved radio, film, and television groups (master stations)
(3) Other specially approved central radio, film and television institutions and other central units with monopolies over program contents.
Article 9. The establishment of a pay channel shall meet the following conditions:
(1) Being in conformity with the overall nationwide development planning for pay channels.
(2) Having feasible plans for research, a plan to professionalize the channel, and an industrial management plan
(3) Having management funds, technical equipment and systems, professional technicians and ---- work sites appropriate for a pay channel service
(4) Having the capacity to produce programs and to engage in censorship and having the relevant resources
(5) Having the competence and reputation for long-term service for consumers
(6) Conditions for cooperation shall be in accordance with the present Provisions
(7) Other conditions in accordance with the present Provisions
Article 10. The institutions within China, with the following conditions, may participate in the cooperation of a pay channel, but they are excluded from establishing a pay channel:
(1) State-owned institutions with monopoly resources over program contents
(2) Radio, film, and television institutions established by law
(3) Institutions established by law without foreign-related capital but registered capital in excess of 15,000,000 yuan , and net assets in excess of 3,000,000 yuan .
The above institutions participating in the cooperation of a pay channel shall sign with the establishing institution a contract that agrees on the profit-sharing from participation and stipulates that the establishing institution will enjoy and exercise the rights of program layout, censorship, and broadcasting, as well as ownership of the brand and other intangible assets belonging to the pay channel.