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SCMP Reporter

Phoenix Satellite Television Holdings' 24-hour news channel has been denied the right to broad cast in Taiwan because its programmes were 'unfriendly to the Taiwanese Government', according to the island's broadcasting authority.

'The company has violated our regulations, therefore we have to terminate their application,' said an official at the

Government Information Office (GIO), Taiwan's broadcasting authority.

The GIO said Phoenix TV applied in September for the right to beam its InfoNews channel's signal into Taiwan, but the application was rejected.

Industry experts said the Growth Enterprise Market-listed Phoenix TV was the first foreign satellite operator to be rejected since the introduction of regulations three years ago.

The official said Phoenix TV promised InfoNews would be fair and balanced when reporting on the Taiwanese Government. 'But from what we've seen, their reports were not being fair and objective,' he said.

Phoenix TV chief financial officer K.K. Yeung confirmed the company's application for landing rights in Taiwan had been rejected but added it had appealed against the decision.

A domestic Taiwan cable TV channel was carrying a few hours of InfoNews' programmes daily earlier this year, but it had now stopped, Mr Yeung said.

A second GIO official said the way Phoenix TV's reports addressed Taiwanese leaders was politically incorrect.

'They addressed us as 'the Taiwanese Government', 'the Taiwanese leader', while calling Jiang Zemin President Jiang Zemin. We found this very offensive,' he said.

The government was also upset by some of InfoNews' commentary programmes, as they were 'unfriendly to the Taiwanese Government'.

'We're rather relaxed towards domestic media . . . But we can't bear foreigners entering into our house and scolding us,' he said.

Phoenix and analysts said Taipei's decision had no material financial impact on Phoenix.

'Given that many channel providers in Taiwan are losing money, I don't think the Taiwan market was crucial to Phoenix,' said Salomon Smith Barney regional media analyst Norman Waite.

'It would have been nice if they got it, but what matters most is whether they can start getting distribution for InfoNews on the mainland.'

Mr Yeung said the revenue contribution from Taiwan was minimal.

Shares in Phoenix TV finished unchanged yesterday at 93 HK cents.

Industry sources said Taiwan's rejection of Phoenix TV's application was revenge aimed at Beijing, as the Chinese Government had rejected Taiwanese TV operators' applications for mainland landing rights.

Phoenix TV has been viewed by Taipei as a mainland operator because of chairman Liu Changle's close connection with China's State Administration of Radio, Film and Television and because of his military background.

The Taiwanese Government allows domestic cable TV operators to carry the China Central Television's Channel 4, but Taiwan newspapers have reported it might pull the plug on China's flagship broadcaster early next year.

However, the first GIO official said nothing had changed regarding the Channel 4 issue as of yesterday.



Government slams cross-strait news coverage as unfriendly and politically incorrect