Television broadcaster Sun Media has scrapped a joint venture with a Taiwanese company after admitting to mainland regulators that the deal violated conditions of its restricted landing rights in China. The company said in an announcement yesterday that China's State Administration Radio, Film and Television (Sarft) had restored its landing licence and broadcasting of its Sun TV channel had resumed on April 30. 'The resumption was made on the basis and understanding reached with Sarft in early April 2003 that Sun TV will not broadcast programmes from Eastern Broadcasting Company (ETTV) . . . until further notice,' Sun Media said. Sun Media shares tumbled 16.66 per cent to close at 4.5 HK cents when trading resumed yesterday. Last month, Sarft suspended landing rights for Sun Media's two channels - Sun TV and Jet TV - in selected hotels and compounds after saying the main board-listed firm had breached regulations by establishing a programming joint venture with ETTV. 'The board also clarified that the co-operation with ETTV for setting up a joint venture will not proceed due to commercial reasons,' Sun Media said, denying it had signed a formal agreement with ETTV. Sun Media said it had been told by Sarft that the broadcasting of Jet TV would resume soon. The case is being seen as a clear warning to foreign broadcasters that violation of landing rights agreements will result in the loss of licences. It also shows the government can control distribution of TV signals through the central platform managed by the China International Television Corp. 'All the foreign TV channels are broadcasting through our platform to three star or above hotels,' said China Radio Film and Television Group general manager Li Jian.
