Locally listed Internet company Prosper eVision yesterday launched its ninth Internet venture in China using cable television-based networks - despite the lack of clarity in regulations governing foreign participation in the cable industry.

The latest high-speed Internet multimedia venture - Fujian Yingcheng Television Broadcasting Network Development - was set up in Fujian province.

Prosper eVision will hold with its ultimate parent company, CVN Group, 49 per cent of the venture, while the mainland partners will have 51 per cent. Prosper eVision alone will have an effective 16 per cent.

Chief executive Chiu Chiu-wing yesterday said the company had received approval from the Fujian Provincial Broadcasting and Television Bureau to set up the venture.

It is authorised to upgrade the province's cable television network to enable high-speed digital data transmission, broadcast multimedia content and carry out e-commerce, according to approval documents.

However, Fujian Province Broadcasting Authority deputy chief Yong Xing, who attended the launch, said the business scope of CVN's joint venture was limited to the provision of content.

CVN had signed similar joint-venture agreements with the broadcasting bureaus of eight other provinces, Mr Chiu said.

With the convergence of broadcasting, telecommunications and the Internet, questions have been raised as to which government department regulations CVN has to follow.

CVN's multimedia venture allows cable television users to surf the Internet, receive and write e-mails and receive video and music on demand.

Mr Chiu said CVN's venture should be regulated by the State Administration of Radio, Film and Television, as the Internet venture was on cable networks.

However, it may be a grey area over which the Ministry of Information Industry may claim jurisdiction, as CVN's venture involves Internet access service provision.

According to a bilateral agreement between China and the United States in World Trade Organisation talks last November, foreign investors would be allowed to take less than 30 per cent of Internet-related ventures upon China's WTO entry.

The maximum allowable percentage will be increased to 49 per cent in one year and 50 per cent in two years.

The Fujian joint venture charges a monthly access fee of 100 yuan (about HK$93.60) for the multimedia service - giving access to more than 100 channels, while additional content can be viewed on a pay-per-view basis.

At present, cable television subscribers in the province are charged 13 yuan a month for a basic service with 30 channels.

CVN Group is the parent of China Convergent Corp - listed in the United States, Germany and Australia. China Convergent in turn is a unit of Prosper eVision.

China Convergent paid US$1.7 billion for 67 per cent of CVN Group's fledgling multimedia venture after Prosper eVision acquired a 33 per cent stake last year.

(South China Morning Post)