Some underground companies are selling satellite TV receivers in Guangzhou, an act the government says is illegal.

The companies claim that with the receivers, television viewers can receive more than 200 overseas channels, including several adult channels.

Many residents reported receiving advertising leaflets offering satellite receivers for 3,000 yuan (US$366) each. The advertisements also say buyers do not need to pay for overseas channels.

Installing satellite receivers without permission from authorities was illegal, said a spokesman for the Administration of Press, Publication, Radio and Television of Guangzhou.

According to the satellite TV receiver management regulation, promulgated by the State Council in 1993, only nationally recognized two-star or above foreign-related hotels and apartments can apply for the purchase and installation of satellite TV equipment.

People who installed satellite TV receivers without permission would be fined while illegal retailer faced criminal charges, said the spokesman.

An investigation by the Guangzhou Daily found that companies selling satellite TV receivers were controlled by a Taiwan-based company that did not have a business license. The company address on the leaflets did not exist.

Mr. Zhuang, a resident in Tian'he District, bought a satellite TV receiver in summer. While the receiver worked well for the first two months, after which there was no signal. The retailer told Zhang the receiver could not receive signal because of haze.

Insiders say many overseas satellite channels, especially adult channels, are pay channels. The illegal retailers usually gain access to these by stealing the access codes. However, the administrators of the channels often change codes to avoid theft, removing access for illegal receivers.

Shenzhen Daily