Global broadcaster MTV Networks will expand into Internet and mobile value-added services in China, according to a top executive with the US-based firm.

"I am not discouraged, but encouraged by what is happening in China," said William Roedy, vice-chairman of MTV Networks and president of MTV Networks International.

There are more than 340 million families with access to TV broadcasting, over 400 million mobile phone users and 111 million Internet users in China.

These figures are expected to continue growing in coming years, with more demand for value-added services.

MTV, the entertainment channel that is owned by media giant Viacom, is aired in the Pearl River Delta in South China and a number of luxury residences and hotels in other parts of the country.

It also has a production joint venture with Shanghai Media Group.

Although China has allowed foreign broadcasters to establish joint ventures relating to content production, broadcasting is still forbidden.

Another global media giant, News Corp, did gain indirect control of a satellite TV channel in Northwest China, but it was told last year to drop the project.

Rupert Murdoch, chairman of News Corp, said last September that his company had "hit  a brick wall in China."

A report by the Financial Times newspaper in February said News Corp might withdraw its stakes in Hong Kong-based Phoenix TV, which is the most successful overseas channel on the Chinese mainland.

Roedy said China should not only be regarded as a market to make money, but also as a good location for research and development.

This could allow MTV to use the experience of China's digital media businesses in other markets.

Roedy told Chinese media at an interview that his company would launch broadband services "very soon," as China has the second largest Internet population, second only to the United States.

He said services could be conducted either in partnership with local firms or through acquisitions.

The broadcasting giant has already acquired four Internet companies in recent years, as it builds a converged media empire that includes TV, mobile phones and the Internet.

News Corp also tried to acquire a leading Chinese online firm late last year, but it gave up due to the high price.

MTV also aims to upgrade its co-operation with China Mobile, the world's largest mobile carrier in terms of subscribers.

Last year, the two companies agreed to offer MTV content to China Mobile users in the form of ring tones, music and picture downloads.

Roedy said that as China is about to launch third-generation mobile systems, which have much bigger bandwidth, the two companies will talk about launching services such as video streaming to phone users.

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