China plans to launch a satellite for broadcasting service in first half of 2006, said the State Administration of Radio, Film and Television.

The satellite is expected to provide service to 260 million Chinese families, said Zhang Haitao, vice-minister of the administration at the 21st Century Broadcast Media Summit held Sunday.

China has about 360 million households -- 100 million of which now receive cable TV programs. The rest will be a potential audience of satellite broadcasting, he said.

China will have to appropriately adjust its policy and formulate rule and regulations in a bid to start satellite broadcasting business, Zhang added.

Currently the country forbids individuals to receive satellite TV programs by their own satellite receivers.

In July this year French-based Alcatel announced in Shanghai that it will produce a broadcasting satellite, known as "Chinasat 9," for the China Satellite Communications Corp. (China Satcom).

With the satellite, China Satcom will be the first Chinese company to provide a satellite broadcasting service in China, scheduled to start in 2006.