China's government has punished more than 30 mobile firms that sent spam text
messages tricking users into signing up for expensive services, local media
reported yesterday, citing sources at China's Ministry of Information Industry.
The firms include leading internet and mobile services company
Tencent.
Reports did not provide details of the offences or punishments.
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In similar cases in the past, companies have been fined or even barred from
offering certain services for a short length of time.
The latest round of punishments is not the first run-in with the law for
wireless value added service providers in China.
Last year, the government responded to a growing chorus of user complaints
about unfair practices by changing the rules under which third-party providers
can sell services over mobile networks.
Many customers said they were charged for mobile information services and
downloads to which they had not agreed, or that their attempts to cancel
expensive services were ignored.
With the introduction of the new rules, customers must receive clear and
repeated warnings when they sign up for a new mobile service. This appears to be
one of the rules broken in the latest wave of government sanctions.
Initially users were also mandated a one-month free trial of new services,
but this regulation was discontinued after a few months.
Some mobile service providers have been severely hit by the government
crackdown. Tom
Online's parent company, for example, is attempting to delist it from Hong
Kong's stock market after its revenues slumped.
More broad-based firms have weathered the storm, however. Tencent, which
operates China's most popular IM service, reported revenue from mobile and
telecoms value-added services of $25.4m in the first quarter, a 20 per cent
increase compared to a year earlier.
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