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SP Business Suspended for Spamming

Sohu IT, 3/18/08

According to an informed source, two wireless value-added service providers (SPs) have recently been punished by China Mobile (NYSE: CHL; 0941.HK) for sending unsolicited SMS. One case, involving service-provider Zhongrun Hulian IT, centered around the mass sending of WAP Push messages. China Mobile has reduced Zhongrun Hulian's credit rating by 20 points, will not allow the company to start any new services, has stopped calculating fees for all its services, has dropped all its service offerings to the bottom of the service listings, and will not allow new subscriptions to the offending service for three months.

Yesterday reports claimed that some Focus Wireless subsidiaries' SP licenses may be affected by the sending of spam SMS. Although Focus Wireless pointed out it is not an SP, informed sources say it has purchased a number of SP firms.

One source within the SP sector said that there are still many loopholes allowing the mass sending of SMS, such as taking a controlling stake in a number of SPs - meaning that operators are unable to keep up and the loss of one or two will not affect overall business.

Keywords: WVAS penalty Zhongrun Hulian IT WAP Push Focus Media FMCN 0941.HK China Mobile CHL Focus Wireless SMS SP spam WAP wireless

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