CCTV Targets Handset Vendors and SPs in Expose
Netease Tech, 3/15/10
On a CCTV television expose marking yesterday's World Consumer Rights Day, it was revealed that handsets manufactured by several brands including UTStarcom (Nasdaq: UTSI), Telsda, Amoi, and Comoo ship with pre-installed applications that automatically deduct money from users' calling credit without consent. According to the report, some handsets are installed with "timed message delivery" software that will automatically send SMSs from users' phones to charge them even if they do not click on paid services.
The CCTV investigation discovered that once money has been illegally collected from users, the wireless value-added service provider (SP) will share a cut of revenues with the mobile phone solution provider, or both the mobile phone solution provider and the mobile phone manufacturer. Mobile music provider A8 Music (0800.HK) was among the service providers named as participating in this illegal fee collection scheme.
Editor's Note: The expose also covered other industries including computers and television. For more information, please see "CCTV Exposes HP Notebook Defects," MD 3/16/10 issue.
Keywords: Comoo handset illegal wireless SP A8 CCTV pre-installed Telsda UTSI UTStarcom 0800.HK Amoi 600057.SH WVAS scam scandal
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