TMCnet News
NTC buckles, clarifies memorandum circular on mobile text spamJul 23, 2009 (The Manila Times - McClatchy-Tribune Information Services via COMTEX) -- Mobile phone content providers announced they would pull out their appeal before the two regional trial courts to bar government from prohibiting broadcast advertising or push messages after the National Telecommunications Commission (NTC) clarified some provision of the circular. G Gateway Mobile Phil.'s Inc. and Rising Tide Entertainment Inc. (RTMEI) filed a restraining order against the commission in Pasig and Quezon City, claiming that Memorandum Circular 04-07-2009 is "invalid and unconstitutional." In a statement, John Alonte, chief executive of G Gateway Mobile Phil.'s Inc., said they were initially wary about certain provisions in the circular, particularly one that allows the regulator to disconnect a content provider from the network pending investigation. In Memorandum Order 08-07-2009 issued by the commission on Wednesday, the regulator clarified Section 7 of the circular, which stresses that "the order to disconnect should only be issued after due notice and affording the concerned party the opportunity to be heard commenced by the issuance of a show cause order." The clarificatory circular came after a Tuesday meeting at the Senate with content providers of the telecommunication companies, or telcos. "We are very grateful to . . . [Senate President Juan Ponce] Enrile and Commissioner Canobas as well as the other commissioners of the NTC for hearing our concerns and providing us with an opportunity to thresh out our key concerns on the Memorandum Circular," Alonte said. Push messages The commission's order also insisted that push messages or broadcast advertising was prohibited, but the regulator clarified that "after the subscriber has completed his act of subscription, the delivery of the subscribed content or service should no longer be deemed a push message." The regulator added that commercial and promotional advertisements, surveys and other broadcast messages should be allowed only upon prior written consent by the subscribers. "We strongly support the current thrust of both Senate and NTC to solve the problem in order to protect, first and foremost, the public interest," Alonte said. "We will continue our dialogue with the NTC and will provide our cooperation with the regulatory body's ongoing efforts to protect the welfare of the general public," he added. Value-added service providers, such as Rising Tide Entertainment and G Gateway, rely heavily on push messaging for the delivery of their services. The content providers added that push messaging plays a significant role in inviting potential subscribers to avail of its services. Rising Tide Entertainment, in its petition before the Quezon City court, said the circular unduly limits the marketing activities of content and information service providers. The circular also effectively favors traditional advertising methods, such as those in television, radio and print, the firm said. It also said that the circular does not only regulate, but also prohibits trade in that it absolutely bans the use of push messaging as a marketing medium. "The absolute ban on push messaging impairs the ability of content and/or information service providers to deliver services already requested by mobile phone subscribers and, thus, effectively prevents the fulfillment of their present and future contractual commitments to deliver mobile phone content, resulting in crippling, if not totally killing, their business altogether," it added. The industry has grown to about P5 billion in annual gross revenues. Not part of coalition Meanwhile, Chikka, one of the country's largest mobile applications developers, issued a statement denying it was part of a so-called content provider "coalition" that intends to stop the National Telecommunications Commission from implementing new regulations protecting consumers from "unwanted content" and "text spam." "It's been bandied about that Chikka will be part of this CP [content providers] coalition. We categorically deny this," said Chito Bustamante, Chikka chief executive officer. "We have never expressed a common position with other CPs on this issue, much less expressed support for a TRO or any other moves to stop the NTC from implementing MC [memorandum circular] 04-07-09." "We have gone only as far as seek clarifications from the NTC regarding certain sections of the memorandum circular," he added. "As a matter of fact, we are supportive of the spirit of the new regulation intended to protect the public from potential abuse." To see more of The Manila Times, or to subscribe to the newspaper, go to http://www.manilatimes.net. Copyright (c) 2009, The Manila Times, Philippines Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |