audit on application service provider class licensee ... cp.pdf8 |suruhanjaya komunikasi &...

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|Suruhanjaya Komunikasi & Multimedia Malaysia|

Audit on

Application Service Provider Class Licensee

Providing Messaging Services Under

The Communications And Multimedia Act 1998

- Scope of Work-

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Mobile Content Services

Level 1

• Short code allocated for government services and currently maintained by MAMPU through its vendor, DAPAT Vista Sdn Bhd

• 15888

Level 2

• Short code used by the cellular network operators (Celcos) for its branded mobile content services.

• Eg. 26002

Level 3

• Short code allocated by Celcos to CPs for premium services

• Eg 33546

Level 6

• Short code allocated by Celcos to CPs for bulk services with no charging capability.

• Eg 62002(FOC)

• Services provided through short code

• Services regulated through the Mandatory Standards for the Provision

of Mobile Content Services

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|Suruhanjaya Komunikasi & Multimedia Malaysia| |Suruhanjaya Komunikasi & Multimedia Malaysia|

Perkhidmatan Kandungan Mudah Alih/SMS

Transaction Segregation for Year 2010

According to Short code series

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NPO under the CMA 1998:

“To regulate for the long-term benefit of the end user and to promote a high

level of consumer confidence in service delivery”

1.

Unethical CP

2.

Billing Error

3.

SMS Spoofing

Increase in Consumer

Complaints

Observation made on issues from mobile content

service, transactions may not be valid due to:

Misleading marketing activities • SMS • Internet Impact to consumer

Network problem

Reasons for audit:

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Billing 13%

Content 19%

Cybercrimes 4%

Term and Condition 0% Misc

3%

Misrepresenatation of Service 3%

No Service Coverage 4%

Not under MCMC Jurusdiction 2%

Poor Service 37%

Postal and Courier 1%

SMS Mobile Content 11%

Spectrum Interference 1%

Telecommunication Equipment 1%

Unfair Practice 1%

Unlicensed/Illegal Service Provider

0%

33 29

48 44 32

38 38 37

59 52

83 70

0

20

40

60

80

100

Jan Feb Mar Apr May Jun

2010 2011

Complaints received in 1st half 2010 Vs 1st half 2011

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|Suruhanjaya Komunikasi & Multimedia Malaysia| |Malaysian Communications & Multimedia Commission|

Segregation of Complaints on Mobile Content Services

SMS Promo 32%

Termination Failed 3%

Unsolicited SMS 64%

Billing Dispute 1%

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|Suruhanjaya Komunikasi & Multimedia Malaysia| |Malaysian Communications & Multimedia Commission|

• Misleading advertisement and marketing strategy through SMS, WAP, WEB

• Billing/technical error at CP’s platform

• SMS spoofing activities

1.

Suspicious subscription

• Not aware about subscription of mobile content services

• Unauthorized phone used by 3rd party i.e. children, family member, friends.

2.

Consumer‘s conduct

Monitoring findings on complaints on unsolicited

charged SMS:

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Action Taken on Non Compliances Sh

ort

Co

des

Su

spen

sio

n

85

Key

wo

rds

Susp

ensi

on

116

FIR

20

11

57

Note: Figure from 2007 till 1st half

2011 Note: Figure for 1st 2011

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Audit Scope of Work

Overview of the entire mobile content service value chain, CP’s

business process, the cellular network provider responsibility,

network architecture and product information including but not limited to service provisioned by the sub CP

Examine the authenticity, legitimacy and reliability of the transactions

made by CP, through, but not limited to its gateway and the cellular network providers’ gateway .

Examine the compliance with the MS by the CPs

Provide advice on regulatory intervention that should be taken by SKMM against the non-compliance

CPs

Examine all the promotional materials and mediums used by the CPs in promoting their services to

customers

Propose the methodology of conducting the audit in arriving at the statement with regards to the authenticity, accuracy, legitimacy

and reliability of charging of mobile content services in all material

aspects

Examine the accuracy of the charging and the legitimacy of the

transactions in respect to mobile content services made to consumer’s

account

Examine the rectification of the system and refund process to the consumer due to non-compliance cases were fully carried out and

processed by the CPs.

Provide advice on the improvement of the regulatory measures in

ensuring the industry has space to grow and at the same time consumer

interest is protected.

Audit conducted for transactions within 2 years

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For the purpose of this audit, 10 CPs have

been selected based on the following criteria:

1) Number of non-compliance committed;

2) Number of complaints received; and

3) Volume of transactions performed

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Deliverables and Timelines

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Preliminary Report should be Submitted to SKMM by 30 May 2012

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Final Report should be submitted and presented to SKMM by 30 June 2012

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Thank You Laman web www.skmm.gov.my

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