MANILA - Smart Communications Inc. has sanctioned 50 erring content providers (CPs) who continuously violate guidelines on the sale and provision of value added services (VAS), including the sending of unsolicited text messages which consumers get charged for.

Smart did not give the identities of the CPs, but among those which provide VAS to Smart subscribers include Rising Tide Mobile Entertainment Inc., Information Gateway Inc., Zed Philippines, Wolfpac Mobile Inc., Entertainment Gateway Group, GMA New Media Inc, Xurpass Inc., and Chikka. They provide broadcast messages such as ringtones, horoscopes, commercial and promotional advertisements, and surveys.

Smart said the CPs were penalized for more than 250 infractions since the cellular firm started implementing more stringent rules in mid-2006 following a mandate by the National Telecommunications Commission (NTC).

Violators were given sanctions that range from warning letters to one-month suspensions to termination of contract.

“The most common cases are unwanted subscriptions to various services, the launch of new services by CPs without SMART’s prior clearance, and the failure of CPs to unsubscribe or deactivate the services,” said Roy Ibay, head of regulatory compliance at Smart.

The lawyer said that as a result of the cellular firm’s efforts, the incidence of such violations has steadily gone down over the past few years.

Major violations by CPs include failure to deactivate VAS subscriptions; sending cross-selling text messages to subscribers without prior approval by Smart; and failure to follow content delivery format and parameters.

“Our users should receive a welcome message that includes the promo offer itself, instructions on how to subscribe or opt-in, how to unsubscribe or opt-out, tariff and the frequency of the delivery of the service,” said Smart Public Affairs Group head Ramon R. Isberto.

Minor infractions by CPs include failure to follow the standard opt-out message, failure to submit a weekly report to Smart that lists the mobile-phone numbers of subscribers that have enrolled in various VAS subscriptions, failure to process opt-out requests of subscribers within 24 hours, among others.

“We are strictly enforcing our guidelines to ensure that our subscribers are properly protected,” added Isberto.

There are only 14 million of the registered 67 million mobile-phone subscribers who subscribe to VAS. Nearly 12,000 complaints on vanishing load were received by the NTC last year. Of this number, less than 200 are related to VAS.

Last July, the CPs agreed to withdraw their petitions for a temporary restraining order (TRO) against the implementation of the NTC’s new memorandum circular that prohibits them from sending unsolicited messages to cellular subscribers. In exchange, the NTC agreed not to cut them off while there is an ongoing probe on alleged abuse filed by a subscriber.

G-Gateway and Rising Tide have sought for a 20-day TRO before the regional trial courts in Quezon and Pasig cities. They said the circular is void and unconstitutional because it contravenes the national policy of fostering a healthy competitive environment for broadcast messaging services.

Section 7 of the MC  04-07-2009 states that the commission may direct the disconnection of the CP’s access to the networks of the mobile-phone firms pending the investigation of a complaint filed by a subscriber if the NTC finds that there is strong evidence against the provider.

CPs are prohibited from sending unsolicited push messages via text messaging without the consent of the subscriber. Subscriptions or requests for contents shall be initiated by the subscriber and not by the CPs who supply VAS such as ringtones, horoscopes, commercial and promotional advertisements and surveys. These broadcast messages shall be allowed only if prior consent from the subscribers is secured, said the NTC.

“A subscriber who wants to use the service offered by content provider and/or public telephone entities (PTEs) may avail themselves of such service only through the operative act of communicating with the content provider or PTEs through written correspondence, text messaging, Internet or other similar means of communication,” section 2 of the NTC circular stated.

After the subscriber has completed his act of subscription, the delivery of the subscribed content or service shall no longer be deemed a push message.