Ministry of Industry and strike hard chip telecom value-added service provider industry decontamination operations initiated

To have been "walking a tightrope" in Shenzhen, China Activity Flying Network Technology Development Co., Ltd. (hereinafter referred to as "China Activity Flying"), that the sword of Damocles finally falls.

Recently, one notices the Ministry of Industry show that China violated the rules fixed flying operators providing telecommunications value-added services (commonly known as SP operation), has been China Mobile and China Unicom, two major carriers to terminate the short message service access.

China Activity Flying line A8 Digital Music (00800.HK) actual control in the telecommunications value-added services in the Mainland related operating companies, an important source of income for the A8. Original music, as the largest network platform, A8 This time checked no small vibration on the industry.

"Chu Laihun, sooner or later have to repay." – The turn of the Chinese action flying, but not the case.

May 24, the Ministry of Industry in its official website revealed the first quarter of this year for "mobile phone built-in backdoor software traps hidden fees" and other issues, the Ministry of Industry has dealt with illegal business 42 times, and to take business off the assembly line, stop charging so severely punished.

In fact, SP industry since its birth, its illegal operations on the endless questions. With the recent years, mobile phone sales of lower profits, more and more terminal manufacturers have begun to "active" participation in the built-traps and other deductions irregularities. Forming an from the operator, SP providers, mobile solutions company, handset manufacturers, the gray interlocking interests of the industry chain.

Reporter from the communication industry chain covering upstream and downstream multi-understand the effect of regulation can be described as a significant storm. But the storm, how to cut the SP from the fundamental interests of industry, the gray behind the chain, is still a test of the parties to an industrial problem.

Thorough investigation of SP

With the popularity of mobile phones in China, and the commencement of 3G services to mobile data services as the core value-added services, telecommunications services are increasingly becoming the focus of complaints.

The data from the Ministry of Industry show that the fees dispute complaints in 44% of the total, most of which is the field of telecommunications value-added service charges complaints.

"In recent years, SP industry illegal operation, showing an increasing trend of deterioration." Shenzhen, industry professionals engaged in SP memories of early SP illegal trade in order to induce the high side of Click deductions. Usual operating practice is that the user take the initiative to push an "induced" message, most have involved the yellow obscene content, once the user clicks back, then the formation of deductions.

"Early in the 'induced' SP, actually made use of loopholes in the policy, but there was no significant operational process violation." These people think. But soon, the model for operators, "second recognition" policy introduced, stopped short.

But the lure of profits in the industry under the SP, SP irregularities industry that has not disappeared, but on the more direct approach in the operation.

"SP vendors directly with the terminal manufacturers, and directly charge mobile phones built-in software." The person said, "built-in charge trap", has become the main form of SP irregularities – which is the Ministry of Industry and SP Renovation of "key areas."

Reporter from the Ministry of Industry announced the deal with the "built-in charge trap" was found illegal operations mainly SP operators and handset manufacturers camps. One Beijing Sohu Internet Information Service Co., Ltd., Beijing SINA Internet Information Services Ltd. impressively, and the results were "China Mobile suspended its operations on behalf of non-compliance fees, net of credits, a comprehensive reform of all SMS. China Unicom in Sichuan to stop its illegal business access. "

Mobile phone manufacturers in the violation, the lack Amoi, UT Starcom and other famous brands. Address the most serious of which is the operator SP Technology Co., Ltd. Guangzhou days of summer, "China Mobile and its termination of cooperation."

Decontamination operations initiated chip business

This Ministry of Industry and sponsored by the SP industry regulation turmoil has made the whole communications industry chain jittery.

Newspaper reporter learned that, as early as mid-April, the Ministry of Industry convened in Shenzhen on hundreds of business meetings to discuss the crackdown built-in charge traps. At the meeting, a huge mobile phone market share of the public spoke on a chip companies: "We're like a blank sheet, as to (downstream design company or integrator), or naked girls in the above Chinese painting, we can stop." Letter work immediately lead to high-level Department of discontent.

An upstream business for the communications industry "cleansing" operation begins.

Early May, the largest domestic mobile communications chip suppliers – Taiwan's MediaTek immediately announced, has been with Haier, TCL, Konka and other handset makers and mobile phone design companies IDH partners signed an agreement to seek their co-makers must not advance by phone Purchase any malicious software illegal smoking charges, if found, MediaTek will be resisted, and to take appropriate business action.

Then came another major domestic supplier of communications chips – Spreadtrum Communications, also in the May 26 launch in Shanghai set up a "green phone alliance", including Lenovo, Hisense, Wen-tai, Tencent and other dozens of mobile phone manufacturers solutions company, SP operators are joining them.

"Union members one of the purposes, that is to boycott any malicious mobile phone pre-absorption costs, Jurisprudence of illegal software business." Spreadtrum Communications, a leader of the reporter, "built-in charge trap" a root cause of flooding, is that some chip manufacturers, terminal manufacturers and operators SP conspiracy.

The specific operation method is preset in your phone charges malicious suction, Jurisprudence of the illegal software, which results in consumers paying entirely without the knowledge of high information costs.

"Upstream and downstream industry chain alliance members, mobile application software to do its internal oversight, while promoting mutual information sharing." The people said that this will put an end to the maximum extent possible "collusion" deductions.

"MTK, Spreadtrum two domestic mobile phone chip accounts for 90% of supply, both expressed from the upstream to prevent 'built-in charge trap', will to some extent, been contained to SP violations." ISuppli research in China Wang Yang, director of analysis.

Regulatory challenges remain?

Shenzhen Huaqiang North China's largest mobile phone distribution center, newspaper reporters learned that the initiative of the Department of Industry and Regulation SP can be said to effect a significant storm.

"The last month, our built-in software was relieved charges." Cottage many mobile phone manufacturers in Shenzhen told reporters, mainly dealers not to sell phones with built-in charge of software: "The recent investigation too hard to see to is the real thing. "

Moreover, in addition to the original "automatic deductions malicious software" to uninstall, the part of the regular SP built-in software also be deleted. "Dealers are now jittery, feeling a bit overkill." Cottage for a mobile phone manufacturers in Shenzhen are respect, the software built-in mobile phone is based on the needs of dealers to adjust their own interests is not too much involved.

According to survey this reporter, "deductions malicious software" built-in, usually through the program with the completion of SP operators. Cooperation model, were two mobile phone operators in the program will SP client software, built directly into the phone, program the company a one-time charges; Second, free built-in, but the program into the company with the SP operators.

"Different operators with different SP programs phone companies, divided into the ratio are not the same." Insider revealed, often contain a large number of built-in chargeback software, cell phone program board, the supply prices of downstream integrators relatively low So builders are willing to accept.

"Built-in mobile phone charging software program actually became an important part of the company's revenue." Insiders in the phrase above. In addition, journalists understand that some integrators, distributors or carriers with the SP software built into the phenomenon, are also common.

"How to sever them from the fundamental interest of the chain, a monitoring and control SP problem." Wang Yang analysis, SP remediation storm, small cottage phone integrators, solutions company, is inevitable rise: "How to ensure the long-term purifying SP industrial environment, remains a severe test of the regulatory parties. "

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