MONITORING AND COMPLIANCE (COMMUNICATION)

Channel for Consumer Complaint www.complaint.cfm.org.my

http://aduan.skmm.gov.my

Consumer Protection in Action – Role and Approach

Mandatory Standards for Service Quality

(Implemented by MCMC)

Certification/Code for example:

Consumer Equipment Certification or Code Implemented through Self Regulatory Forum

Communications and Multimedia Act 1998 (CMA) and Subsidiary

Legislations

Figure 1: Consumer Protection in Action – Role and Approach

The Mandatory Standards were established to:-

• enhance and protect consume rights.

• provide consumers with clear and specific criteria for measuring the quality of service received or used.

• enhance global competitiveness by promoting local industry.

Through Mandatory Standards for Quality of Service, service providers are required to ensure the level of service quality offered to consumers complies with specific standards.

For example, to comply with certain standards, service providers are not allowed to exceed the maximum number of complaints for each set in the Mandatory Standards. Non-compliance with Mandatory Standards for Quality of Service is an offence under Section 105(3) Communications and Multimedia Act 1998. If found guilty, the offender can be fined not more than RM100,000 or jailed not more than two years, or both.

A total of seven Mandatory Standards for Quality of Service have been registered between 2003 and 2011, as follows:-

• Public Switch Telephone Network (PSTN) Service

• Public Cellular Service (PCS)

• Dial-up Internet Access Service (DIAS)

• Content Application Service (CAS)

• Public Payphone Service (PPS)

• Digital Leased Line Service (DLL)

• Broadband Access Service (BAS)

QoS• Mandatory Standards

• Consumer Satisfaction Survey

Enforcement

• Required Application Services

• Complaint Bureau

• Prepaid Registration

• Others

Rates Regulation (Fixed Telephony Services Only)

• Monitoring Mobile Content

Sevices (Mobile Content Services eﬀective 1 July 2010)

• Monitoring

Public Switched Telephone Network Public Cellular

Services

Dial Up Internet Access Content Application

Services

Public Payphone Mobile Content Services

(latest 2010)

Digital Leased Line Services Broadband

Access Services

QOS MANDATORY STANDARDS

Figure 2: Consumer Protection – Regulation Approach

The burgeoning use of mobile phones is in tandem with the rapid growth of the communications and multimedia industry. This increase is driven by various factors, among others, the expansion of cellular area coverage, competitive and attractive packages offered by service providers, and the use of mobile phone application to send short messages (SMS) and multimedia messages (MMS). As at the third quarter of 2014, the penetration rate of cellular phone service has reached 145% (source:

Facts and Figures, MCMC).

In line with the expansion, the role and responsibilities of MCMC have become even more challenging in its efforts to ensure that the development of mobile content service is beneficial to consumers in Malaysia while protecting consumer rights.

Complaints frequently received from users/consumers of mobile content service include spam, SMS promotion, confusing marketing activity and the validity of charges imposed on the consumers.

Complaint Statistics with regards to Mobile Content Service (2014)

MCMC’s record indicates that a total of 1,066 complaints were received in 2014. This represents an increase of 33% compared to 2013.

The complaints received are as follows:-

Types of Complaint No of Complaints

Unsubscribed service 1,050

Confusing SMS promotion 10

Failure to end service 4

SMS spam 1

Misleading contest 1

Table 1: Complaint Statistics with regards to Mobile Content Service

The table above shows that the complaints related to ‘unsubscribed service’ is the highest at 98.5%

out of the total complaints received in 2014. Complaints related to SMS promotion decreased to 10 complaints compared to 12 in 2013.

This is due to MCMC’s directive in 2012 requiring Content Providers to stop any promotional and marketing activities through short code for mobile content service.

Approach taken to Address Consumer Issue/Complaint:-

I. Enforcement of Mandatory Standards for the Provision of Mobile Content Service (Mandatory Standards)

For any non-compliance with Mandatory Standards, MCMC will issue a warning letter to the content provider concerned. In 2014, MCMC issued two warning letters to the content providers concerned.

Should the content provider be found to have repeated the offence, legal action will be taken for the breach of Mandatory Standards. In the event a content provider omits or neglects to comply with such Mandatory Standards, the content provider shall be liable to a fine not exceeding RM100,000.00 or to imprisonment for a term not exceeding two years or both.

II. Administrative action

Another approach taken by MCMC is to suspend short code for various offences that breach the provision of Mandatory Standards. In 2014, MCMC suspended 21 short codes, as follows:-

Short

Code Mobile Content

Service Provider Non-Compliance Case Date

Suspended

32263 Mobile

Communication Media Sdn Bhd

Para 11(a) (I) of the MS of MCS 18 Feb

37003 Quick Access

Sdn Bhd *Breach of Para 96 of the Mandatory Standards

*ASP License Condition No. 7 on ‘Billing Accuracy Requirement’

20 Mac

32355 Macro Kiosk Berhad Para 11(a) (I) of the MS of MCS 19 Mac 39599 Shrad Computing

Sdn Bhd In non-compliance to MS of MCS 18 Apr 33307 iSentric Sdn Bhd Para 7 and 96 of the MS of MCS 18 Apr 32278 Macro Kiosk Berhad Non-compliance on the renewal reminder

frequency (from U Mobile platform) which does not match Macro Kiosk

3 Jul

32355 Macro Kiosk Berhad Para 11(b) of the MS of MCS 23 Jun

36669 Mobile

Communication Media Sdn Bhd

Para 7 and Para 11(b) of the MS of MCS 7 Jul

33115 Alpha Crossing

Sdn Bhd Para 7 and Para 11(b) of the MS of MCS 7 Jul 33307 iSentric Sdn Bhd Para 7 and Para 11(b) of the MS of MCS 7 Jul

32263 Mobile

Communications Media Sdn Bhd

Para 7 and Para 11(b) of the MS of MCS 11 Jul

39332 Java Vest

Communications Sdn Bhd

Para 7 and Para 11(b) of the MS of MCS 11 Jul

33060 Zigma Records Para 7 and Para 11(b) of the MS of MCS 9 Sep 33028 Prima Network

Solutions Sdn Bhd Para 7 and Para 11(b) of the MS of MCS 9 Sep 33370 Macro Kiosk Berhad Para 50 of the MS of MCS 24 Sep 36630 D Tech Gateway

Sdn Bhd Para 7 and Para 11(b) of the MS of MCS 7 Jul 26666 Celcom Mobile

Sdn Bhd Part 2 Item no. 1.A.1.2 of the General

Consumer Code 20 Nov

Short

Code Mobile Content

Service Provider Non-Compliance Case Date

Suspended 32226 MTN Solutions

Sdn Bhd - embedded apps/MO which auto register the user without their approval

- misleading application

29 Oct

39799 Megamobile

Solutions Sdn Bhd Para 7 and Para 11(b) of the MS of MCS 7 Jul

33966 Java Vest

Communications Sdn Bhd

Para 7 and Para 11(b) of the MS of MCS

33193 Java Vest Communications

Sdn Bhd

Para 7 and Para 11(b) of the MS of MCS 7 Jul

Table 2: Offences that breach the provision of Mandatory Standards

MCMC had also identified 16 cases with regards to various offences and investigation paper was opened on 8 December for further investigation that can lead to court order under the provision provided by the Communications and Multimedia Act 1998.

The details are as follows:-

Non-Compliance Details Mobile Communications Sdn Bhd

• Para 7 and Para 11 of the MS MCS Celcom Mobile Sdn Bhd