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Recent NTC Memo could kill CP Business

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The NTC has made amendments to the MC03-03-2005 which regulates contents/information providers to initiate the “opting-in” of subscribers to services through push messages. It’s been the focus of a lot of issues and disputes on vanishing prepaid loads.

Normally, content providers (CP) will randomly blast free ringtones or ringback tones for free (usually to promote a popular movie or event, like a concert). However, in order to get the free ringtone, one must subscribe to the weekly service. The succeeding tones are then charged to the subscriber.

Realme Philippines

This practice is now disallowed after the NTC made the following amendments:

  • Push messages shall not be allowed. Subscriptions or requests for contents and/or information shall be initiated by the subscribers.
  • Commercial and promotional advertisements, surveys and other broadcast messages shall be allowed only if prior consent from the subscribers is secured.
  • All subscriptions for the delivery of contents and/or information made prior to the effectivity of this Circular shall continue to be honored until the expiration of the subscription. Subscribers with valid subscriptions prior to the effectivity of this Circular may opt to terminate the subscription prior to expiration. Contents and/or information service providers and CMTS providers shall inform their respective subscribers of their option to pre-terminate their existing subscriptions.

One source who’s into the CP business tells me this amendment could kill as much as 90% of the revenues generated by the industry. The telcos are closely cooperating with the NTC to monitor the Content Providers’ activity on “push messages” and I’m pretty sure there’s a lot of lobbying happening right now.

Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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Lance Bertotti
9 years ago

wonderful post, very informative. I ponder why the opposite experts of this sector do not notice this. You must proceed your writing. I am confident, you’ve a huge readers’ base already!

zorann
zorann
10 years ago

Yuga, how much are the telcos paying you to post this? “Recent NTC Memo could kill CP Business” – give me a break.

Text credit is not a product that spoils or is finite like food, water, or electricity and is purely electronic. It can be generated out of thin air. The telcos are already earning a lot of money by imposing an expiration date on these text credits and in effect forcing the users to load frequently. So tell me, why would the recent NTC Memo kill 90% of their business?

Obvious talaga kapag binayaran ang author ng isang article.

Ronald
Ronald
12 years ago

Globe found another way to eat up our load!

Did some of you notice that lately, most (not all) of the text messages you are receiving are duplicated?

On the other hand, when you try to send an SMS, the first attempt will give you a Failed error message then on the second attempt, the message will be sent.

I tested it and I got charged for two messages though the first attempt was not successful. the test message that I sent only says “This is a test.”. The test message was received twice by the recipient.

Haynakerrrrr Globe talaga.. para-paraan grrrrrrrrr

Jazzeline
12 years ago

Yay! No more spam on my phone. Globe is a major culprit in this, so they may be the one who will be losing their 90% revenue. Its because of this spam that I am now buying prepaid cards.

blankpixels
12 years ago

i’ve been a victim of these push messages from sun cellular. i noticed that whenever i have regular load credits, after a few hours, my load will just drop down to 0 ‘coz of all the unauthorized ads they send me. and, take note, i didn’t accept any kind of ad or subscription from them. i even called sun’s cellular’s customer service hotline and they couldn’t give me a straight answer.

this should’ve been done a lonnngggg time ago.

jose
jose
12 years ago

Good for them that there no burdensom penalty imposed like what happened to intel.

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