Press Room
Chikka NOT part of "CP coalition"
July 22, 2009
Chikka, one of the country's largest mobile applications developers, has denied being part of a so-called Content Provider (CP) "coalition" that intends to stop the National Telecommunications Commission from implementing new regulations protecting consumers from "unwanted content," and "text spam."
"It's been bandied about that Chikka will be part of this CP coalition. We categorically deny this. We have never expressed a common position with other CPs on this issue; much less expressed support for a TRO or any other moves to stop the NTC from implementing MC 04-07-09," said Chito Bustamante, Chikka chief executive officer.
"We have gone only as far as seek clarifications from the NTC regarding certain sections of the memorandum circular. As a matter of fact, we are supportive of the spirit of the new regulation intended to protect the public from potential abuse."
Potential abuse, according to him, may come in the form of unwanted content that the subscriber continues to receive and thereby be charged, P2.50 daily for an SMS-based message such as a horoscope. For a ring tone, a subscriber is charged as much as P10 or P15 per tone received.
"It is unwanted content when a subscriber is unable to "opt-out" or unsubscribe from these services, whether they have inadvertently erased or simply forgotten the instructions or perhaps never understood the instructions to opt-out. We believe that this is what the NTC wants to protect consumers from."
"It is but the NTC's duty. And again, we are NOT about to stop the NTC from implementing the MC. The clarifications we need are not prerequisites; they may actually be made along the way," added Bustamante.
As to how this will affect the mobile value-added (VAS or content) industry, he said:
"Like any other industry, the content business is subject to factors that will include a certain amount of fair regulation. It is a reality. The industry must simply 'bite the bullet,' and look at this as a challenge to become more creative and innovative in developing quality products and bringing these to the market in a more permission-based and pro-consumer environment."
"As we speak, we are at work with all our telco network operator partners on new solutions and channels by which mobile subscribers may be better informed of our services, in particular those from which they will derive high utility and good value-for-money."
The NTC MC 04-07-09 which takes effect July 23, 2009 will ban among others unsolicited marketing messages or "text spam" as well as put a stop to "push" messages that include SMS alerts and ringtones being delivered until now on a subscription basis.
"Actually mobile services will still be available on a "pull" or "information-on-request" basis; say you need your horoscope or new alert for the day. And so you see, the mobile VAS industry should not have to be declared dead entirely. We really just need to focus on quality services with a lot of utility to consumers - services they will truly like and love, and then to deliver great value at fair prices. And yes, we must explore new business models. When you look at it, the new regulation, contrary to what some players say, could in fact inspire a stronger, more innovative and truly consumer-centric mobile industry," Bustamante said.
