CCTV: China Mobile Subsidiaries Send Spam, Sell User Info
The Beijing News, 3/16/09
On a television program dedicated to World Consumer Rights Day (March 15), CCTV revealed that a number of China Mobile (NYSE: CHL; 0941.HK) subsidiaries in Shandong province are utilizing automated bulk SMS sending devices to send subscribers junk messages for personal gain and are also utilizing proximity information for local base stations to send advertising SMS messages when a user enters or exits the range of a given base station. They have also allegedly sold the personal information of local and national China Mobile subscribers to third-parties. In addition to various business advertisements, some mobile companies have sent illegal advertising content for value-added tax invoices, mortgages and unsecured loans. According to reports, client managers were set monthly revenue targets for the text messages in the six to seven figure RMB range.
China Mobile (NYSE: CHL; 0941.HK) stated it plans to launch an immediate investigation into the matter.
Editor';s Note: The Ministry of Industry and Information Technology (MIIT) has ordered China Mobile to investigate the situation in Shandong and provide a report on the matter to the MIIT, as well as take disciplinary action against the people and subsidiaries involved. It has also ordered all three telecom operators to conduct immediate internal investigations of their subsidiaries nationwide to ensure the problem does not exist elsewhere.
Keywords: mobile advertising 0941.HK CCTV China Mobile CHL revenue Shandong SMS spam wireless illegal scandal MIIT
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