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Tag: sms

  • Sanction for SMS Cartel

    Sanction for SMS Cartel

    The verdict delivered by the Supreme Court (MA) that punishes six cellular phone operators is a new hope for consumer protection efforts.

    For years, the Business Competition Supervisory Commission (KPPU) has been trying to bring shady businessmen to justice but it was always to no avail.

    The win is not only for KPPU, but also for consumers.

    The appeal panel of the Supreme Court on Monday last week imposed a fine of Rp77 billion to six cellular operators after it is proven that they were involved in the short message services (SMS) tariff cartel in the period of 2004 – 2007.

    The verdict also strengthened the ruling made by the KPPU in 2008, that was annulled by the Central Jakarta District Court.

    The sanction is actually very light.

    The Supreme Court should have imposed a more severe sanction, considering financial losses suffered by consumers are quite big.

    Based on the calculation done by the KPPU, financial losses suffered by consumers due to the SMS cartel reached Rp2.87 trillion.

    In addition, the fine is nothing compared with the profits gained by those cellular operators.

    The suspicion of conspiracy to determine the SMS tariff was apparent when the KPPU began investigation of this case.

    The indication of the violation of Law Number of 5 on 1999 on the ban of Monopoly Practices and Unhealthy Business Competition is seen from the SMS tariff that did not move from the figure of Rp250-350 since 2001.

    In fact, according to the calculation of the Regulation Board of PT Telekomunikasi Indonesia, tariff of sending text messages (SMS) should have been lower.

    Besides, since 1 January 2007, the calculation of the tariff is based on production costs.

    If we follow the pattern, there should be no reason to set the tariff high.

    From the calculation of the Regulation Board, production costs of sending a single SMS should be only Rp76 at most.The money is divided for the sending operator and the recipient operator.

    The evidence that the cartel did exist was getting stronger when the KPPU found a written agreement among them.

    This conspiracy must be stopped.

    Over the years, users of cellular phones had to pay higher tariffs of sending text messages, even higher compared with the tariffs in developed countries.

    For the record, users of cellular phones are not only bosses in skyscrapers, but also construction workers and meatball vendors.

    Consumer protection is indeed a rare item in this country.

    It is often much talked about and even regulated by laws but the practice is non-existent.

    Our consumers are virtually without power.

    The verdict delivered by the Supreme Court can serve as an ammunition for consumers to retrieve their rights stolen by cellular operators.

    The verdict can also be used as evidence to file a class action at the district court.

    The class action can also give deterrent effects for those shady businessmen.

    As an institution mandated to conduct supervision, the KPPU should be more active in unveiling nasty practices in the business world.

    If ‘economic diseases’ such as monopoly, cartels, and unhealthy business continue to get rampant, the economy will not be efficient and will be difficult to compete with other countries.

    Eventually, not only consumers in certain business sectors who will suffer, but the whole nation will also bear the brunt.

  • Premium SMS Scam in Thailand by Foreign Content Providers

    Premium SMS Scam in Thailand by Foreign Content Providers

    Scammers create SMS competitions or trivia scams to trick you into paying extremely high call or text rates when replying to an unsolicited text message on your mobile or smart phone. Over the last few months mobile operators in Thailand managed to close some sms gateways from frauduleus foreign content providers like Mexcomm.

    A Malaysian company, with offices in Thailand who’s tricking mobile users offering free gifts and promises to win numerous prizes. All fake. True Move together with AIS and DTAC are doing everything they can and even created mobile scam teams to reveal the companies behind these marketing techniques. Shortcode 4741777 was used by one of them, to trick unwilling clients and let them pay high mobile fees. Mobile operators have shut down the companies shortcode and is on the look for other companies who’r running similar marketing campaigns.

    According to their website, Mexcomm has won several mobile content prizes. You can question this, as most of the events were sponsored direct or indirectly by the company over the last decade.

    How this scam works

    An unsolicited text message may invite you to enter a competition for a great prize—for example, a smart phone or tablet or gift vouchers for a well-known retailer. You will be required to send a text message back. You may also receive an email or encounter a pop-up window online asking you to enter your mobile number in order to claim a prize you’ve supposedly won. Sometimes these come in the guise of a ‘customer survey’ in which you are prompted to provide your mobile number.

    Alternatively the message may invite you to take part in a trivia contest with a great prize on offer if you answer a certain number of questions correctly. The first lot of questions will be very easy – scammers do this intentionally to encourage you to keep playing. However, the last one or two questions that you need to answer to claim your ‘prize’ could be very difficult or impossible to answer correctly and may even require you to guess a random number.

    The scammers make money by charging extremely high rates for the text messages you send, and any further messages they send to you. These charges will not be made clear to you, and could be as high as $4 for each message sent and/or received. You may also be automatically subscribed to ongoing charges. You will not discover these charges until you see your next itemised phone bill.

    Warning signs

    • You receive a text message, which may look like an advertisement, offering you the chance to win a great prize by sending a return text to enter a competition.
    • A text message tells you that you could win a great prize by participating in a trivia competition over SMS. The first message may even contain a very easy question to tempt you.
    • The text message (or advertisement) does not contain all the terms and conditions, or an ‘opt out’ to stop receiving more messages.

    Protect yourself

    • Do not respond to text messages or missed calls that come from numbers you don’t recognise.
    • Look out for SMS and MMS numbers that start with 19 or phone numbers beginning with 190. These are charged at a premium rate, even sometimes for receiving a message, and can be very expensive.
    • Contact your mobile phone service provider to ask about the number—they will know if it comes from a premium rate service. Ask your telephone company to put a bar on premium rate services (190 numbers) to and from your phone.
    • If you did not want to participate and you receive more messages, contact your mobile phone service provider and explain that the charges are being made without your permission.
    • Do not provide your mobile number to websites or in response to unsolicited emails claiming you can win a prize without very carefully checking the terms and conditions. If there are no terms and conditions or they seem to be hidden from plain view, don’t risk it.
    • Read all terms and conditions of any offer very carefully. Claims of ‘free’ or ‘very cheap’ offers often have hidden costs. Before you sign up to a subscription service check that there is an option to ‘unsubscribe’.

    Retail News will hold a close watch and will monitor this more the next few weeks and months.