MCMC fines five telcos nearly RM1mil over false prepaid registration

  • Service providers required to verify information provided by potential subscribers
  • Failure to do is a breach under Section 242 of the Communications and Multimedia Act

THE Malaysian Communications and Multimedia Commission (MCMC) has issued a total of RM920,000 in fines to Celcom Axiata Berhad, Merchantrade Sdn Bhd, U Mobile Sdn Bhd, Tune Talk Sdn Bhd, Maxis Mobile Services Sdn Bhd and Maxis Broadband Sdn Bhd for breaching their license conditions.
 
The breach was specifically for failing to ensure proper registration of accurate user information for prepaid accounts, the MCMC said in a statement.
 
Celcom Axiata Berhad received eight for a total of RM400,000; Merchantrade Sdn Bhd was issued seven fines amounting to RM240,000; U Mobile was issued four fines totaling RM100,000; Maxis Mobile Services Sdn Bhd was issued three fines amounting to RM150,000.
 
Maxis Broadband Sdn Bhd and Tune Talk Sdn Bhd were issued fines of RM10,000 respectively.
 
[RM1 = US$0.32]

In an immediate response, Tune Talk chief executive officer Jason Lo told Digital News Asia (DNA) that although there are many systems in place to ensure registrations are as accurate as possible, with a network of thousands of dealers, it can be hard to monitor every one.

"While we are doing the best we can, I think some blame has to be on the dealers in question too as their actions put the entire industry in bad light,” he said, adding that Tune Talk will be reprimanding the dealer involved.

Service providers or their representatives are required to verify the information provided by potential subscribers against the information contained in their MyKad or other official identification documents, such as passports.
 
MCMC fines five telcos nearly RM1mil over false prepaid registrationThe registration is to avoid misuse of end user information which is a breach of their license conditions as prescribed under Section 242 of the Communications and Multimedia Act 1998, the industry regulator said.
 
“We view the failure to ensure proper registration of accurate user information as a serious offence,” said MCMC chairman said Dato’ Mohamed Sharil Tarmizi (pic).
 
“We have received numerous complaints and info about cases where individuals’ MyKad or IC (identity card) numbers and names have been used when in fact they never did apply for the service from the said telcos,” he added.
 
This is the second time in recent weeks that MCMC has flexed its regulatory muscle: Earlier this month it imposed compounds totalling RM190,000 on three telcos for breaching their licence conditions on complaints from the public concerning dropped calls.

DiGi Telecommunications Sdn Bhd was served four separate compounds totaling RM100,000, Celcom Axiata was fined RM60,000 for three separate compounds, and Maxis Mobile Services Sdn Bhd had two separate compounds amounting to RM30,000.

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