Knowledgebase | Forums/Mobile Billing/Regulations & Market (Country) Data

Malaysia - Premium SMS Regulations

Jessica Medcalf
posted this on May 27, 2010 11:50

The Regulations in Malaysia caters and covers all of the Mobile Payment types. That includes, Premium SMS Billing, Standard Rate Services and Short Codes. 


Regulators

txtNation_screenshot_16_Nov._22_13.13.41.gif SURUHANJAYA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (SKMM).

English translation: MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION

The Malaysian Communications and Multimedia Commission (SKMM) is the regulator for the converging communications and multimedia industry. At the time it was created its key role was the regulation of the communications and multimedia industry based on the powers provided for in the Malaysian Communications and Multimedia Commission Act (1998) and the Communications and Multimedia Act (1998). Pursuant to these Acts the role of the Malaysian Communications and Multimedia Commission is to implement and promote the Government's national policy objectives for the communications and multimedia sector. The Malaysian Communications and Multimedia Commission is also charged with overseeing the new regulatory framework for the converging industries of telecommunications, broadcasting and on-line activities.

SKMM's General Consumer Code of Practice For the Communications and Multimedia Industry Malaysia lists general requirements for all types of advertising in Malaysia. This Code also lists references to other requirement documents, for example the Communications and Multimedia Act 1998, Commission Determination on the Mandatory Standards for Quality of Service (Public Cellular Service) Determinations No.2 or 2002. Although this act is primarily aimed at the Carriers themselves, there are pass through requirements that must be adhered to, e.g. see clauses 8 and 9 regarding billing compliant resolution.   

SKMM pursues 10 national policy objectives set forth by the Communications and Multimedia Act. These objectives are:

 - to establish Malaysia as a major global centre and hub for communications and multimedia information and content services

 - to promote a civil society where information-based services will provide the basis of continuing enhancements to quality of work and life

 - to grow and nurture local information resources and cultural representation that facilitate the national identity and global diversity;

 - to regulate for the long-term benefit of the end user;

 - to promote a high level of consumer confidence in service delivery from the industry;

 - to ensure an equitable provision of affordable services over ubiquitous national infrastructure;

 - to create a robust applications environment for end users;

 - to facilitate the efficient allocation of resources such as skilled labour, capital, knowledge and national assets;

 - to promote the development of capabilities and skills within Malaysia's convergence industries; and

 - to ensure information security and network reliability and integrity.

The 10 national policy objectives are the regulatory basis of SKMM’s regulatory framework which include, economic regulation, technical regulation, consumer protection and social regulation. [source]

For information on running on our shared codes in Malaysia see our Malaysia / Shared Short Code Requirements and Restrictions forum. For more general requirements and to apply for a dedicated Malaysian short code, see below.

Also see The current Commission Determination on The Mandatory Standards For The Provision Of Mobile Content Services Published by Malaysian Communications and Multimedia Commission

 

 

Carriers 

Celcom

Digi Telecom

Maxis Berhad

 

Graph: Malaysian Carriers Market Share

txtNation_screenshot_09_Nov._22_10.19.47.gif[source]

 

Market Statistics 

Summary:

In terms of SMS traffic volumes, the Malaysia is ranked 5th in the Asia-Pacific region with an average of 24.9 SMS messages sent per month per user - 1st is Philippines (336) followed by Singapore (75), Australia (42.9), South Korea (27.3), Malaysia (24.9), Taiwan (12), and Thailand (3). Microbilling is readily accepted, for example there are Coke vending machine payments via SMS in Malaysia. [source]

General:

- Flag: 

- Area: 329,748 sq. km. (127,315 sq. mi.); slightly larger than New Mexico.
- Cities: Capital--Kuala Lumpur. Other cities--Penang, Ipoh, Malacca, Johor Baru, Shah Alam, Klang, Kuching, Kota Kinabalu, Kota Baru, Kuala Terengganu, Miri, Petaling Jaya.
- Terrain: Coastal plains and interior, jungle-covered mountains. The South China Sea separates peninsular Malaysia from East Malaysia on Borneo.
- Nationality: Noun and adjective--Malaysian(s).
- Population (2009): 28.3 million.
- Annual growth rate: 2.0%.
- Languages: Bahasa Melayu (official), Chinese (various dialects), English, Tamil, indigenous.
- Subdivisions: 13 states and three federal territories (Kuala Lumpur, Labuan Island, Putrajaya federal administrative territory). Each state has an assembly and government headed by a chief minister. Nine of these states have hereditary rulers, generally titled "sultans," while the remaining four have appointed governors in counterpart positions.
- Nominal GDP (2009): $191.5 billion.
- Annual real GDP growth rate: 5.9% (2006); 6.3% (2007); 4.6% (2008); -1.7% (2009).
- Nominal per capita income (GNI) (2009): $ 6,897.
- Industry: Types--electronics, electrical products, chemicals, food and beverages, metal and machine products, apparel.
- Trade: Merchandise exports--$1167.7 billion: electronic products, manufactured goods, petroleum, palm oil, liquid natural gas, apparel, timber, rubber. Major markets-- Singapore 14.0%, China 12.2%, U.S. 11.0%, Japan 9.8%. Merchandise imports--$131.8 billion: electronic products, machinery, chemicals, manufactured goods, petroleum products. Major suppliers-- China 14.0%, Japan 12.5%, U.S. 11.2%, Singapore 11.1%. 

[source]

    ~ Market Growth

General region↓ Total number of Internet users (thousands)↓ Internet Users per 100 inhab.↓ Total population (thousands)↓ GDP per capita↓ GDP total (thousands)↓ Mobile subscibers per 100 inhab.↓ Total number of mobile subscribers (thousands)↓ Market Size↓ Market Growth↓
Asia & Pacific 16903 63 27010 7031 189907310 103 27710 Medium Slow

[source]

 Currency

The Malaysian ringgit (plural: ringgit; currency code MYR; formerly the Malaysian dollar) is the currency of Malaysia. It is divided into 100 sen (cents). It is normally abbreviated with RM, or alternatively MY or MYR. RM must be used when conveying the price to users, e.g. RM10.

RM1 in £GBP

RM1 in $USD

RM1 in €EUR

Further Information

For a detailed report on the Malaysian telecommunications market see SKMM's 2007 report Trends and Markets in Malaysian Mobile Service.

 

Approval Process

When applying for a Malaysian dedicated code your draft promotions should be submitted to txtNation via the form provided below. The form and your draft promotions should be submitted in English or English and Bahasa Melayu. You should not put any promotions in a public place before they have been approved.

As part of the application process for you will need to complete a txtNation Customer Care Form (CCF).

Dedicated shortcode approval takes 4 weeks upon application approval by mobile operators.

After approval all new promotional messages or changes to your approved promotions must also be submitted to the carriers for approval prior to broadcasting to mobile subscribers, it takes approx 2 weeks to get this approval. 

 

Promotion Guidelines 

See the General Consumer Code of Practice For the Communications and Multimedia Industry Malaysia, highlights include:

Page 12: Description of a Service

Page 13: Pricing Information

Page 18: Disclaimers

In addition carrier guidelines state:

- Hotline service and availability must be indicated at all times. Hotline service minimum operation hours must be from 9:00 am to 6:00 pm Malaysian time weekdays (Monday to Friday) except on gazette public holidays.

- Content provider must not superimpose nor prominently display one price unless all content advertised is being sold at the same price.

- Promotion transmitted via television: The price information must be made available and clearly displayed on the same screen as the shortcode.

- Promotion transmitted via radio: The price information must be announced immediately before or immediately after the announcement of the shortcode information.

- Price information must be denoted using official local currency abbreviation which is represented by RM (Ringgit Malaysia).

- Content provider can only charge a mobile subscriber when he or she has requested and received a service.

- Content providers are not allowed to charge a mobile subscriber for information messages such as turning a subscription on and off, listing of users in a chat room, reminder message for subscription renewal will be sent on the last day of the month, request for help to use a service or an invalid request by a mobile subscriber, etc.

- Content provider must ensure that service charges, frequency of the service, opt-out instructions, hotline and website (if applicable) are mentioned clearly in all promotional materials.

 - MCMC has banned the promotion of 3-series services via 6-series shortcodes (3 series shortcodes are for chargeable services, 6 series is for pushing bulk SMS). This means you cannot advertise a premium service with a bulk message.

 

Opt-in Process 

- Premium transactional services require a single opt-in (SMS-O).

- Standard rate subscription programs require a single opt-in (SMS-O).

- Premium rate subscriptions require a double opt-in (SMS-O or WO-RAR).

- PIN opt-in (WO-PIN) is not available in Malaysia.

 

 

Message Flow Requirements

Transactional Content Based Services do not ongoing billing and standard rate subscription services do not require a renewal confirmation, e.g. services such as:

- Images

- Videos

- Ringtones

- Downloads

- One off text content

or

- Daily Horoscope

- Goal Alert

- Daily Joke

 

Time Based Service:

- Subscription services will be delivered over a weekly or monthly period, for example a Ringtone Club.

- Price range and estimated MT (Mobile Terminating) per period must be specified, e.g. RM10.00 per week

- It is mandatory that renewal confirmation message must be sent to mobile subscribers for Charged Time Based Services.

 

Subscription Based Services Guidelines 

- Content providers are allowed to provide a service only to mobile subscribers that have opted-in via an MO for the service.

- Safe keep records and proof of opt-in MO should there be a dispute from mobile subscribers.

- Ensure the following:

    ~ The nature of the service is made clear to mobile subscribers at all times.

    ~ Charging is made clear to mobile subscribers at all times.

    ~ Opt-out via SMS is made available to mobile subscribers at all times.

    ~ Opt-out Instructions are to be clearly indicated to mobile subscribers at all times via SMS.

Example Confirmation Message that should be sent when user joins:

<Price per frequency><subscription details><customer service details>

RM2/week. To stop send “STOP JOKE” to 32000. For any enquiries, please call (603)xxxx xxxx between 9am to 6pm, Monday to Friday.

 

Example Web based opt-in requiring a reply that should be sent when user joins via a web form:

<Price per frequency><subscription details><customer service details>

RM2/week. Reply {KEYWORD} to join. To stop send “STOP JOKE” to 32000. For any enquiries, please call (603)xxxx xxxx between 9am to 6pm, Monday to Friday.

 

Example Reminder Message that should be sent before next billing event:

 

RM0. Subscriptn Reminder. No subscriptn fee. Price RMX/SMS, YSMS/mth. Auto renewal dd/mm/yy unless cancelled. To cancel, send STOP <keyword> to 3xxxx.

 

RM0. Notis Peringatan pembaharuan. Tiada yuran daftar. Harga: RMX/SMS, YSMS/bln. Auto pembaharuan dd/mm/yy kecuali henti. Utk henti, htr BATAL <keyword> ke 3xxxxx.

 

 

Malaysia has the following Mobile Payment options available, all of which fall under these regulations.

  • Premium SMS (P-SMS) including Short Code services

 

Additional options for Mobile Payments and Messaging in Malaysia include:

  • HLR Lookup
  • Bulk SMS

**********************************

 

Comments

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Client Support
Support | txtNation

It has come to our attention that there has been an increase in customer complaints towards premium services in Malaysia recently. Hence, we seek your full cooperation to comply with the following implemented monitoring and controls regulations for long-term business continuity, with immediate effect.

 

  1. Any keyword that receives more than 10 complaints per week:

    Content Provider will be reminded to reduce volume of complaints.

  2. If same keyword receives more than 10 complaints 2 weeks in a row:

    Keyword MO will be suspended for all telcos. Content Providers will still be allowed to push MT to other Telcos; however, commitment is needed from Content Providers not to push to Maxis.

  3. If the volume of complaints reduce from Maxis for the next 2 weeks:

    MO for that keyword will be uplifted & Content Providers allowed to utilise their advertisement(s) again.

  4. If Content Provider still push to Maxis after MO suspended:

    MT for the affected keyword will be suspended for all Telco.

     

     

  5. For any Content Provider that has over 40 complaints per week (all 
    keywords/shortcodes combined):

    Content Provider will be contacted to reduce volume of complaints
    complaints.

  6. If same Content Provider has above 50 complaints continuously for 3 weeks:

    Their Malaysia MIS account will be suspended.

January 08, 2014 14:11