ZED Phils denies violating NTC service requirement rule

ZED Philippines, Inc., a provider of applications and content to Smart Communications Inc., has denied violating the National Telecommunications Commission (NTC) rules, particularly on the registration requirement as value added service (VAS) and as content provider. ZED was responding to a complaint that provider is operating without a VAS permit. The firm said it is not a VAS provider, hence, the registration requirement of the NTC does not apply to the company. Zed explained that the company is a mobile phone content aggregator and supplies mobile phone operators with both foreign and local applications and content, which the cellular operators in turn offer to the public. The company said that it does not deliver the applications and content directly to the mobile phone subscribers. “In this respect, it may be no different from the way television or cable program developers do not supply the viewing public directly, but sell the programs to the television and cable TV broadcasters," said Zed. Complainant David Michael Amparo had asked the regulators to order Zed to cease from continuing to provide VAS to mobile phone subscribers. He said that Zed’s operation as a VAS provider, despite lacking the required license, is a blatant violation of NTC memorandum circular no. 8-9-95. The Telecoms Public Act defines a VAS provider as “an entity which relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers." Zed said it does not offer enhanced services as it only maintains a database of applications and content, which are then supplied to the mobile phone operators. Further, it said that it does not own network nor does it lease facilities from the cellular firms to render services to the public. Moreover, Zed said there is no law or NTC regulation that states that a content provider is a VAS provider. “The complainant’s insistence that Zed is a VAS provider is clearly misplaced and incorrect. Zed is not in violation of NTC MC No. 8-9-95 for not registering as a VAS provider. The requirement does not apply to Zed because it is not a VAS provider," said Zed in its 16-page reply. Unlike a VAS provider who is mandated to offer services to the public, content providers are not mandated to sell any content to the public, Zed said. This is mainly because, added Zed, content provider are merely providing information and entertainment content they create, develop, aggregate or purchase to the mobile phone operator. “In a similar fashion, HBO cannot be mandated to provide content to the viewing public, as it is a matter for negotiation with the cable TV operator," it said. Zed also said that it has never refused to register as a content provider with the NTC. It said that it has expressed its “willingness" and “tried to register" with the NTC but its pending request for clarification and ruling on the application of a 2005 circular is still pending. - GMANews.TV