China Threatens Wireless Services

In an attempt to reign in what is quickly becoming an issue in the country, China's Ministry of Information Industry has clamped down hard on the wireless services sector accusing 102 companies of illegal behavior. The ministry said those who didn't comply with government regulations would lose their operating license.

In a statement posted to the agency's Web site, the companies were told to "straighten up within a given time," which was not specified, or face penalties.

Providers were first informed of new regulations about two weeks ago. The Chinese government hopes that its new policies would weed out unscrupulous companies who may be preying on consumers. This is the second time the MII has released such a list.

Among the regulations providers are expected to comply with include a one-month free trial period, and that companies must first get confirmation from a customer that he or she wishes to be billed to continue the service.

In the past, the MII has publicly warned companies for spamming or controversial content. This time, it appears that the companies are accused of overcharging customers, or preventing them from canceling their accounts in an easy manner, according to Chinese news sources.

The Chinese media says that it expects as much as a third of all named companies to cease operation due to the new policies. Analysts say that it is a sign that many wireless services in the country were of little value to consumers.