Bulk SMS Operation in Beijing Prosecuted for Illegal Activity

According to the Beijing News, four individuals are facing criminal charges for SMS advertisements en masse without a proper license.

Two of the accused, Zhao and Shao, opened an advertising business in Beijing, but began sending advertisements and other information via SMS.

Bulk SMS businesses usually have a profit margin of about 20 percent. SMS devices can send up to ten thousand messages an hour for as little as .02 yuan a message.

On an average day, Zhao and Shao sent hundreds of thousands of text messages containing advertisements for available housing and services. They also circulated credit numbers, invoices, and personal information.

Zhao and Shao came under investigation in November of last year. The defendants maintain that they did not know that SMS operations require a special license.

Under current business regulations, operating a telecommunication business without a license can earn as much as 5 years in prison.

Currently, most SMS operations lack proper licenses.  Many businesses also confuse a telecommunications license with a business license.

Illegal SMS operations are notoriously difficult to trace because the devices they use are largely unregistered. Other businesses may carry a legitimate telecommunication license, but use it to engage in illegal activity.

Sources:

Beijing News: 群发短信首次被诉非法经营

Image Source: Madhatrk