Zed halts new subscriptions following NTC-issued CDO

Spanish company Zed Philippines has stopped providing services to new subscribers following a cease-and-desist order (CDO) from the National Telecommunications Commission (NTC).

Company officials said reports that they continue to operate despite the government telecommunications regulatory office’s order for them to CDO are not true.

Country manager Jay Paul Adevoso emphasized that following the issuance of the CDO, Zed Philippines “has ceased to provide services to its new subscribers.”

“As a matter of course, we are just servicing our present subscribers and clients. We have stopped soliciting new subscriptions at the moment, “Adevoso pointed out.

Zed Philippines is a company that sells downloadable ringtones, wallpapers, operator logos, among others to mobile subscribers. Subscribers will have to access ZED’s services by way of registering through text messages.

The CDO was issued by the NTC in response to complaints the company has not registered with the agency as a value-added service (VAS) provider.

Adevoso also lamented NTC’s action against their company, as he reiterated the Spanish firm’s disgust over the regulatory body’s handling of their case. He maintained his earlier statement that the NTC’s action is “utterly arbitrary”.

“We are currently seeking for a reprieve from the Court of Appeals and we are confident that we could secure a temporary restraining order from the appellate courts very soon,” Adevoso said.

According to reports, as a result of this ongoing case, the company’s business operations have slowed down and actual revenues during the past two years continued to nose -dive. From P750 million in 2006, earnings dropped to P500 million last year and is expected to further drop to P400 million in 2008.

The NTC earlier ordered Zed Philippines, which sells value added services (VAS) for cell phone users such as ringtones, logos, picture messages and similar services to stop operations, saying it needed to secure a license to continue plying its trade.

In its decision, the NTC said Zed Philippines shall be deemed a VAS provider. “Considering that (Zed) is operating without necessary NTC permits and licenses, it is hereby ordered to immediately cease and desist from offering VAS services without authorization from this Commission,” according to the order.

Zed Philippines is the leading VAS supplier for Smart Communications.

The NTC has an ongoing effort to regulate VAS providers, which have ballooned to more than 200 firms.