Editorial Summary

Eighty percent of SMS spam is sent by Focus Media (Nasdaq: FMCN) subsidiary Focus Wireless, reports Beijing Morning Post citing China Central Television's (CCTV) televised World Consumer Day ceremony. Focus Wireless has acquired several small enterprises in preparation for listing and the loosely regulated SMS subsidiaries may be responsible for the spam, explained Focus Wireless vice president Ji Hairong.

According to Southern Metropolis News, Focus Wireless' Zhengzhou subsidiary sends out 200 million SMS daily while several other company subsidiaries send out 30 million SMS per day. Ji says company executives do not permit the transmission of commercial advertising without permission from the recipient and that consumer information is obtained through legal channels, according to a Sohu report.

Focus Wireless has had its wireless value-added service provider (SP) qualification revoked by government regulators and may lose its wireless business, reports Sohu quoting an unnamed insider. Ji denied the rumor by saying that Focus Wireless is an advertising operator, not an SP. While Focus Wireless does not directly own an SP license, it has acquired dozens of SP subsidiaries.