China's Ministry of Information Industry (MII), the regulator in China's telecom sector, has published a list of 102 companies that have engaged in illegal operation of wireless value-added services.
This is the second time that MII has released the blacklist of wireless service providers since it started efforts in cleaning up the sector last year.
Chinese software developer Kingsoft and Shanghai Sifang Information Technology have been included on the list. Others include KongZhong (KONG) and Hurray (HRAY), who both previously warned investors of possible problems.
MII is requiring these 102 companies to correct their poor behavior in a given period, which is not clearly specified, saying their business licenses will be revoked if they fail to do so. Infractions of the companies include overcharging users for mobile services and not providing a means for users to easily unsubscribe from mobile services.
Local media predict that as much as 30% of China's current wireless value-added companies will die as a result of this new policy shift.
For a comprehensive Chinese-language list of all the companies involved, download the full listing from MII's website here.