SMS contests based on chance declared haram

PETALING JAYA: The National Fatwa Council's declaration today that SMS-based contests containing elements of chance were haram (unlawful for Muslims) has been welcomed by several companies that run SMS-based contests.

However, their thumbs-up was for more secular reasons.

Companies contacted by The Star said the move would weed out unscrupulous operators who they claimed made up the bulk of parties running SMS (short message service) contests that could be considered as gambling.

"It's a good move, as it will stop fraudulent, chance-based SMS campaigns," said Lester Neil Francis, general manager of AKN Messaging Technologies Bhd, a Multimedia Super Corridor company which specialises in mobile content and applications.

He said that such contests "have always been a problem."

There are over 400 companies that have signed up with telecommunications companies or telcos like Maxis Communications Bhd, Celcom Bhd and Digi Telecommunications Sdn Bhd to provide premium SMS services.

The telcos themselves run such services, including contests.

Several companies said the terms and conditions of their agreements with the telcos prohibit services that contravene Malaysian laws and industry regulations.

"The 'bona fide' operators are not the ones primarily behind these gambling-tinged contests," said an official of another company that runs SMS-based contests.

Companies that provide SMS services require a licence from the Malaysian Communications and Multimedia Commission (MCMC) to operate, but many are believed to be operating without any.

Speaking on the fatwa, Hisyam Halim, chief technology officer of mobile content and software services provider EssentialBiz Sdn Bhd, said, "We welcome it, as long as legitimate SMS-based contests continue to be allowed."

The telcos were however guarded in their comments on the fatwa, which may have a large impact on the local SMS market.

Asked what Maxis planned to do in view of the ruling, a company spokesman would only say, "We will be guided by the law and will abide by the regulations set out on this issue."

Malaysians last year sent out over six billion SMS messages, and the latest statistics compiled by MCMC indicate the figure would be surpassed in 2004.