Briefing by MTN on Porn Adverts

1. MTN Briefing to the Parliamentary Portfolio Committee on Home Affairs relating to Access to Adult Content 15 November 2005

2. Briefing by MTN on Porn Adverts • Introduction • Content on Mobile Networks • Entities involved in content provision value chain • MTN and WASPA • Adult content: What makes it difficult? The complications for mobile operators • What is being done • What can still be done? • Conclusion

3. Introduction Content on Mobile Networks • There are a variety of means that any content may be accessed by a mobile subscriber, for example • Content portal of a Mobile Operator – “MTN Loaded” • Third party content providers – Usually by agreement with Mobile Operator • The internet • Content can be requested and delivered via • SMS, IVR, WAP, WIG, USSD, MMS • Content can be requested on one bearer and delivered on another • There are also many entities involved in the value chain of developing, integrating, making available and delivering various kinds of content, including adult content • MTN will in this presentation address these means and entities in an effort to explain the complexities involved in the possibility of children accessing adult content

4. Content on Mobile Networks • As an operator, MTN carries both voice and data traffic on its network • MTN provides content services through its portal namely • MTN has made a decision not to provide adult content services through its own content portal “MTN LOADED” • MTN is both a content provider and a content delivery mechanism • In terms of section 2 of the REGULATION OF INTERCEPTION OF COMMUNICATIONS AND PROVISION OF COMMUNICATION-RELATED INFORMATION ACT 70 OF 2002 MTN is prohibited from intercepting orany communication in the course of its occurrence or transmission”

5. MTN Loaded – no adult content

6. Entities involved in content provision value chain • These entities can be loosely classified as: • content creators • content distributors • third party content aggregators • portals • network operators; and • Consumers • All of the abovementioned parties play a role in the development, advertising and delivery of contents services of which adult content provision is a portion • Graphically the value chain can be represented as follows:

7. The Content value chain Please note that this traditional value chain oversimplifies the complexity of the management and control of the delivery of content. It assumes the mobile operator controls and manages the value chain. Consumer Content Creator Content Distributor Third party Content Aggregator Portal Network operator WASPA Broadcast Regulator Parents Various industry bodies Telecom Regulator Local, international and public protection agencies

8. MTN and WASPA • MTN requires all South African content providers wishing to utilise its network as a delivery mechanism to be a member of the Wireless Application Service Providers’ Association (WASPA) and to adhere to its Code of Conduct: • WASPA is an independent, non-profit organisation representing the interests of those that provide mobile application services in South Africa • It is in part funded by the three South African mobile networks • The code of conduct includes a framework for the provision of adult services to ensure adequate protection of children from potentially harmful content • The Code of Conduct equips consumers with a mechanism for addressing any concerns or complaints relating to services provided by WASPA members • MTN can withhold payment from any provider that contravenes the WASPA Code of conduct

9. The Internet as an Open Network • Inherently the internet is the ultimate open network -Any destination is an accessible IP address • It is the responsibility of the destination to secure the content • The balance between civil liberties and consumer protection must be managed Peer-to-Peer communication External billing models • The foundation of SMS, MMS, IM is direct communication between individuals • Control of adult content is extremely difficult in this scenario and • MTN may not intercept content • Operators have an element of control/censure where the customer is billed on our network • Advertising based model make this difficult – advertisements are not placed by the Mobile Operators Adult content: What makes it difficult? The complications for mobile operators 1 Consumer Content Creator Content Distributor Third party Content Aggregator Portal Network operator 2 2 1

10. Challenges • The provision of adult content is a large and lucrative industry and despite many attempts to control its distribution through regulation, it is fairly freely accessible through a variety of channels • Distributing adult content via a mobile phone is seen as a natural extension of a well established internet adult content industry and therefore a reality that is only going to become more prominent • MTN does not provide adult content via MTN LOADED but cannot avoid the use of its network where consumers wishes to use the network for adult services • MTN can and will however assist with specific initiatives but it must be realised that despite any best endeavours of blocking sites or services, adult content will still be available

11. Challenges cont… • A major challenge in this arena is around the regulation of international content providers as these companies are not subject to South African regulation and their movements are often very hard to track • The prepaid market poses a particular difficulty in tracking the profile of the subscriber and in providing any kind of relationship between the user and the SIM • The Content providers can move their sites (name and IP address) in an effort to counter the filtering of their sites • Minors can purchase additional prepaid SIMS’s to access restricted sites

12. Adult Content: Despite complications we are actingWhat additional measures are in place? • When MTN is notified of sites that may carry illegal content, the site can be blocked immediately from any further access by the MTN user base. • Unfortunately the organisations that operate services that provide illegal content move their services to new locations once they realise they are being blocked by networks and it is difficult to follow their movements. • MTN is in the process of implementing a product that will allow users to block access to local and international mobile numbers and URLs • MTN will make available to consumers filters or other tools that are designed to restrict access to content on the public Internet or other public data networks upon the development of reasonably effective, commercially available tools for mobile handsets • MTN is busy evaluating systems that will meet the business requirements and plans to have the solution implemented by the end of Q2 next year • This will allow parents to control and monitor the content that children are allowed access • A process needs to be put in place whereby an adult can on behalf of a child request for the child’s SIM to be restricted from viewing adult content

13. Adult Content: Despite complications we are actingSome current and potential future initiatives • Default keypad locking of device when not in use • Blocking of URLs and MSISDNs that is identified as containing illegal content • Nework capability to allow users to block access to specific URLs and MSISDNs • Informally monitoring the types of content delivered through the MTN network • No adult content through MTNLoaded • WASPA Code of Conduct introduced for SA WASPS • Device software similar to “Net Nanny” CURRENT USERS AND DIVICES NETWORK CONTENT CONTENT PROVIDERS IVR Local WASP Pull USSD InternationalWASP WAP Push SMS MMS USERS AND DIVICES NETWORK CONTENT CONTENT PROVIDERS • User Age Verification through various methods • All content is rated according to national and/or international rating scale • Proactively monitor traffic to specific URLs and mobile numbers to ensure that illegal content is made inaccessible FURTHER ACTIONS

14. Adult Content: What can still be done? • MTN will continue to do all that is fair and sustain its efforts to prevent minors from accessing pornography even though the company cannot completely deny access to adult content provision • Enforce adult verification on all adult services via network controlled measures e.g. • PIN locking and/or credit card verification before access is allowed to specific content types • Proactively monitor traffic to specific URLs and mobile numbers to ensure that illegal content is made inaccessible

15. Conclusion (1) • MTN will continue to do all that is fair and reasonable and sustain its efforts to prevent minors from accessing pornography • MTN will make available to consumers filters or other tools that are designed to restrict access to content on the public Internet or other public data networks upon the development of reasonably effective, commercially available tools for mobile handsets • MTN will comply with applicable laws regarding the protection of minors and cooperate with appropriate law enforcement agencies as required by law on reported and known illegal content • MTN offers no adult content on own content portal

16. Conclusion (2) • MTN requires all South African content providers wishing to utilise its network as a delivery mechanism to be a member of the Wireless Application Service Providers’ Association (WASPA) and to adhere to its Code of Conduct • Adult content will unfortunately always be accessible via the internet • No amount of technological intervention will completely eliminate the access to adult content • Parental guidance and monitoring will and still remains the critical success factor to deny children access to adult content