About Mobile Messaging in NZ
New Zealand consumers are increasingly using mobile service offerings as a regular form of entertainment. Mobile Premium Messaging Services (SMS, MMS & WAP above standard carriage rates) is one way that enables users to do this. In 2006 Premium SMS services were launched in NZ and there has seen significant growth since that time. The premium infotainment services on offer include ringtones, wallpaper, games, music downloads, operator chat, and txt2win trivia. Global trends show exponential growth in the Mobile Premium Messaging Services market.
Mobile Content Service Providers and Content Providers invest heavily to promote these services. Users interact directly via shortcodes promoted by Content Service Providers and Content Providers, to receive their content or service. As the number of services being offered increases there is some concern as to how the services are being managed and who is responsible for creating the guidelines and monitoring adherence to these guidelines.
Unlike other services that telecommunication service providers offer, such as voice and standard SMS, Mobile Premium Messaging Services are managed by Content Service Providers external to those telecommunication service providers , therefore there is a reliance on these parties to adhere to individual guidelines and contractual obligations that may vary in content.
Misleading advertising and inappropriate use of Mobile Premium Messaging Services has the potential to undermine end user confidence in the market.
While the current management of services is working reasonably effectively, TCF members consider that customers, and the industry, would benefit from a non regulated industry code of conduct that would provide stronger and clearer guidelines as to the running and advertising of premium services, and therefore reducing complaints.
Mobile Premium Messaging Services Code
The TCF established Mobile Premium Messaging Services working party in August 2007 to prepare a non regulated industry code of practice to set standards for telecommunication service providers, content service providers and content providers, covering issues such as the customer authorisation and notification process, advertising requirements and additional rules relating to subscription and chat services.
The Mobile Premium Messaging Services Code was endorsed by the TCF in February 2008.
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