Auckland, 23 October 2007 – The Telecommunications Carriers’ Forum (TCF) Board today issued its draft Mobile Premium Rate Messaging Services Code for public consultation. The Code seeks to set standards for mobile telecommunication providers, mobile 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 draft Code was prepared by a TCF working party formed in August 2007 which includes NZ Communications, Mobile Messenger, Run the Red, Sybase 365, Telecom, TUANZ and Vodafone.
While the current management of Mobile Premium SMS Services is working effectively, the TCF considered that customers, and the industry, would benefit from a non regulated industry code of conduct that would provide stronger and clearer industry guidelines as to the running and advertising of premium services.
Malcolm Alexander, Independent Chair of the TCF, said “Everyone’s goal is to improve the customer experience and increase their confidence in the telecommunications industry. I congratulate the Working Party delivering the draft Code ahead of schedule.”
Public submissions on the draft Code must be sent to the TCF by 19 November 2007. A copy of the Code and the process for making submissions is available on the TCF website: www.tcf.org.nz/premium.
The draft Code will be updated following the submission process and it is expected to be finalised by 20 December 2007.
Background
New Zealand consumers are increasingly using mobile service offerings as a regular form of entertainment. Mobile Premium Rate Services (SMS, MMS & WAP above standard rates) is one way that enables users to do this. In 2006 Premium SMS Services were launched in NZ and there has been 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 Rate Services market.
Mobile Service Providers and Content Providers invest heavily to promote these services. Users interact directly via shortcodes promoted by these parties 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 various procedures and monitoring adherence to these guidelines.
Unlike other services that telecommunications providers offer, such as voice and standard SMS, Mobile Premium Rate Services are managed by parties external to the telecommunications providers; therefore they rely on these Mobile Service Providers to adhere to individual telecommunications providers guidelines and contractual obligations that may vary across the industry. Misleading advertising and inappropriate use of Mobile Premium Rate Services has the potential to undermine end user confidence in the market.
For more information visit www.tcf.org.nz/premium or contact:
Malcolm Alexander ph 027 737681
Telecommunications Carriers' Forum
Ground Floor, 3/44 William Pickering Drive, Albany, Auckland
Tel: +64 9 414 9713 / Fax: +64 9 414 5532 / Email: info@tcf.org.nz