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Boost to consumer confidence for mobile premium messaging services


Summary: New industry standards agreed for the process of operating and advertising these services

Auckland, 27 February 2008

Mobile users can now have increased confidence using premium entertainment services like ringtones, wallpaper, games, music downloads, operator chat and txt2win trivia games.

The Telecommunications Carriers’ Forum (TCF) has finalised the Mobile Premium Messaging Services Code which sets standards for mobile telecommunication providers, mobile service providers, and content providers.  The code was developed by the TCF in conjunction with mobile content providers and the Telecommunications Users Association (TUANZ).

“The development and endorsement of the Mobile Premium Messaging Services Code in under 5 months shows the level of cooperation and commitment that exists within the industry to delivering the best possible customer experience,” newly appointed TCF CEO, Ralph Chivers said.  “I am particularly pleased with the buy-in we have had from the wider industry including the consumer-rights and advertising sectors.  This was a genuinely collaborative effort.”

Since the launch of mobile premium services in 2006, NZ consumers have dramatically increased their use of mobile service offerings as a regular form of entertainment.  But until now there have been no industry standards or guidelines around the process of operating or advertising these services.

“The Code outlines strict standards for ensuring customers know what they are signing up for before they incur any costs, for ensuring that customers receive regular updates about the costs they are incurring (including usage alerts) and for ensuring that it’s easy to cancel a service at any time.” Mr Chivers said.  “This will give confidence to users that they will remain fully informed, and in control, at all times.” 

The Code also covers advertising guidelines and has specific rules for chat, age-restricted and video services. Vodafone’s Head of Advertising Sales & Managed Partners, Bridget Gallen, notes the Code’s Advertising Guidelines Section provides extensive best practice advertising guidelines.  “We believe the Code will be hugely beneficial to the Advertising Standards Authority and the Television Commercial Approvals Bureau in dealing with advertising for all premium messaging services going forward.”

Jo Rich, Regional Director of mobile service provider Sybase 365 agreed that the Code is an important step forward.  “The Mobile Premium Messaging Services Code is a major milestone for all premium mobile services in New Zealand. The collaboration demonstrated by carriers, content providers and consumer bodies alike reflects the strong desire of all parties to ensure this market grows in a sustainable and responsible manner and in the best interests of the end consumer.”

TUANZ CEO Ernie Newman also welcomed the introduction of the Code. “With opportunity comes responsibility and TUANZ is pleased that under this code those who deliver the services to the user are ultimately responsible for ensuring that all obligations by all parties are met in a timely manner."

“The introduction of this Code is likely to boost the number of Premium SMS text services being delivered to New Zealand users. It will be interesting to see what entrepreneurial products will be offered in a market with over 100% mobile penetration,” Mr Newman said.

The Code is part of the TCF’s suite of voluntary codes but is expected to be widely adopted by mobile carriers and content service providers alike. 

Telecom's senior manager of business development, Michael Ramsay, says: "Our shared goal is to improve the customer experience and to ensure that we have workable industry-wide standards in place for the industry to follow." 

Vodafone’s Ms Gallen also said of the Code: “we feel consumers, as well as the wider industry, will all benefit.”

For more information visit www.tcf.org.nz/premium or contact:

TCF CEO, Ralph Chivers ph 021 576 424
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



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