Telstra & Optus clamp down on premium SMS shonks

Stuart Corner
Monday, 09 November 2009 09:04

IT Policy - Government Tech Policy

Both Telstra and Optus have selected US based specialist WMC Global to monitor mobile premium SMS services advertising and SMS message flows during services opt-in and participation to ensure these conform to their respective contract requirements and the industry code.

WMC claims to intercept in market (ie exactly as the consumer experiences them) TV, print and Web-based advertisements for mobile premium SMS services. It then tests the services itself to ensure they are operating according to individual carrier codes of conduct and the Mobile Premium Services Code and reports the results to its clients.

WMC say it then "escalates uncorrected, egregious, and repeated breaches directly to participating mobile carriers, who may take action under their commercial contracts by, for example, imposing financial penalties or shutting down the shortcode."

Services covered include chat, televoting, and premium content downloadable to mobile devices, such as ringtones, wallpapers, games, videos, and text alerts. WMC claims to operate on three continents and to intercept more than 30,000 mobile premium services advertising campaigns each month.

The Mobile Premium Services Code was developed jointly by carriers, content providers, and consumer representatives through the Communications Alliance and, earlier this year, was registered by the Australian Communications and Media Authority.

Engagement of WMC by Telstra and Optus follows calls earlier this year for the industry to tighten up on its handling of premium SMS services from ACCC chairman Graeme Samuel. In an impassioned speech to the Australian Telecommunications Users Group annual conference Samuel said: "Today, the ACCC is putting the telecommunications industry on notice. Misleading advertising, unfair contracts, inadequate disclosure and subscription scams are all in the ACCC's sights. Standards must improve or risk increased scrutiny and action...The ACCC is drawing a line in the sand – we're saying to the poor performers, and there are many of them, mend your ways."

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