Special Reports
Where IDA steps in
IDA’s approach to regulating the infocomm industry has been to allow market forces to play out as far as possible. However, even in a highly-competitive environment where consumers generally enjoy a greater choice of services and lower prices, there could sometimes be a mismatch between consumer interests and commercial interests, said Mr Leong Keng Thai, Deputy Chief Executive and Director-General (Telecoms & Post), Infocomm Development Authority of Singapore (IDA). Mindful of this, IDA will consider intervening in the market when it sees a need to safeguard specific consumer interests.
Recent examples of IDA stepping up to address consumer concerns include the regulation of Premium Rate Services and the introduction of data roaming caps. Premium Rate Services refer to mobile content services such as ringtone/game downloads, quiz services, news services and chatlines which are usually subscribed (and un-subscribed) to via SMS.
In a recent discussion thread on an online forum, one netizen reported having to pay over S$70 for a service that he was “100 per cent sure” he did not subscribe to. Another said she was billed S$75 for 25 SMSes that she did not recall receiving. IDA, too, had been receiving complaints from the public about how they were being billed for Premium Rate Services which they had not subscribed to.
To address this, several measures were introduced in 2012 to protect consumers from unexpected service charges. For example, IDA requires mobile operators to introduce a service enabling consumers to bar Premium Rate Services, protecting them from accidentally activating chargeable mobile content services and incurring high charges.
Another area where IDA saw the need to intervene was in the roaming charges levied on mobile phone subscribers, which resulted in some consumers receiving a “bill shock” when they returned from their overseas trips. A few years back, retiree and avid photographer Mr Peter Lai returned from a China tour to find himself saddled with a bill of a few hundred dollars for data roaming. “I used the handphone to surf the internet but I did not realise that I had to pay so much for the roaming charges,” he said.
This is an example of an issue where IDA has stepped in to manage the balance between consumer and commercial interests. As Mr Leong pointed out, “The commercial interest would be to encourage roaming. The consumer needs to know how much he is being charged and if the service is too expensive, he should be able to choose not to use it.”
Under regulations introduced to address this, mobile service operators are required to obtain explicit consent from subscribers before providing them with any roaming services (including data roaming services) instead of making them available by default. Service operators also have to implement a S$100 cap on charges if the roaming service is used inadvertently, and subscribers are able to activate or deactivate the roaming service more easily.
In making these regulatory moves, IDA’s approach has been to create conditions that give consumers more choices in terms of the services that they can have, but also allow them greater control so that they can make informed decisions about the use of these services. “We recognise that mobile phone is no longer being used just to make/receive phone calls. With the advent of devices such as smart phones and tablets, we have to look at how these new features are catering to different segments of consumers and, where possible, allow the consumers to manage their own needs,” said Mr Leong.
Another area where IDA continues to safeguard the interests of the consumer is in monitoring and enforcing Quality of Service (QoS) standards. While the monitoring of QoS dates back to pre-liberalisation days, the focus back then was on fixed line telephony because people depended on the telephones that they had at home. Today, with the proliferation of mobile phones and smart devices, what becomes more meaningful is the QoS that consumers experience when they use these devices, said Mr Leong.
In 2012, IDA progressively raised the QoS standards for 3G mobile services to ensure a better consumer experience, especially in nationwide outdoor areas and in new road and Mass Rapid Transit tunnels. The QoS standards for in-building coverage were also enhanced, and minimum standards were set for call success rates and drop call rates. In addition, IDA has also this year introduced into the Code of Practice for Info-communication Facilities in Buildings (COPIF) the need to set aside space for mobile equipment. This will help streamline the installation process, lessening the time needed for the mobile operators to boost mobile reception in and around buildings, and will allow consumers to enjoy a better mobile experience.
Going forward, as more and more people make use of their mobile devices to access data and applications, IDA will also be exploring the need to introduce QoS standards for data services. “Today, smart phones and tablets have become an important part of our daily lives,” said Mr Leong. “Consumers are using this mobility to the fullest extent and as they do, our thinking about QoS also has to change to encompass this.”