Consumers will have a clearer idea of the costs they incur from premium rate services delivered over the public telecoms network, with the introduction of a Code of Practice for companies providing such services as well as their billing operators.

From 16 December 2007, premium rate service providers will have to indicate the cost of all chargeable SMSes sent, within the message itself.

Issued by the Infocomm Development Authority of Singapore (IDA), the Code of Practice aims to promote responsible business practices and give firms more certainty on how they should operate. Consumers will also have greater peace of mind and confidence when purchasing chargeable premium rate services such as mobile phone wallpapers, ringtones and news alerts, said IDA.

With the new Code, which takes effect from 16 December 2007, premium rate service providers will have to indicate the cost of all chargeable SMSes sent, within the message itself. They will also need to send non-chargeable messages to consumers to confirm their service subscriptions, and follow-up with regular reminders on charges. A customer service hotline also has to be maintained, at least during local business hours, so that consumers can contact the service providers easily for queries regarding services and charges.

For network operators who bill consumers on behalf of the premium rate service providers, the Code of Practice requires them to provide assistance to consumers in cases of dispute over charges, and ensure that the bill contains information such as the premium rate services that the consumer is being billed for, the charges incurred, as well as the customer service hotline for the services so that consumers know who to call. They are also not to demand payment for any service that is being disputed and pending resolution between the consumer and the premium rate service provider.

IDA Deputy Chief Executive and Director-General (Telecoms) Mr Leong Keng Thai said many in the premium rate services industry already have good business practices in place in order to retain their customers. “The new Code formalises these practices so that all businesses have increased clarity on acceptable conduct, and consumers have greater protection,” he said. “By enhancing consumers’ confidence in using premium rate services, service providers benefit too because it will help to attract more users and the industry can continue to grow.”

According to IDA, the introduction of the Code of Practice comes after a public consultation in May this year and careful consideration of all 15 industry submissions that were made. The new Code complements the existing Telecoms Competition Code, which already sets out obligations for all telecoms licensees. Premium rate service providers and their billing operators will have to abide by it, in addition to existing licensing requirements and the Telecoms Competition Code. Premium rate service providers who flout the regulations may face financial penalties of up to S$1 million and/or licence suspension, said IDA.