Text for service - 20
Apr 2006, The Star
TURN a page in any newspaper or magazine and there will be advertisements
offering SMS-based services and they can range from information on
the stock market to what the future holds.
All it involves is sending a text message from your phone and almost
instantaneously you will be told which stocks are doing well or what
the day has in store for you.
SMS-based services not only have come a long way but they have also
become a lucrative business. "I'm sure there is an SMS-based
service for everyone because it is such a lucrative business today,"
said Lester Neil Francis, group chief operations officer for AKN Messaging
Technologies Sdn Bhd.
Whether the services matter to both you and me is very subjective,
said Francis. "It's all based on the end user and their
perception on what they deem useful for their everyday life,"
he said.
For instance, a football enthusiast may find real-time soccer alerts
useful and gaming enthusiasts would rather have the results sent to
them than to have to peruse the newspaper for the winning numbers.
"Supply follows demand. The numerous advertisements is proof
enough that there is a demand for such services," said Janice
Chong, industry manager for Frost and Sullivan's ICT practice section.
She said the younger crowd - those below the age of 30 - usually goes
for entertainment services such as chatting, horoscopes and music
downloads. "It's entertaining and at the same time,
they get to expand their network of friends," said Chong.
A businessman, on the other hand, would not be interested in any of
these services, she said. "They usually go for services
such as stock market updates or mobile commerce that is more of use
to their businesses," Chong said. Caveat emptor
As so many other services today, consumers have to practice caution
before subscribing.
Because the advertisements highlight services instead of the terms
and conditions, most of the time users are duped because they don't
bother looking at the fine print.
Francis said that content providers know most subscribers are youths
who do not take the time to read the fine print because they are more
interested in the services. "Also, a lot of SMS content
providers are looking to make a quick buck especially these past few
years," he said.
In July last year, Federation of Malaysian Consumer Association (Fomca)
said it received about 3,000 complaints from consumers who claimed
that they were duped by irresponsible service providers.
They alleged that they were charged for services that they did not
subscribe to but Fomca's investigation revealed that the users had
signed up for the service once and were bound by the terms and conditions
to keep receiving more messages.
Fomca said that a lot of companies resorted to the same practise -
once users sign up, they will be roped into a "club" and
new content will be sent to them at a charge of RM1 per SMS from then
on.
Also, by the time most user realised their mistakes, they would have
lost a few ringgit already. New Guidelines
In August last year, Malaysian Communications and Multimedia Commission
(MCMC) introduced guidelines for content providers.
Unfortunately, although there was a reduction in the number of complaints
received, the guidelines were still not strict enough to stop some
content providers.
The guidelines required content providers to include the price in
each text message so that subscribers know exactly how much they are
being charged.
And the content providers also have to send reminders to users about
their subscription.
However, it was difficult to monitor whether the content providers
were complying with the guidelines, said Francis. "For
example, it was difficult to tell whether reminders were sent because
we wouldn't know unless we subscribed to the service," he said.
Another problem with the original guidelines was the lack of penalties,
he added.
So, the guidelines were revised and penalties were introduced to deter
irresponsible content providers. "Errant content providers
can be fined or have their licenses terminated under the new guidelines,"
he said.
To protect consumers from irresponsible content providers, the telcos
and service providers have to keep working with MCMC to improve the
guidelines, said Francis. |
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