KEY POINTS:
Mobile phone companies and advertisers have banded together to create an industry code for "premium" services such as music downloads and games after a number of complaints.
Telecom and Vodafone, with industry and consumer representatives, have created a draft code of conduct covering services for which customers pay
a rate above the basic mobile charge.
These include ringtones, wallpaper, games, music downloads, chat services, and txt2win trivia.
Such features have attracted numerous complaints to the Advertising Standards Authority over the past 12 months.
Most complaints centred on subscription-based services where consumers felt they had been misled over ongoing subscription costs or a lack of clear cancellation instructions.
Telecom's senior manager of business development, Michael Ramsay, said: "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."
Director of mobile marketing company Run the Red, Ben Northrop, said New Zealand had been behind other countries in the uptake of premium mobile services and consumers were not as educated on how some of the services worked.
He said problems consumers had with the services were exacerbated by smaller operators not adhering to existing rules set out by Telecom and Vodafone.
"The aim for everyone involved, from service providers like ourselves and the operators and the actual clients is to get some kind of middle ground where we've got a clear code of conduct - rules to protect the consumer so that consumers are aware of the cost and frequency of the message and to guarantee quality," said Northrop. "It's a balancing act between making it a viable business and making sure people are having a good experience with it."
Northrop said they didn't want the negative attitude towards mobile telephone services to affect the industry in general.
"People enjoy customising their phones and they shouldn't get burned or feel ripped off by a service that they're not too sure about," said Northrop.
Head of premium TXT at Vodafone, Bridget Gallen, said the code provided clear guidelines agreed between Telecom, Vodafone, likely third mobile operator New Zealand Communications and content partners on how premium messaging should operate.
"We look after the needs of our customers and also we want to drive revenue so we need to balance that," said Gallen.
The new rules include requiring fees to be clearly set out, letting the consumer know every time they have incurred $30 worth of service charges and standardising the texting of "stop" as a service opt-out.
Although the code is voluntary, both Telecom and Vodafone are requiring companies using their networks to provide premium services to comply with the code.
Public submissions on the code can be made before November 19.
PREMIUM SERVICES
* A new code of practice is due to be introduced covering premium mobile services.
* Although voluntary, both Telecom and Vodafone are requiring companies using their networks to provide premium services to comply with the code.
* The code seeks to balance consumer interests with the need for mobile service providers to make money.
