The Wireless Application Service Providers' Association (Waspa) is clamping down on content providers that breach its code of conduct.
However, an analyst has argued that the association does not have enough power, and the duty to protect subscribers is actually a network operator issue.
Recently, there has been a flurry of complaints on consumer site HelloPeter, with people saying they are being billed for content for which they did not subscribe. One complainant states that his daughter, aged 11, replied to an SMS to get free downloads.
Despite the phone being switched off, the complainant alleges they were billed R5 a day in subscription fees, and no downloads were received.
Another complains he is not aware of having subscribed to a service, but has been charged R400 in one month.
Huge fines
Leon Perlman, Waspa chairman, says this type of complaint is a continual problem. He says the association has fined companies hundreds of thousands of rands for breaching its code of conduct.
One recent case, against international content provider Buorngiorno, saw the company being fined R20 000, while South African company Blinck Mobile was fined R30 000. Both companies had to pay back the complainant for the download charges.
The Waspa code provides, among other things, that children accessing the service have their parents' permission. It also requires easy opt-out measures, and that customers cannot automatically be registered for a service.
Perlman says the fines imposed depend on how widespread the issue is, and whether companies have previously contravened its code. The independent non-profit association was formed in 2004 and represents the interests of organisations providing mobile application services in SA.
Membership is compulsory for Wasps, but not for the content providers, Perlman says. However, because the Wasps bear responsibility for the content, many of them insist the information providers sign up in order to mitigate risk.
Perlman warns that companies breaching its code of conduct can have their services shut down, in addition to being fined. He says the company actively monitors the industry and works with the network operators to investigate alleged contraventions.
Off net
Vodacom's executive head of corporate communications for business, industry and technology, Nicolene Visser, says the cellular operator is not directly responsible for content.
She explains that mobile content is provided by third-party content providers, and Vodacom requires that its content providers adhere to Waspa's code. “Contravention of the Waspa code of conduct could result in being disconnected from Vodacom's network,” Visser adds.
She explains that Vodacom, in conjunction with Waspa, has built certain mechanisms into the code, which third-party content providers are required to adhere to. This includes a welcome SMS, a reminder SMS and an opt-out mechanism.
MTN did not respond to a request for comment.
Not enough
Steven Ambrose, MD of World Wide Worx Strategy, says networks are not doing enough to protect consumers. They take no responsibility and they “just provide the system on which all this happens, and are not responsible for what happens,” he adds.
Waspa is doing a credible job of trying to police the industry, Ambrose says. However, this form of “rouge revenue making” is increasing, he says.
Ambrose says the networks should have a duty to reverse the charges straight away, and the content providers should then provide the proof that the person they are charging has, in fact, signed up.
“Networks love to own the customer when it suits them, but take no responsibility when it doesn't.”
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Waspa gets tough
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