IDA steps in to halt “bill shocks”

Consumers now have the option to block third-party providers that send chargeable Premium Rate Services (PRS).

The Infocomm Development Agency (IDA) has directed mobile operators in Singapore to allow consumers to opt for a PRS barring service, which would enable them to stop sending/receiving chargeable PRS offered by third-party providers, and not be billed for them.

To minimise “bill shocks”, mobile operators will also be required to provide an option for consumers to limit their data roaming usage in a monthly billing cycle to $100.

IDA has also launched a review of its Quality of Service (QoS) framework for mobile telephone services with a view to raise the standards for mobile QoS indicators such as service coverage, success rate and drop call rate.

To address consumers’ feedback that the broadband speeds offered under their plans have not matched up to what were advertised by operators, IDA has decided that operators providing broadband services must publish the typical speeds that consumers can expect to experience. IDA will be consulting the operators on the proposed parameters for publication.

Under the PRS barring service, a consumer will not be able to send or receive any chargeable PRS. Accidental subscription to any service will also not be billed.

The IDA expects mobile operators to put in place the PRS barring service by the first quarter of 2012, so that operators have sufficient lead-time to iron out the implementation details and service provisioning in the meantime.

With immediate effect, IDA will also impose more stringent penalties for contravention of the PRS Code, where errant PRS providers will face heavier financial penalties with repeat offenders having their licences suspended or cancelled. Where circumstances warrant, IDA will continue to exercise its right to suspend or cancel a PRS provider’s licence at any time.

From 1 July 2011, mobile operators will have to obtain explicit consent from their subscribers before providing any roaming services (including data roaming services), which may currently be available by default to mobile subscribers.

Mobile operators are also required to explicitly direct consumer to the prices, terms and conditions of the roaming services to ensure that consumers can make an informed choice on whether or not to subscribe for such services.

Consumers will also soon be able to limit their data roaming usage in any single monthly billing cycle to no more than $100. IDA has directed mobile operators to offer a free data roaming service suspension option that caps data roaming usage at $100. Operators are expected to implement such a service by the first quarter of 2012.

While the IDA has established these new requirements, the agency has left it to the operators to work out the specific implementation methods and to supplement them with additional consumer protection measures commercially if they wish to do so.

Operators would also need the lead time to iron out the implementation details and service provisioning to meet IDA’s requirements.

Leong Keng Thai, Director-General (Telecoms & Post) of IDA said, “These new measures serve to protect them from charges incurred by accessing PRS and data roaming services unknowingly, and will give them more control over their use of such services.

IDA expects that these measures will also help to reduce mobile ‘bill shocks’ and time-consuming disputes over charges, thus benefitting consumers, mobile operators and PRS providers in the long run. However, notwithstanding these measures, consumers still have a part to play in exercising due care and diligence to understand the prices, terms and conditions of any service before they subscribe to it.

“Information transparency is also an important prong of our regulations in safeguarding consumer interests. With clearer information on the Internet broadband access speeds, consumers can make informed choices when choosing their broadband plans,” Leong added.