REGULATORY REVIEW OF MOBILE CONTENT PREMIUM RATE SERVICES

PhonepayPlus, the phone-paid services regulator, today announced a
review of mobile premium services which in the UK are worth around £350
million annually, and include digital content such as music ringtones,
games and other downloads. Recent evidence of significant consumer harm
indicates the need for a strategic approach to dealing with failures in
compliance.

The spontaneity and simplicity of the phone-paid
payment mechanism allows millions of consumers to enjoy mobile services
such as ringtones and other downloads, competitions and TV voting. Most
consumers use these services without worry or aggravation.

However, new figures have led to increasing concerns about some services:

• In the first three months of this year, PhonepayPlus received more
  than 4,500 complaints related to mobile. This equates to 80% of all
  complaints received, a 40% increase on mobile related complaints over a
  similar period last year;
• In 2007, PhonepayPlus adjudicated on 33 mobile services with total fines in excess of £360,000;
• By March 2008, PhonepayPlus had already adjudicated on 15 mobile
  services, resulting in fines of £223,500. Today, PhonepayPlus published
  adjudications on four more cases, resulting in fines of £68,000; and
• 45% of premium-rate numbers and short codes checked by consumers on
  PhonepayPlus' website this year related to mobile services, as compared
  to 24% this time last year.

The review, which PhonepayPlus aims to publish in
July, will provide an overview of mobile phone-paid services, and
identify issues affecting UK consumers. Of particular interest to
PhonepayPlus at this early stage are:

• Unsolicited promotions, especially text messages;
• Price transparency and the use of words that indicate content is ‘free'; and
• Subscription services (e.g. ringtones) and the ‘STOP' command

"There are clear rules when it comes to the promotion, content and
delivery of mobile phone paid services. We expect these rules to be
followed and any failings of compliance will be punished," said George
Kidd, Chief Executive of PhonepayPlus.

"PhonepayPlus will work with all interested parties
to understand the issues, examine the evidence and, if necessary,
propose solutions."

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For further information, please contact:

PhonepayPlus press office on (020) 7940 7415 or (020) 7940 7447.

NOTES TO EDITORS

About PhonepayPlus

PhonepayPlus is the organisation (previously known as ICSTIS) that
regulates phone-paid services - the goods and services that you can buy
by charging the cost to your phone bills and mobile pre-pay accounts.
Further details of its work can be found at /.