Exetel to block premium SMS by default

 

Removes 90 percent of billing disputes.

Mid-tier telco Exetel has announced it will block customers from using premium SMS services by default, a month before the industry deadline to introduce provisions that enable customers to stop the service.

All Exetel customers will be auotmatically barred from premium SMS on July 1, a deadline for the Australian Communication and Media Authority (ACMA) determination that mobile providers implement an ability to turn off some SMS (short message service) or MMS (multimedia message service) functions.

Exetel CEO John Linton said he isn't interested in the lucrative revenue stream provided by premium SMS services.

"We have no wish to add to our revenues by ripping off our customers," Linton told iTnews. "By barring premium services, we expect to remove 90 percent of billing disputes."

Exetel customers can choose to go out of their way to manually enable the ability to buy premium SMS products via a web interface, but Linton estimated that less than two percent of customers would genuinely sign up for the service.

Telstra has not said whether it would take a similar strategy, but has claimed to be the first telco to allow customers to bar premium services, and offers a double opt-in arrangement for all SMS subscription services.

The telco claims it also terminates premium SMS providers with continued high and unacceptable complaint levels associated with their services.


Exetel to block premium SMS by default
"Very sad. There are many valid Premium SMS products that offer consumers services via this micro-payment platform. Unfortunately there are a minority of dodgy operators that spoil it for the ..."
By RB
 
 
 
Comments: 2
Willtry
Jun 9, 2010 2:35 PM
All premium SMS products should be barred by default and only activated at the customers request this will stop many disputes.
RB
Jun 9, 2010 6:49 PM
Very sad.
There are many valid Premium SMS products that offer consumers services via this micro-payment platform.

Unfortunately there are a minority of dodgy operators that spoil it for the rest.

Simple answer, rather than shutting down the facility completely, is to clean-up the industry.

Why do the major TV networks take these dodgy providers as advertisers? Why do the major premium SMS providers allow the dodgy operators to use their network?
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