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Telecommunications Service Provider (Mobile Premium Services) Determinations 2010 (No.1) & (No.2)

Post Implementation Review – Australian Communications and Media Authority

On 18 May 2009 the Australian Communications and Media Authority (ACMA) announced regulation of premium short message services (SMS) and premium multi-media message services (MMS) to address a dramatic increase in consumer complaints about these services. From 5 March 2010 mobile carriage providers were required to provide barring of all premium SMS and MMS and to provide information to their mobile phone customers about how to request this service. From 28 July 2010 ACMA was able to issue an order for mobile carriage providers not to bill for services in breach of the Mobile Premium Services (MPS) Code 2009. Under the Government’s best practice regulation process a Regulation Impact Statement for the proposals was required but not prepared. Consequently, a Post Implementation Review (PIR) was required to be undertaken. The PIR states that barring was intended to help parents and guardians or employers to prevent unauthorised expenditure on premium SMS and MMS. Barring was also intended as an option for customers to manage financial risk by removing access to premium SMS and MMS which could potentially generate unexpectedly high bills. The do not bill measure was intended to enhance compliance with the MPS Code rules and to prevent content providers from causing significant financial detriment. This is especially the case when providers are based offshore. The PIR notes that about 8.2 per cent of all mobile phone customers have opted to have the barring service and that there has been a 33 per cent decrease in complaints about premium SMS and MMS, including a significant reduction in the number of complaints involving children. For business customers, the main benefit of the barring service has been the ability to bar premium SMS and MMS services for employees who are provided with mobile phones for work. The implementation costs on mobile carriers and mobile carriage providers for the barring and the do not bill measures were about $7.4 million with recurring annual costs of less than $1 million. These related to development of barring capabilities, various procedures, maintenance and other costs. The PIR has been prepared by the ACMA and assessed as adequate by the Office of Best Practice Regulation.