Mobile network supplier fined $100,000 for charging unwanted SMS services

Mobile networks supplier, Ericsson Telecommunication, has been fined $100,000 for charging a customer in Singapore for a premium rate service (PRS) that he did not subscribe for. The PRS, which consists of services such as ringtones and games made available through premium-rate text messages, was provided by Ericsson.

The customer had complained to the Infocomm Development Authority of Singapore (IDA), which found that he was using a 'recycled' mobile number someone else had given up in May last year. He had been assigned the number three months after the previous subscriber terminated his subscription.

IDA found out that Ericsson continued to impose charges for its PRS provided to the recycled number, despite that fact that the number had been placed under quarantine and was not in use during the three month period from May to August.

In addition to this, Ericsson's customer service hotline was also not in service during the period of IDA's investigations, making it impossible for the customer to contact Ericsson to cancel the service.

IDA also took into account that the company failed repeatedly to provide requested information to IDA by the stipulated deadline, even though the governing body had given it several deadline extensions.

According to The Straits Times, this is the highest fine imposed since stiffer penalties were introduced earlier this year to deal with an increasing number of complaints about such unsolicited premium-rate text message services.

On its part, Ericsson explained that the erroneous charging was due to a 'technical malfunction of its content provider’s system.'

However, IDA did not accept this explanation. It said Ericsson 'had relied solely on its content provider’s system to detect the termination of mobile services by end users and to unsubscribe the relevant numbers from the PRS,' and 'failed to put in place its own safeguards to ensure that it does not charge any person for any unsolicited services.'

It also gave a warning to Ericsson for not providing a working hotline number.

In March, the IDA increased the penalties for first-time offenders to up to $10,000, and up to $100,000 for the second offence.

Third-time offenders may have their licences suspended for at least six months, and further infringements could lead to longer suspensions and licence cancellation

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