Telecommunications companies in Nigeria are developing a code of conduct for Value Added Services

Telecommunications companies in Nigeria are developing a code of conduct for Value Added Services (VAS) providers, in view of the spate of unsolicited Short Messaging Service (SMS), delivered to the phones of holders of Nigeria’s 129 million lines, and other unwholesome practices, industry insiders have said.

Earlier, the Nigerian Communications Commission (NCC), the telecoms regulator, said it was planning to come down hard on mobile operators over rising complaints from telecoms subscribers regarding forceful activation of various VAS without explicit consent.

Beyond that, these services are auto-renewed, resulting in perpetual look-in of subscribers by the VAS providers. In view of this, Mobile Network Operators (MNOs) are leaving no stone unturned in their efforts to curb this menace.

Matthew Wilsher, chief executive officer, Etisalat Nigeria, confirmed the development, saying, “Yes, we have written a code of conduct with VAS providers. We’ve made them resign their contracts in line with this new code of conduct. This will give us more control of the business relationship”.

Wilsher added that if VAS providers abused the privacy of telecoms customers, Etisalat could take the telecoms customer off that particular service and terminate the existing contract with the VAS provider. Sources say that other telcos are already moving in this direction, adding that operators will not fail to sever business relationships with any VAS provider in breach of the policy.

Ugo Okoye, chief executive officer, iConcepts, a le

ading VAS provider in the country, says the move is still inadequate to combat the issue of unsolicited SMS and other unwholesome practices.

 “There are many parties involved in unsolicited SMS. I walked into a shop to buy something, and next thing the attendant wants my contact details. I gave it to him, and the next day, I received an SMS from the shop on new products. Is that the fault of the VAS provider?” he queried.

There exists no legislation on privacy, data protection and permission-based marketing, according to Okoye. “There are no rules here. It is not just content services flying around; it’s SMS from banks, stores, and churches. The bulk SMS providers are also culpable in the unsolicited SMS phenomenon”, he added.

Okoye urged the telecoms regulator to set up an Industry Working Group (IWG) for the VAS industry in order to develop a regulatory framework for the sub-sector.

 The volume of business activities in the mobile VAS segment of the Nigeria’s telecoms industry is currently valued at $200 million year-on-year (YoY), according to available statistics.

The figure is expected to more than double, to reach $500 million in the next few years. 

“The networks themselves do blast SMS on new promotion and services at all times, even though it’s against government directive which says that they should minimise and restrict messages to specific periods”, Okoye added.

Industry watchers are of the view that the spate of unsolicited messages is indicative of the near cut-throat competition in Nigeria’s vibrant telecoms market.

Mobile operators are in a fierce battle for marketshare to the pain of telecoms subscribers who are bombarded with SMS on new services and promotions.

 The GSMA, a global body protecting the interest of mobile operators, said in a recent report that “subscribers regard unsolicited SMS as an invasion of personal space and expect their operator to provide protection.”

The report further said, “if a telecoms operator fails to protect customers, permanent damage to trust and brand loyalty can result”. Some telecoms operators had earlier complained that some unscrupulous individuals, through highly specialised software, sift through the internet, specifically social media, to generate the subscriber details.

This information is stored in a database which the individual could use at any time to disseminate spurious messages. “We will investigate the veracity of this claim before we act. An official investigation has begun to ascertain the real source of these messages”, said Maryam Bayi, director, Consumer Affairs Bureau at the NCC.

According to her, consumer protection is a critical part of the commission’s mandate. “If telecoms consumers feel that they are protected from market abuses and unfair trade practices, their confidence will increase”, she added.

news source: businessday