|
Explaining the reasoning behind the directive, a Trai release issued
today states, "The Authority has observed that in the last
few months, a number of operators and also some independent agencies
are increasingly providing value added services like quiz, ringtones,
televoting etc. through SMS. In most of these cases, the charges
for theses services are more than the normal published tariffs.
The customers are informed about these value added premium rate
services through SMS, advertisements in newspaper or television.
But in this communication, the cost implication of the service is
not intimated. Sometimes the messages are only followed by wordings
'T&C apply'. This practice of service providers works against
the interest of consumers."
The order is particularly relevant to television companies that
have SMS as a key element of their shows that have high levels of
interactivity. A recent example is that of Sony Entertainment Television's
super successful reality-based musical talent hunt Indian Idol.
All SMS "televotes" were charged at Rs 3 as against the
normal tariff of Re 1.
And these are no small numbers that we're talking about. In two-and-half
months, Rs 300 million in revenues is what Indian Idol reportedly
generated just from mobile phone companies. Calculating a 75:25
revenue share in favour of Sony that's Rs 225 million that would
have been raised through the mobile telephony platform.
The Trai order would also impact Star India, which has plans to
raise interactivity (and the revenues that flow from it) to new
heights for its 2005 blockbuster Kaun Banega Crorepati (KBC)
II.
Of course, a point that needs mentioning here is that in the case
of "high-involvement" shows like Idol and KBC,
viewers are unlikely to have any qualms about paying premium rates
for the SMSs they send in. Therefore it is just a matter of clearly
informing them of the fact.
|
