Mobile operators have scrapped outsourcing deals with value-added service (VAS) providers such as OnMobile and Hungama after being rapped by the telecom regulator.

The Telecom Regulatory Authority of India had pulled up mobile operators for mismanaging VAS services.

The regulator had pointed out that consumers were not being informed when VAS services were activated and in some cases the operators were found to be billing subscribers without information.

Trai regulation

To stop this practice, the TRAI had brought in a regulation which mandated operators to seek subscribers' consent in writing or via SMS within 24 hours of activation of the value-added service.

The regulation was put in place last year but the operators expressed difficulty in following this new rule. Instead they have done away with the outsourcing model with VAS players in a bid to address the concerns raised by the TRAI.

“We have brought in all push-promotions under an ‘in-house model'. This model will comprise of a subscription engine, management system, hardware and software. This being in-house, the operator will have greater control on the VAS activations,” said an industry source. The mobile companies have agreed to implement this across all circles by May.

Sms alert

In addition, the service providers have promised that they will inform the consumer through SMS at least three days before the due date of renewal of a value-added service.

The SMS will contain information on the due date for renewal of such service, the charges for renewal and toll free telephone number for unsubscribing the value-added service.

However, the TRAI has not yet withdrawn its earlier issued regulation which is creating doubts about whether the regulator has accepted the formula proposed by the operators.

>tkt@thehindu.co.in

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