The Infocomm Development Authority of Singapore (IDA) is tightening rules for service providers of 1900 numbers and other premium rate mobile services, after complaints from cellphone users in the past year.

It issued a code of practice on Wednesday for companies providing premium rate services over the public telecoms network, and their billing operators.

This move, which aims to promote responsible business practices, will also give firms more certainty on how they should operate. Consumers will in turn have greater peace of mind and confidence when purchasing chargeable premium rate services such as mobile phone wallpapers, ringtones and news alerts, said the the IDA.

"For instance, with the new code, premium rate service providers will have to indicate the cost of all chargeable SMSes sent, within the message itself. They will also need to send non-chargeable messages to consumers, to confirm their service subscriptions, and follow-up with regular reminders on charges. Hence, consumers will always be on top of costs they have incurred," explained IDA in a statement.

Prior to the code, premium rate service providers have also called for clearer guidelines on their operating environment. The code comes after a public consultation in May and careful consideration of all 15 industry submissions that were made.

The new code will take effect from Dec 16.

IDA Deputy Chief Executive and Director-General (Telecoms) Mr Leong Keng Thai said: “Many in the premium rate services industry already have good business practice in order to keep customers. The new Code formalises these practices so that all businesses have increased clarity on acceptable conduct, and consumers have greater protection. By enhancing consumers’ confidence in using premium rate services, service providers benefit too because it will help to attract more users and the industry can continue to grow.”

The new code complements the existing Telecoms Competition Code, which already sets out obligations for all telecoms licensees. It is tailored towards premium rate service providers who are becoming an increasingly prominent community in the telecoms services ecosystem.

Premium rate service providers who flout the regulations may face financial penalties of up to S$1 million, or have their licence suspended, or both.

"While the Code safeguards consumers’ interest, consumers should also continue to be mindful of the services they subscribe to, and to read carefully the service terms and conditions before subscribing to any service. Parents are encouraged to educate their children to do the same, to prevent misuse of premium rate services," advised the IDA.

More details on IDA’s Code of Practice for the Provision of Premium Rate Services can be found at IDA’s website.