COMPANIES providing ringtone downloads, SMS jokes and mobile news alerts will soon have to play by stricter rules.

Under a new code of practice issued by the Infocomm Development Authority of Singapore (IDA) on Wednesday, providers of these "premium rate" services, including mobile games and 1900 chatlines, will have to be more transparent in their advertisements and also make clear to consumers whenever they are sending chargeable messages.

The code, which will come into effect on Dec 16, specifies that the companies will have to :

- indicate the cost of all chargeable messages within the message itself

- send regular, free reminder messages to consumers on the costs of the services they are subscribed to

- maintain a manned customer service hotline during local business hours and keep record of complaints

An IDA spokesman said the rules were mostly drawn from the best practices of the more responsible companies in the industry and also take into consideration consumer feedback and suggestions from 15 industry players that took part in a public consultation in May.

Besides targetting the companies that provide these services, the code also addresses the responsibility of the telcos.

These operators, such as SingTel, StarHub and M1, provide the networks through which the messages are sent, and also bill consumers on behalf of the service providers.

The code stipulates that they cannot demand payment from their subscribers when the services are being disputed, and that they have to provide information on the service providers and charges in the mobile phone bills.

The telcos will also have to help customers get in touch with these service providers.

The new code of practice comes as SMS and chatline services become more common in Singapore. There are now some 250 such service providers in Singapore, most of them local companies.

An IDA spokesman said the agency has received more complaints from consumers in recent years.

Since 2006, the agency has censured 24 companies for running afoul of the licensing rules and the Telecoms Communication Code. Most of these companies were given warnings or fines of $1000 to $2000.

The most serious case happened during Chinese New Year last year, when one provider charged 300,000 mobile users for SMS greeting messages that they did not ask for.

The company, mTouche, was later fined $150,000, and had its licence suspended for six months.

But IDA director-general (telecoms) Leong Keng Thai said these rogue companies are a minority.

'Many in the premium rate services industry already have good business practice in order to keep customers,' said Mr Leong, who is also the deputy chief executive of the agency.

'The new code formalises these practices so that all businesses have increased clarity on acceptable conduct, and consumers have greater protection.'