Telecom Lead India: Mobile
operators have cancelled outsourcing deals with value-added service (VAS)
providers such as OnMobile and Hungama, after being slammed by TRAI.

 

The telecom regulator had raised objections on mismanaging
VAS services by mobile operators. 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, according
to a report of Hindu Business Line.

 

According to TRAI regulation, it is mandatory for the
operators to get subscribers’ consent in writing or via SMS within 24 hours of
activation of the value-added service.

 

The regulator issued the regulation 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. The mobile companies have agreed to implement
this across all circles by May,” said an industry source.

 

Acting on the regulator’s slam on the issue of mismanaging
VAS services, 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.

 

Though, the regulator has not yet withdrawn its earlier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

 

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