MEF Launches Global Code of Best Practice for Mobile Subscription Services.

NEW ORLEANS -- MEF today announces that it has launched a code of best practice for mobile subscription services, aimed for use by operators and content providers on a global basis. MEF devised a code of practice for the UK, which went live in January 2005. The result of this initiative is that mobile operators have shut out several suppliers with unacceptable practices and consumer concern over subscription services has dramatically declined. The UK mobile premium services market was worth around $800m in 2004.

This new code of practice is recommended to MEF's 70 members world-wide, who represent many of the world's major carriers, content providers, service providers and technology vendors. The MEF and its US chapter, MEF Americas, have consulted on this project to ensure that the global code of practice takes account of the lessons learned from the UK experience and that the code is applicable to the booming mobile subscription services market in the USA. The code will be further evolved by MEF on the basis of future experiences and local market conditions in the US and other territories.

Subscription services offer very good value to consumers that want to swap ringtones or receive other content on a regular basis and can do so at attractive prices. For the carrier and service provider, subscription services are also excellent news; they provide ongoing revenue streams and slash the customer acquisition cost / revenue ratio. As a result, they have been extremely successful and have captured a large proportion of the mobile premium services market. However, subscription services may be open to abuse, as Andrew Bud, head of the MEF Regulatory Initiative, explains: "In the UK there was great uncertainty about what was best practice and what was unacceptable in the promotion and delivery of subscription services, which disturbed some consumers. We also had a few rogue providers using the offer of free ringtones to trick people into signing up to subscription services and making it difficult or impossible for consumers to escape from the service and its cost."

"Our first priority is our subscribers' continued trust and confidence," said Jeremy Flynn, Head of 3rd Party Content for Vodafone UK, who led the operators' initiative. "We are confident that the new rules will fully protect them, whilst encouraging further growth in the mobile content industry. The UK mobile operators are all fully committed to these rules, and we appreciated the support of the Mobile Entertainment Forum in getting this work done well and fast."

"The UK industry launched its code of conduct during January this year; just two months later the rogues are gone and consumers and operators are much happier. We are certain that the results of our global consultation and practical market experience will make this code an asset to operators and content providers throughout the world by helping them build consumer confidence," concludes Bud.

About the MEF Subscription Services Code of Conduct

The MEF Subscription Services Code of Conduct deals with best practice in five areas:

-advertising and promotion

-sign-up disclosures

-monthly billing procedures

-regular un-subscription reminders

-freedoms and methods to opt out

The code defines a number of clear, simple and workable rules, which were devised by MEF members from many countries and tested initially in the UK market.

About the Mobile Entertainment Forum

The MEF is a global trade association representing all participants in the mobile entertainment value chain interested in driving the industry's evolution and commercial potential through collaboration, consultation and promotional activities. The MEF is committed to reducing the barriers to entry into the innovative mobile entertainment market, thereby encouraging entry by new businesses and increasing competition and growth to the benefit of all industry players and consumers. The MEF's main goals are to promote the development of the mobile entertainment industry; build awareness for the industry and facilitate the development of commercial standards and best practices for mobile entertainment. For more information, please visit: www.m-e-f.org 

For enquiries in North America, please contact: Agnes Gomes-Koizumi, MEF Americas Consultant, [e-mail]

For all other enquiries, please contact: Rimma Perelmuter, General Secretary, MEF, [e-mail]

If you have any press-related questions or need more information, please contact: David Bramley, Platform, [e-mail], [phone].