Mobile content services- PTS-ER-2005:8 - February 2005

22/02/2005

Good preconditions for the growth of mobile content services prevail in Sweden. We have a high penetration of mobile telephony and a high proportion of contract subscriptions, record sales of mobile telephones, a high level of Internet use and a good awareness of the existence of mobile content services. Moreover, we have the best 3G coverage in the world.

But nevertheless the market has not taken off. Several people interviewed emphasised that the market for mobile content services is a slow grower.

Surveys show that for several years users have demanded benefit services, while it is primarily entertainment services that are currently available in the market. The ‘PTS survey of individuals’ also shows that a large proportion (over 40% of the age group 51 to 75 years) are aware of mobile content services, but do not use them. If one also takes into consideration the results of PTS’s survey of the information needs of the consumer, which shows that about two-thirds of consumers believe that mobile telephony is expensive and do not understand what they should do with all the features, one realises that it is a matter for the market stakeholders to be able to demonstrate the benefit of the services in order for the market to develop positively.

There is inadequate knowledge on the part of the users themselves about how the services should be used. This, to a large extent, fraud experienced results from problems in how to manage use and unfamiliarity with the services on the part of users. The operators must assume responsibility for the fact that the services are thought to be complicated and unclear. Operators, in cooperation with their distributors, should possibly consider providing more training in shops at the point of sale.

The authorities can provide information by means of price comparisons and good advice about what a consumer of mobile content services should take into consideration.

In order to enhance the opportunities of the consumer to control both his/her costs and use, PTS has proposed amendments to the Electronic Communications Act. These amendments mean that mobile operators should also be covered by both the obligation to provide itemised telephone bills as well as blocks for calls and credit.

There is a need for increased cooperation between the stakeholders. PTS published Stelacon’s report in December and issued an invitation to a well-attended meeting regarding mobile content services in January. A forum for cooperation is required where the market stakeholders can meet up together and produce joint action plans, guidelines, etc. and where the authorities may be included as a partner for discussion.