Swedish telco fined $100,000 for billing unwanted SMS services

Ericsson Telecommunications has been fined $100,000 for billing a local customer for unwanted premium-rate SMS services.
The Straits Times reported that the customer had complained to the Infocomm Development Authority of Singapore (IDA) after being billed. IDA found that he was using a "recycled" mobile number another user had given up last year.

When a mobile line is cancelled, the number is rendered inactive for a period of three months before the telco can re-issue it to someone else.
Ericsson Telecommunications, the content arm of Swedish telecoms equipment maker Ericsson, then continued to bill the number a monthly charge, which resulted in the new subscriber having to pay for its premium services.
Its hotline was also not working, so the new customer could not cancel the service.
According to the English daily, this has been the highest fine imposed since stiffer penalties were introduced earlier this year to deal with a rising number of complaints against companies that send unsolicited premium-rate text messages, including those which peddle ringtones and games.
Ericsson was fined under the Premium Rate Services code introduced in 2007, making this its second breach in as many years.
It was fined $73,000 in 2009.
The Straits Times also said IDA had issued a statement on its website saying Ericsson's explanation was not acceptable.
"Ericsson explained that the erroneous charging was due to a technical malfunction of its content provider's system," IDA said.
"Ericsson had therefore failed to put in place its own safeguards to ensure that it does not charge anyone for any unsolicited services."
According to the English daily, IDA received 156 complaints last year, up from 86 in 2009. There were 150 complaints in the first six months of this year alone.
IDA increased the penalties for first-time offenders to up to $10,000 and up to $100,000 for the second time.
Third-time offenders may have their licences suspended for at least six months. Further infringements can lead to longer suspensions and licence cancellation.