Avoiding the Truth

Dave Oberholzer VP at Limbo has a piece over at RCR on the issue of premium services for cellular. We agree with his observations as to the state of the entire premium service - SMS marketplace. The system as it is structured is rife with what amounts to legalized fraud, inappropriate billing and manipulation. The Fla AG is already going after one provider now.

But we think that Mr. Oberholzer misses a clear opportunity for a solution. His recommendations are better policy and policing by the industry and the carriers specifically. Our position is one of empowerment to the consumer to resolve these issues by the one tool they have — leave the provider with their dollars intact. But that requires some fundamental changes –

• Eliminate the third party billing thru the carriers. In the beginning it was a convenience for both the end consumer and the industry as a whole. Now that is not the case. For what small % the carriers are getting for billing is being eaten up in CSR charges in consumers doing charge backs. Not only that but the carriers are getting tired of their brand being besmirched by third parties. Yes most consumers consider the third party providers as part of the phone company since its the Verizons and Sprints who are billing them. So why shouldn’t they think that way?
• If the carriers are out of the picture how do premium service providers get paid? Ideally via cash. Or more appropriately electronic debit. The world needs a form of electronic cash micropayments that is controlled by the consumer as readily as keeping cash in their pocket as they wish. The key is the consumer would offer a recurring unique cash token to the provider for payment. As readily, the consumer can turn that debit stream off. The electronic wallet would have a cash limit of $200-300 to minimize financial risk. It would be reloadable.
• With a debit stream that is in the control of the consumer the need for regulation and policing of the premium content providers is pretty much moot. The consumer if they don’t like the service or feel they were misled can walk with their dollars using a mouse click.
• Providers who are unscrupulous will dwindle, good providers will be rewarded and the carriers are out of the whole mess.

Mr. Oberholzer the core issue is one of control not policing. The consumer needs to be given the tools to manage their electronic life as readily as cash.