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At work is a teenager's penchant for reckless spending, helped along by advertising from ring tone providers, which some critics label as unclear, others as deceptive.
Some of the friction began six months ago, when at least one ring tone vendor, Jamster, began selling ring tones in bulk, in exchange for a weekly or monthly fee, in addition to offering a single tone at a time. Some consumers didn't notice the changes, and thought they were buying a single tone when they were really buying a week's or month's worth. Jamster, however, says its pricing is clear.
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Still, a crackdown of sorts has begun. A handful of North American and European operators are now at work on a code of conduct for ring tone sellers, due for release in 30 days, according to Paul Palmieri, executive director of business development and programming for Verizon Wireless.
Some operators aren't waiting. Cingular Wireless, the top U.S. operator, increased on Monday the number of approvals ring tone sellers must get from customers before finalizing any sale.
"Operators have been caught off guard by activities of several companies selling ring tones," said Verizon's Palmieri. "We're now trying to arrive at a code around price transparency and clear disclosure around things like subscriptions."
The issue is the subject of a lawsuit filed by California parents earlier this year against Cingular Wireless, T-Mobile USA and Jamster, which is a subsidiary of security specialist VeriSign. The suit alleges the defendants did not clearly state that people were signing up for Jamster's $6-a-month service.
By contrast, a single ring tone costs $1.99, according to Jamster's Web site.
Jamster, marketed in Europe under the brand name Jamba, plays to a teenage audience and advertises on MTV, Nickelodeon and Web sites popular with teens.
A Jamster representative called the suit "frivolous" and rigorously defended the company's advertising and sales tactics.
"We believe we clearly state that you are entering into a monthly plan, and many of the alleged facts in the lawsuit are erroneous," said Jamster spokesman Brian O'Shaughnessy.
A Cingular representative had no comment on the suit. T-Mobile also had no comment.
The overall impact of consumer confusion is unclear. Palmieri, Cingular spokesman Clay Owen, and Albert Lin, an analyst for American Technology Research who earlier this week released a report on ring tones and pricing, couldn't quantify the number of people that purchased a monthly ring tone subscription believing they were buying just a single tone. Lin called it a "significant" amount.
Owen said Cingular has taken dozens of complaints about huge ring tone bills. Many are from parents noticing the charges on their child's cell phone bills, which they pay for, Owen said. The bills sometimes suggest teens are overzealously spending on tones, as some young people do on phone calls and short text messages. Some parents contacted by CNET News.com on Monday say that typically their child's cell phone bills feature mysterious charges of up to $10 a month for ring tones.
Lin notes that the problem has been severe enough for carriers to take action, mostly because it's reflecting negatively on them, deservedly or not.
"Carriers don't want unhappy customers feeling they were slammed into buying something they didn't want," Lin wrote in his report. "The scrutiny that is being applied to sales practices which may create such episodes is intensifying."
The hullabaloo spotlights flaws in the important partnership between carriers and independent cell phone software vendors, which the carriers are counting on for the next killer application and margin-boosting business model. When things go awry, consumers can be adversely affected and operators taken by surprise.
Independent ring tone vendors do most of the work of creating the tones: They sign the artists, produce the tones and distribute them directly to customers. The ring tone vendors also keep a large share of the revenues, with wireless operators keeping a small piece for giving the companies access to their subscribers and for handling the billing.
Now, according to Lin, there are growing signs of an operator crackdown, not just in regard to ring tones but also in regard to the games, wallpaper and other add-ons operators sell.
"While we see a healthy growth industry remaining after this examination, we believe that segment of the industry will experience a slowdown which may feel like a train wreck compared with the recent months of hypergrowth," Lin wrote in his report.
See more CNET content tagged:
operator,
teen,
Cingular Wireless,
seller,
tone




Thankfully it's not true, thanks to cables that can be had for under $10 on eBay and software that is frequently free you can create and upload unlimited ringtones to your phone without paying your carrier a penny.
All of my ringtones (and I have more than a few for different callers) are simply trimmed and low bitrate clips of MP3s ripped from my CD collection. Nor do I pay to get camera phone images out of the phone.
I'm not going to name products specifically because I don't want to seem like a shill, but if you search around you can find the solution to overpriced ringtones.
I don't really see what the big deal is about the ring tones. I use the standard rings that come with the phone.
It's the 900-number boom of the early 90s all over again.
I just noticed Ivan Yagolnikov posted a comment about setting phones to vibrate, and used "Easy Solution" as his subject title. I agree our phones should be on vibrate, as I use mine, but that doesn't mean other people don't have reasons to use ring tones, and this wouldn't be an easy solution for parents at all that I can see.
While trying to conclude my statment I have nothing to say other than I completely agree with you. Who didn't see this coming?
The solution for kids (and teens) (and seniors) and anyone else who wants a simple mobile phone without hassle and bills - is PREPAID!
Virgin Mobile USA or T-Mobile To Go if you want lots of minutes cheaply.
TracFone if you need a large roaming coverage area and don't mind paying a bit more.
Verizon INpulse and Cingular if you want unlimited mobile to mobile calls included.
My Son's (age 23) girlfriend thought she would surprise him with a ringtone from a favorite song, only to notice later that it was a weekly charge, and was difficult to get out of, these tricksters should be ashamed at the target audience of these scam artists. I have since made him a few dozen he can upload into his phone for free (from personal music files).
W Lennon
the carriers (I hold Verizon and the others responsible) have allow this service to bilk parents. In one month I had over $40 in charges for ringtones. This included two subscriptions (a premium and a basic) running concurrently. If you were to price a CD based on the ringtone pricing model, that CD would cost you near $60. Bought a $60 CD lately? Verizon and the other should be ashamed of putting the screws to parents.
Teenagers need a cell phone like a fish needs a bicycle. All they do is use them like expensive walkie-talkies. As another post noted, remember the $1,000+ charges that kids were getting for 900 numbers in the 80's and 90's? That is, until parents got fed up and began monitoring their children.
Still, I don't understand what's the big deal about ringtones? People should get some sense and just keep their phones on vibrate! I attend a large university and it bugs me to no end when people forget to turn their phones off and some cheesy tune plays (even during exams). Keeping phone on vibrate or silent (for movies) should be a common courtesy that we too often forgo...
Just messin' with ya. You're point is dead on.
But, the carriers should be shouldering immense blame for not providing parental control capabilities akin to AOL, cable television, and other services. Parents should be able to ask the carrier to BLOCK any purchase of any type that would appear on the phone bill beyond basic service. Parents should also be able to prevent their kids from continuing to use their phone if they go over the allotted minutes per month. And, if the kid abuses text messaging, parents should be able to disable that feature as well. Cell phones are a great tool for parents to keep up with their kids and give them a lifeline if they are ever in trouble or in an emergency. But, that tool should be controllable by those parents.
I've looked at Jamster's ads and I don't see anything that can be misinterpreted the way these people claim it was misinterpreted. They are just trying to shuffle blame to the technology that's the newest (funny how we tend to do that in general :)). The carriers are totally trying to shirk blame away from providing the parental control features they need to and CAN provide. If they can provide freakin' full motion video on a cell phone, they can provide the controls to block functionality like this that is ripe for abuse and their kids don't really need.
carriers start offering online music for their cell phones for
$2.99 per track? I can't wait to see that flop. I'm quite content
with my Sony MP3 player, thank you.
Cell phones are such rip offs anyway. Peoples' justification? "I
need it for emergency purposes." Yeah, right. You need it to call
911 for running into the back of an innocent driver while you
were running your mouth on the cell phone.
Parents are responsible for their kids and they need to lock-down the cell phone usage. No different than kids accessing the Internet or going out with their friends to 4AM ... parents need to do their job as parents.
--GIF
- Read the fine line
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by james.grimes
July 21, 2005 8:26 AM PDT
- Parents, you should be telling your kids that they should be reading the fine print because just because a commercial says something is free, it doesn't mean that it is totally free--beides there is no such thing as a free lunch, you have to qualify for it first, and then apply.
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