Culture, Media and Sport CommitteeWritten evidence submitted by Pinesoft Ltd [NTC 028]
Summary
1. Unsolicited marketing by SMS—or “spam” texts as they have become known—represent a significant problem for consumers, mobile network operators and legitimate marketeers. Recent research has suggested that 8.7 million such texts are received by mobile users in the UK every day.
2. Currently, the principal public means of dealing with “spam” texts is time-consuming and involves an online complaint form with details of each such message received. That information is then processed by the Information Commissioner’s Office (ICO).
3. The sheer volume of “spam” sent to individuals’ mobile telephones makes the compilation of repeat reports impractical and potentially inconvenient. However, the growing tide of unwanted messages arguably has possible reputational and commercial impact for the mobile network operators and the marketing industry if it remains unchecked.
4. As a result, the mobile network operators and consumer groups representing mobile users acknowledge the need for a simple and effective solution; ideally, one which is technological rather than regulatory in approach.
A Technological Approach
5. Pinesoft is a London-based software engineering consultancy that commenced trading in 1994 and has extensive experience working with major domestic and international operators in the post, parcel and financial management industries.
6. Pinesoft has created and patented the Mobile Preference Service (MPS). It enables mobile “phone users” to set preferences against SMS messages they receive. These preferences then filter text messages, allowing marketing texts from brands which they specifically agree to while blocking those they do not. MPS is free for consumers.
7. MPS functions in a manner similar to how the Telephone Preference Service (TPS) works with voice calls on fixed “landlines”. However, whilst the TPS simply allows or blocks all marketing calls, the MPS allows messages on specific subjects or from specified sources to be blocked or permitted, thereby expressing individual consumers’ preferences more fully.
8. Pinesoft has been made aware that each of the major networks undertakes its own initiatives in an attempt to limit the amount of “spam” making it to subscribers’ handsets. They have so far not been able to put a common system in place, apparently for reasons of commercial confidentiality.
9. We contend that the greatest potential benefit would come from a method which is universal and has the active participation of all the mobile network operators connected to a single system, so allowing them all to block “spam”. The MPS is designed to function in just such a fashion.
10. Pinesoft has held separate briefing sessions about MPS both with Ofcom and several major mobile networks. All agreed as to its ability to make progress in combatting the problem of “spam”, even if they could not concur as to who should pay for the cost of its ongoing operation. Whilst the regulator believed the networks should bear the expense, the networks felt that those marketing companies which stood to gain legitimacy and approval from MPS should instead pay for its upkeep.
11. We believe that, as the fundamental development work has already been completed, the costs needed to bring about its intended application would be for connecting the networks and marketing companies into the system. Each would cost in the low tens of thousands of pounds, with the precise sums depending on the exact level of work entailed. In addition, the annual support costs would amount to the low six figures.
12. As the regulators and authorities have already identified, the methods used by those behind “spam” text marketing are evolving rapidly. We believe that given their changing tactics and technologies, it will be difficult to completely eradicate the threat and nuisance which they pose to consumers and networks.
13. Pinesoft is confident that the MPS is an advanced non-network-specific system and stands the best prospects of helping parliament, the regulators, mobile network operators and consumers combat “spam” marketing texts.
August 2013