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Naked ambitions put Telus on the spot

First Canadian carrier to offer adult content going after market that's expected to generate $14.5-billion (U.S.) in revenue between 2006 and 2011

With a file from Associated Press

When Telus Corp. launched its latest business initiative last month, it opted not to advertise the fact that it was Canada's first wireless carrier to do so. Maybe for good reason.

Word soon got out that Telus's wireless division had entered the "adult content" business, and the Vancouver-based company was bombarded with complaints. More than 100 upset customers threatened to take their business elsewhere, but so far Telus has not blinked. It says it's only offering what's now universally available.

"The reality is it's already out there on today's handsets that are equipped with Internet browsers," Telus spokesman Jim Johannsson said.

Cellphones are just the newest outlet for porn. Telus already offers pay-per-view adult content on its TV service, like other providers.

"Mobile is the latest channel for the distribution of adult content and with the increasingly rapid roll out of 3G services, incorporating enhanced mobile video and graphics capabilities, it promises to be one of the most intriguing," an analyst at British-based telecommunications analyst firm Juniper Research wrote in a report last year.

The market for adult content for mobile devices is expected to generate $14.5-billion (U.S.) in revenue between 2006 and 2011, according to Juniper.

Rivals Bell Canada and Rogers Wireless don't currently sell adult content on cellphones, but wouldn't comment on their plans.

The mobile porn industry has undergone rapid growth. It started with text and black-and-white pictures, according to Luc Prieur, chief executive officer of PhoneBox Entertainment, which sells porn pictures and videos on its websites and through carriers. Demand picked up significantly with the launch of colour cellphones in 2002, and video-enabled models a few years later, he said. Revenue at PhoneBox is climbing 40 per cent annually.

Mr. Prieur said Europe is a larger market right now for this content. "It's a surprise move from Telus," he said. "North America is very shy about adult content."

Telus's content, which costs between $3 and $4 (Canadian) for downloads of porn pictures and video, requires age verification and it is legal for downloading in Canada, according to Mr. Johannsson. Users must enter their full name and credit card information to access the content. Parents can turn off the web browser function on children's phones so they can't access the content.

"We can't make adult content go away," Mr. Johannsson said. "What we can do is equip parents with the information they need to make informed choices and the tools to manage the risks."

According to a new study released by University of New Hampshire researchers, 42 per cent of kids aged 10 to 17 using the Web said they had seen online pornography in the past year.

Telus had received 135 complaints as of last Thursday, according to Mr. Johannsson, who couldn't comment on cancellations other than to say he expects it will be a "small fraction" of subscribers.

"What's to stop the guy next to me on the sky train or the bus from viewing whatever he wants, next to my daughter as she rides into town?" said Gordon Keast, 54, a public relations executive from White Rock, B.C.

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