The opinions expressed in this editorial are those of the author and do not necessarily reflect those of Decima Reports. The dispute over a proposed tariff on ringtones is heating up as debate moves to proposed rates for 2005. But now with the recording industry association’s decision to enter the fray, things could become a lot more interesting. Last week, Report on Wireless learned that the Canadian Recording Industry Association (CRIA) had joined the Canadian mobile wireless companies to fight a proposed tariff on ringtones, dubbed Tariff 24, saying proposed rates for 2005 are excessive and unreasonable.   The Society of Composers, Authors and Music Publishers of Canada (SOCAN) has proposed rates for 2005 that appear to be a substantial jump from what it was proposing in the previous two years. SOCAN wants to collect 10% of ringtone suppliers’ revenue, with a minimum of 20 cents per ringtone downloaded.  CRIA’s entry comes something of a surprise since the group wasn’t party to the proposed tariff for the years 2003 and 2004, but its participation makes sense. With rates amounting to what could be 10% of any ringtone, it seems logical that the Canadian record labels would want to get involved.  Carriers don’t want to have to pay any more than they have to for the communication right associated with ringtones because it hurts their bottom line. And if they do, in fact, have to pay more as a result of the Tariff 24 proceeding, it would likely mean that ringtones will get more expensive for consumers.  The Canadian record labels certainly don’t want ringtones to become too expensive, which would ultimately translate into fewer ringtone downloads, meaning less money for them.  There can be little doubt that ringtones have been one of the few successful wireless data services, and surely no stakeholder wants to have to implement a pricing strategy that makes consuming ringtones too onerous on the consumer.  But this is exactly what SOCAN appears to be proposing. Irrespective of whether there is actually a communication right associated with the supply of a ringtone, 10% of a ringtone supplier’s revenue with a minimum of 20 cents per download will likely have a substantial negative impact on a service showing signs of success.