Ofcom reviews controls on premium rate calls

Telecoms regulator Ofcom has published its findings aimed at improving consumer protection following a review of the regulation of premium rate telephone services in the UK.

The premium rate services regulator, ICSTIS, is responsible for creating a Code of Practice, which all premium rate service providers must follow, and for enforcing compliance with that Code. Ofcom, which has statutory 'back-stop' powers is responsible for approving the relevant Code of Practice, undertook the review as a result of a request from the Department of Trade and Industry.

The recommendations from Ofcom include:

• Customer refunds - network providers should hold on to revenues for companies offering premium rate services for at least 30 days allowing ICSTIS time to assess complaints and any potentially fraudulent activity.
• ICSTIS investigations - the ICSTIS Code should require network providers to obtain detailed information on premium rate service companies and their call revenues where a complaint has been received.
• Fines - the DTI should increase the maximum fine for a breach of the Code of Practice (currently £100,000) and fines should be imposed on network providers if they fail to meet their obligations.
• Customer service and consumer information - the Code should require companies offering premium rate services to have effective customer service and refund policies. Telecoms providers should be required to make practical information available to customers regarding call barring facilities.

The review followed discussions between the DTI, Ofcom and ICSTIS relating to growing concerns about fraudulent and misleading use of premium rate services - typically 09 numbers.

This includes some ‘rogue’ internet diallers which re-route dial up internet connections onto premium rate numbers.

Costing up to £1.50 per minute from the BT network, in 2003 the UK premium rate calls sector generated revenues estimated at £850 million.

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