Premium Rate Numbers regulation

Ofcom is publishing today a new framework agreed by Ofcom and PhonepayPlus which will strengthen consumer protection and clarify the existing regulatory arrangements for premium rate telephone services (PRS).

Under the Communications Act 2003, Ofcom has responsibility for the regulation of PRS. In this framework PhonepayPlus (formerly ICSTIS) will act as the agency which carries out the day-to-day regulation of the PRS market on Ofcom’s behalf.

Today’s announcement follows a review of PRS regulation carried out by Ofcom in light of growing convergence and increasing areas of overlap between PRS and other areas of communications policy, for example the use of PRS within television programming.

The new arrangements include:

Closer arrangements for agreeing objectives and strategies, and clearer reporting of policy issues and market trends;

A senior Ofcom official to become the sponsor for the relationship with PhonepayPlus;

Ofcom to have the ability to give PhonepayPlus direction on issues which it considers of particular importance or where clarity of responsibility needs to be explicit; and

All appointments and re-appointments on the PhonepayPlus Board and the Chief Executive to be subject to Ofcom approval.

These new arrangements are effective immediately. Further details are published here.

Ofcom is also publishing today a consultation on amendments to the PhonepayPlus Code of Practice. Ofcom is required, under the Communications Act 2003, to approve any amendments to the Code of Practice. These amendments, which have been consulted on previously by PhonepayPlus, allow for a revised governance structure within PhonepayPlus, including a smaller strategic Board and a separate Code Compliance Panel.

Separately, Ofcom is scheduled to publish its wide-ranging review of the scope of PRS regulation in early 2008.

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