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Extending Premium Rate Services Regulation to 087 Numbers

Summary

NTS calls combine the call routing features of non-geographic numbers with a payment mechanism

1.1 Number Translation Services (‘NTS’) calls are calls to 08 numbers (‘NTS numbers’), though as explained later in the document, there are a few exceptions.

1.2 NTS numbers are examples of non-geographic numbers in that the number dialled does not relate to a specific geographic location, but instead relates to a particular service. At a technical level, the NTS number dialled by a caller is ‘translated’ by the network to a geographic number to deliver the call to its destination. Often, the translation is provided in conjunction with other call routing services that help businesses answer calls more efficiently. These include distribution of calls between multiple sites, routing calls according to the caller’s location, recorded announcements and emergency call routing to an alternative location in event of a fire or flood etc.

1.3 Another important aspect of NTS calls is that they are generally charged at higher rates than ordinary calls and (with the exception of Freephone calls) the service provider who uses the number may receive a share of the call charge to help pay for the service supplied. Alternatively a share of the call charge may be used to pay for the call routing services mentioned above.

In April 2006 we decided to implement a package of measures to address consumer and industry concerns about Number Translation Services

1.12 In April 2006, Ofcom concluded a major review of our policy about NTS and announced a package of measures designed to improve consumer protection, pricing transparency and to address some industry problems that led to persistent disputes that Ofcom was called upon to resolve.

1.13 We decided to implement some of the changes immediately and others over the following two years in order to give Communications Providers (‘CPs’) that supply NTS and businesses that use them time to prepare.

We proposed to extend Premium Rate Services regulation to 087 Numbers

1.14 To improve consumer protection and pricing transparency for calls to the most expensive 08 numbers we proposed to extend PRS regulation to all the 08 ranges that are charged above 5p per minute for BT customers, except to the 0870 range. The relevant numbering ranges are the 0871 range which has been in use for some years and the 0872 and 0873 ranges which have recently been introduced to provide numbering capacity to meet future demand. We have excluded 0870 because other changes that we have proposed will reduce the need for the additional consumer protection measures provided by PRS regulation^(-1-) (see paragraph 2.48 for details). For ease, we use the term ‘087 Numbers’ to refer to 087 number ranges excluding the 0870 range (i.e. the 0871, 0872 and 0873 number ranges) in this consultation.

1.15 We proposed to make the 087 Numbers subject to PRS regulation, thereby bringing them within the remit of PhonepayPlus. We therefore asked PhonepayPlus to develop a set of regulations suggesting that they take the form of a new Code of Practice which would apply to 087 Numbers.

This is a more detailed consultation on our proposal to extend Premium Rate Services regulation

1.23 In this document we are taking the next steps to progress our proposal to extend PRS regulation to 087 Numbers. In order to do this we have:

reviewed our proposals and updated the earlier impact assessment in the light of the rules that PhonepayPlus has decided to apply to 087 Numbers (i.e. the Code and the guidance in the SOA) and any other relevant information that has become available since the April 2006 NTS Statement; and
proposed changes to the Premium Rate Services Condition^(-2-) (‘the PRS Condition’) to extend our PRS powers to encompass the 087 Number ranges. These powers allow us to take enforcement action in the event that a stakeholder does not comply with a PhonepayPlus ruling.

1.24 This document contains the draft legal notifications for the change to the PRS Condition, our initial assessment of the relevant legal tests and our regulatory impact assessment for this change (as required by section 7 of the Act).

Next steps

1.37 We are asking for stakeholders’ comments about our proposals. In particular we are seeking stakeholders’ comments about:

our proposal to extend PRS regulation to 087 numbers;
the suitability of the PhonepayPlus SoA for 087 Numbers;
the proposed modification to the PRS Condition;
the Impact Assessment for these proposals; and
the secondary impacts on 09 numbers associated with these proposals.

1.38 The closing date for responses is 16 June 2008. Guidance on how to respond is set out at Annex 1. Following receipt and consideration of responses we will publish a policy statement setting out our decision. We hope to publish our Policy Statement in August 2008.

1.39 Assuming we do not make any significant changes as a result of the responses to the consultation, we envisage adopting a policy statement which would contain the final notifications implementing the modification to the PRS Condition (‘the Policy Statement’).

1.40 We are proposing to give stakeholders three months’ notice to allow them to make final preparations for the extension of PRS regulation to 087 numbers. So, subject to the outcome of the consultation, our intention is that the modification to the PRS Condition would take effect three months after publication of the final notification in the Policy Statement. On this basis, PhonepayPlus would be expected to commence regulating the 087 Number services from November 2008.

Footnotes:

1.- Ofcom has published a separate consultation setting out proposals for 0870 numbers: http://www.ofcom.org.uk/consult/condocs/0870calls/

2.- http://www.ofcom.org.uk/telecoms/ioi/nwbnd/prsindex/PRSCondition_2 .pdf

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