Home > Consultations > Consultation Documents > Regulation of VoIP Services > Regulation of VoIP Services

Executive Summary

Introduction

1.1 Ofcom is the independent regulator of television, radio, telecommunications and wireless communications services in the UK. This Statement sets out our approach to regulating access to the emergency services from Voice over Internet Protocol services (VoIP services). It follows the July 2007 Consultation Regulation of VoIP Services: Access to the Emergency Services.

1.2 In that Consultation, Ofcom identified a high level of consumer and citizen confusion about access to the emergency services from VoIP services. That confusion means there is a risk of someone trying to make an emergency call from a service that does not provide access. Although most users can reach for another phone to make emergency calls, a delay of seconds can result in increased harm. Given this risk, and the recent rapid growth in the use of VoIP services, we consider it’s time to act.

1.3 Ofcom has therefore decided to require certain categories of VoIP service to provide access to the emergency services, broadly in accordance with the proposals set out in the Consultation. Our decision aims to avoid the risk of delays in contacting the emergency services by regulating VoIP services that consumers and citizens may try to use to call the emergency services.

1.4 The new requirement will enter into force on 8 September 2008.

1.5 This Statement sets out a summary of significant responses to the Consultation, Ofcom’s view of those responses, and Ofcom’s regulatory decision.

1.6 This Statement is primarily aimed at providers of VoIP services that allow users to call normal fixed or mobile phone numbers; consumers of VoIP services and other citizens; the emergency services and Government departments concerned with public safety, crime prevention and detection.

1.7 This Statement is also relevant to access to the emergency services over Next Generation Access (NGA) networks because they are likely to replace PSTN voice call services with VoIP. Ofcom published a consultation on Future broadband - Policy approach to next generation access on 26 October 2007 and proposed to carry out a specific consultation on NGA in new build developments around the end of 2007^(-1-).

VoIP voice call services

1.8 Traditional phone services have existed for over 100 years. Voice services using VoIP are changing the way voice services are delivered. These services normally use VoIP technology to provide voice calls using fixed or wireless broadband connected to PC with a handset or headset, a Personal Digital Assistant (PDA, a handheld computer), a mobile phone handset or a fixed phone handset with an analogue telephone adapter (ATA) or router. VoIP services can benefit customers by reducing the cost of existing services, providing new services and increasing competition in telephony and broadband. Ofcom aims to ensure that, as voice call services evolve, consumers and citizens are protected.

Calling the emergency services

1.9 One of the most important features of traditional phone services is that they enable users to call the emergency services. The UK’s 999 emergency call service from fixed phones, the first of its kind in the world, was launched in 1937 and extended to all major towns and cities by 1948. The 999 service was introduced for mobile phone users in 1986. In 1991, the European Union established a single emergency call number, 112, which can be used anywhere in the European Union to call the emergency services (so in the UK the emergency services can be reached on 999 and 112)^(-2-). BT currently handles around 30 million emergency calls a year from fixed and mobile phones.

The regulatory and policy background

1.10 General Condition 4 requires PATS^(-3-) providers to ensure that any end-user can access the emergency services by calling 999 and 112 at no charge and, to the extent technically feasible, make caller location information available to the emergency organisations handling those calls.

1.11 All fixed and mobile PSTN services allow users to access the emergency services. Some VoIP services allow users to do so but others do not. VoIP has introduced one-way services that allow users to make calls to traditional fixed or mobile phones but not to receive calls (called type 2 VoIP services); they aren’t caught by the definition of PATS or General Condition 4. Regarding VoIP services that allow users to make calls to and receive calls from traditional fixed or mobile phones (called type 4 services), the Universal Service Directive 2002/22/EC provided a definition of PATS that included “access to the emergency services”, creating circularity; PATS services must allow access to the emergency services, but allowing access to the emergency services is part of the PATS definition.

1.12 Ofcom is concerned that consumers and citizens are confused about whether they can call 999 / 112 from VoIP services. That could cause delays in contacting the emergency services, which could result in increased harm.

1.13 Ofcom has run three consultations on regulating VoIP services: New Voice Services: a Consultation and Interim Guidance, 6 October 2004^(-4-) (the 2004 Consultation); Regulation of VoIP Services, 22 February 2006^(-5-) (the 2006 Consultation), followed by a Statement on the Regulation of VoIP Services, 29 March 2007^(-6-) (the March 2007 Statement); and Regulation of VoIP Services: Access to Emergency Services, 26 July 2007 (the July 2007 Consultation)^(-7-), followed by this Statement.

1.14 Regarding the ability to call 999 / 112 from VoIP services, in the 2004 Consultation Ofcom set out the policy aim of ensuring consumers are properly informed and protected about 999 / 112 access. In the 2006 Consultation, Ofcom added the objective of ensuring the maximum availability of high quality 999 / 112 access as voice call services and technology change.

1.15 To meet those aims, Ofcom mandated compliance with a Code of Practice^(-8-) drafted by an industry-Ofcom working group requiring VoIP providers to give their domestic and small business customers information about differences between VoIP services and traditional fixed and mobile phone services. VoIP providers also had to provide labels on-screen or for equipment and an automated message indicating if users could not call 999 / 112.

1.16 Additionally, Ofcom provided Guidelines^(-9-) to help VoIP providers to comply with requirements about the reliability of calls to 999 / 112 and providing caller location information for use by the emergency services.

1.17 Finally, Ofcom clarified a requirement^(-10-) that defines the types of voice call provider that are entitled to number portability, which enables consumers to keep their phone number when they change provider. We noted the clarification might act as an incentive for providers to offer 999 / 112 access, in order to secure the benefits of number portability, but might not lead to all providers offering 999 / 112 access.

The policy challenge

1.18 In its March 2007 Statement, Ofcom decided to review its approach to ensuring maximum availability of 999 / 112 access. That was because:

• since the 2006 consultation, there had been a rapid increase in the use of VoIP services: an estimated 10% of UK households used VoIP in the last quarter of 2006, compared to 5% in the last quarter of 2005^(-11-);
• significant developments in VoIP services and technology meant they were more likely to “look and feel” like traditional fixed and mobile phone services and to replace those services for the mass market in the future;
• there was under provision of VoIP services that allowed 999 / 112 calls: in a survey of VoIP users conducted for Ofcom in October 2006 (the October 2006 research) 64% were with a provider that did not offer 999 or 112 access^(-12-);
• a significant proportion of VoIP users were confused about whether they could call the emergency services from their service or not: in October 2006 research, 78% of UK households surveyed were not with a VoIP service that provided emergency services access but thought that they could access it or didn’t know;
• responses to the 2006 Consultation from the emergency services, Government, the Royal National Institute of Blind People (RNIB) and the Royal National Institute for Deaf People (RNID) expressed similar concerns to Ofcom.

1.19 Therefore, Ofcom undertook to consult further in summer 2007 on 999 / 112 access over VoIP and in particular on whether, and if so how, certain VoIP services should be required to offer 999 / 112 access. The July 2007 Consultation met that commitment. In assessing the need to require 999 / 112 access, Ofcom said it would carefully consider the possible impact on competition and on market entry and innovation by VoIP providers.

The July 2007 Consultation: policy objectives and options

1.20 The key policy objective of the July 2007 Consultation was to ensure a high level of access to the 999 / 112 emergency call service. We considered two policy options:

• Option 1: do not require VoIP services to allow 999 / 112 calls; and
• Option 2: require all VoIP services that allow users to make calls to traditional fixed or mobile phones (type 2 VoIP services), or to make calls to and receive calls from traditional fixed or mobile phones (type 4 services), to allow users to call 999 / 112. Ofcom considered the users of those services were likely to expect to be able to call 999 / 112.

1.21 To implement Option 2, Ofcom proposed extending the scope of General Condition 4 from PATS to all PECS^(-13-) that allow users to make calls to traditional fixed and mobile phones using national and international numbers. That would cover type 2 and type 4 VoIP services.

1.22 In the Consultation, Ofcom recommended implementing Option 2. In addition to the reasons set out in the March 2007 Statement, research suggested that customer information was unlikely to be enough to tackle under provision or consumer and citizen confusion; Ofcom’s Impact Assessment of the potential costs and benefits of Option 2 estimated there would be significant benefits for consumers and citizens, which would exceed the costs of compliance for the VoIP providers concerned and competition and innovation would not be significantly affected.

This Statement

1.23 In this Statement, Ofcom summarises significant responses to the July 2007 Consultation, provides its views on those responses and sets out its decision to adopt policy Option 2.

1.24 We have refined the drafting of the modification to General Condition 4 implementing Option 2 since the July 2007 Consultation to more accurately reflect the policy intention behind the requirement.

1.25 Firstly, we have excluded “Click to Call” services. They are a form of VoIP service that may be selected on a web-site or other application by a user and connect the user only to a number or a limited set of numbers pre-selected by the provider or a user.

1.26 Secondly, the requirement now relates to services that allow calls to national numbers (and not national and international numbers). That means it covers services that allow calls to national or to national and international numbers, to ensure that services that allow calls to national numbers only are caught by the requirement and to exclude services that allow calls to international numbers only.

1.27 We have excluded “Click to Call” and international-only services because we consider consumers and citizens are not at material risk of confusion about whether they provide 999 / 112 access.

1.28 The modification to General Condition 4 will enter into force on 8 September 2008, meaning that there is a 9-month period in which to comply.

Complying with the requirement to provide 999 / 112 access

1.29 Under the modification to GC 4, all type 2 and type 4 VoIP services, except “Click to Call” services, that allow users to make calls to national numbers, must provide 999 / 112 access at no charge^(-14-).

1.30 By 8 September 2008, affected providers that do not currently provide 999 / 112 access must do so and meet requirements on providing caller location information to the emergency organisations handling the calls.

1.31 Providers should take into account the Guidelines explaining how VoIP providers should provide caller location information and how they should take steps to maintain a reliable service. This Statement provides further information on following the Guidelines in Section 5.

1.32 Additionally, providers should comply with the Code of Practice on how VoIP providers should inform domestic and small business customers about their 999 / 112 service and any limitations. We will update the Code of Practice to coincide with the deadline for providing 999 / 112 access.

1.33 Type 4 providers are likely to meet the definition of PATS as a result of providing 999 / 112 access. They must also comply with other obligations on network integrity; emergency planning; operator access and directories; publishing prices, tariffs and terms and conditions; billing accuracy; itemised billing; non-payment of bills; special measures for end-users with disabilities.

1.34 Ofcom will enforce and review its policy to ensure VoIP providers are compliant and to see if its regulations need to be adapted.

Structure of this Statement

1.35 In this Statement, a summary of the significant responses to the July 2007 Consultation and Ofcom’s views on those are included within the relevant sections.

1.36 Section 3 provides an overview of VoIP services and the growth of VoIP service provision and take-up. It also sets out the regulatory framework and policy background to this Statement. Section 4 summarises Ofcom’s policy objectives, sets out the two policy options for meeting those objectives considered in the July 2007 Consultation and explains Ofcom’s reasoning for refining and adopting one of those Options. Section 5 considers some of the practicalities for VoIP providers when complying with the new policy, including information on following the Guidelines and the Code of Practice. Section 6 provides a summary of Ofcom’s Impact Assessment, which estimated the costs and benefits of Ofcom’s policy proposals. Section 7 and Annex 1 describe the modification that Ofcom has made to its requirements in order to implement policy Option 2. Section 8 describes the next steps after this Statement, including the deadline for compliance and Ofcom’s planned approach to monitoring, review and enforcement. There is a Glossary in Annex 3.

Footnotes:

1.- See http://www.ofcom.org.uk/consult/condocs/nga/

2.- Council Decision of 29 July 1991 (91/396/EEC) and Directive 2002/22/EC (Universal Services Directive) of 7 March 2002. EU member states are required to ensure all end-users of publicly available telephony services (PATS, see footnote 11) and public pay phones are able to call the emergency services free of charge using 112, in addition to any national emergency call numbers.

3.- In summary, PATS are defined as (i) a service available to the public (i.e. a PECS) (ii) for making and receiving national and international calls and (iii) accessing emergency services (iv) through a national or international phone number on a numbering plan. Those four points are known as the “gating criteria” for the PATS definition. For the full definition, see Article 2(c) of the Universal Services Directive (2002/20/EC) and Ofcom General Conditions (Schedule to the Notification under Section 48(1) of the Communications Act 2003) Part 1 para.1 and GC 18.

4.- http://www.ofcom.org.uk/consult/condocs/new_voice/anew_voice/

5.- http://www.ofcom.org.uk/consult/condocs/voipregulation/

6.- Statement on the Regulation of VoIP Services, Ofcom, 29 March 2007 http://www.ofcom.org.uk/consult/condocs/voipregulation/voipstatement/voipstatement.pdf

7.- http://www.ofcom.org.uk/consult/condocs/voip/voip.pdf

8.- Code on the provision by Service Providers of consumer information to Domestic and Small Business Customers for the provision of Services, which entered into force on 29 May 2007.

9.- Guidelines on the application of PATS obligations to VoIP service providers, which entered into force on 29 March 2007.

10.- General Condition 18.

11.- Source: Ofcom communications tracking survey Q.4 2006.

12.- More information about the results of the quarterly Ofcom communications tracking survey for Q.4 2006 and the October 2006 research are available in the Ofcom Research Report: Voice over Internet Protocol (VoIP), www.ofcom.org.uk.

13.- Public Electronic Communications Service: a service that uses a network and any associated apparatus, software or stored data to transmit signals, excluding content services, and that is available to the public. Section 32 Communications Act 2003 and Art. 2 Framework Directive 2002/21/EC.

14.- See Annex 1 for the full modification to GC 4.

The full document is available below

• Regulation of VoIP Services: Access to the Emergency Services [pdf]
  Full Print Version

Back to top