Ref: 14/03
Date: 31 March 2003

Oftel has today given notice of its intention to make a final order against 1^st Rate Telecom for breaching its operating licence.

Following an investigation, Oftel has concluded that 1^st Rate Telecom had allowed chat services to be run on inappropriate number ranges.

1^st Rate Telecom used a series of personal (070) and specific premium rate (091) numbers between October 2002 and February 2003 to provide access to chat services.

Although 1^st Rate Telecom has since withdrawn access to these services, Oftel is now taking action to ensure that a similar breach will not happen again in the future.

1^st Rate Telecom has breached its licence by using these numbers in a way which contravenes the National Numbering Conventions. The Conventions set out the rules governing the use and management of telephone numbers in the UK. All operators who have been allocated numbers by Oftel must follow these rules.

Peter Waller, Deputy Director General at Oftel, said today:

"Oftel's numbering scheme ensures that consumers are aware of the typical cost of a call before they pick up the phone.

"It is important that this system is strictly policed and if it is abused in any way, Oftel takes swift action against the offending company.

"Oftel has taken action today because 1^st Rate Telecom has breached its licence by offering chat services on personal and specific premium rate numbers. This is clearly a misuse of these number ranges.

"There are many genuine companies in the market offering a range of different premium rate services, but consumers must be protected against persistent misuse by operators."

Interested parties have until 30 April 2003 to make representations on the proposed final order after which Oftel will consider whether or not to confirm the order.

Notes to Editors:

1. The draft final order is available on Oftel's website at www.oftel.gov.uk/publications/licensing/2003/frt0303.htm. Hard copies are available to the media from Oftel's Press Office, telephone 020 7634 8991, and to the public from Oftel's Research and Information Unit, telephone 020 7634 8761.

2. 1st Rate Telecom was allocated numbers in the ranges 07049 1xx xxx, 07059 1xxxxx, 07090 1xxxxx, 07005 1xxxxx, 07021 3xxxxx and 09111 84xxxx ranges by Oftel in 2002. In October 2002, Oftel received complaints that numbers 07090 100100 and 07090 101010 were being used to provide access to chat services. Oftel raised this with 1^st Rate Telecom and received assurances that the situation would be remedied. Calls to the offending numbers suggested that service had been ceased to them.

Oftel subsequently received further complaints that access to chat services was again being provided from these numbers. Oftel again contacted 1^st Rate Telecom and demanded immediate remedial action. 1^st Rate Telecom advised that access to the service had been ceased from all 070 numbers and that the service was being offered via 09111 848484.

Oftel received a further complaint in February 2003 that access was again being provided to the chat service from 07005 101010. After confirming that this was the case, Oftel concluded that 1^st Rate Telecom was acting in breach of its licence and decided that enforcement action was necessary.

Although 1^st Rate Telecom has now ceased service to the 070 and 091 numbers, Oftel is not satisfied that future breaches will not occur unless an order is made against 1^st Rate Telecom.

3. 070 numbers are personal numbers – mobile phone, pager and 'find me anywhere' numbers. They are typically charged at between 10p per minute and 50p per minute.

4. 091 numbers are non-content premium rate numbers. Content services, such as chat services, should not be run on this number range. Calls to premium rate numbers can be charged for at anything between 10p per minute and £1.50 per minute.

5. The National Numbering Conventions are the rules governing the use and management of telephone numbers in the UK and are available on Oftel's website at www.oftel.gov.uk/publications/numbering/2003/cons0303.htm.