Ref: 35/03
Date: 17 June 2003

Oftel has today initiated action to stop a company making nuisance calls to peoples’ mobile phones using automatic calling equipment.

Komtel made very short calls to mobile phones that people did not have time to answer, who then incurred unnecessary charges when they rang the number back to see who had called.

Oftel has today told Komtel that it intends to make an order prohibiting the company from using automatic calling equipment in this manner.

Peter Waller, Deputy Director General of Telecommunications said today:

"Oftel has acted quickly as it received over 40 complaints about nuisance calls from Komtel. During the period Oftel monitored calls from the company, we believe Komtel used automatic calling equipment to make up to 100,000 calls in a day.

"This would appear to be a blatant misuse of automatic calling equipment to trick consumers into calling the number back and incurring unnecessary charges.

"Oftel’s action requires Komtel to cease making these nuisance calls to consumers, or else face legal action from Oftel.

"Consumers should always think twice before returning calls to unrecognised numbers."

Oftel does not currently have the power to fine firms that breach their licences. Under proposals in the Communications Bill, Oftel and Ofcom will have the ability to issue fines of up to £5,000 for persistent network misuse. The use of automatic calling equipment to call consumers without their consent is likely to be considered to be a persistent network misuse.

Notes to Editors:

1. The final order is available on Oftel's website at www.oftel.gov.uk/publications/licensing/2003/komt0603. 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. In February 2003, Oftel began receiving complaints from consumers that they were receiving very short duration calls that they had been unable to answer. When they called the number back, the consumers found that they were either placed in a call queuing system and kept on hold for lengthy periods of time or had services marketed to them. Oftel opened an investigation on 27 February as short duration calls are frequently made using automatic calling equipment.

3. Condition 9 of the International Simple Voice Resale (ISVR) Licence that Komtel operates under prohibits the use of automatic calling equipment to make calls, without first obtaining the consent of the called party to receive such calls.

4. Clauses 124-127 of the Communications Bill relate to persistent network misuse.