Ref: 43/03
Date: 18 July 2003

Oftel has today issued a final order to stop a company making nuisance calls to mobile phones using automatic calling equipment.

Komtel has been making very short calls to mobile phones which consumers were unable to answer. When the consumers rang back to see who has called unnecessary call charges were incurred.

Following a notice of intention issued by Oftel in June, a final order to prohibit Komtel from using automatic calling equipment in this manner has been published today.

Peter Waller, Deputy Director of Telecommunications said today:

"Oftel acted quickly following a number of complaints made against Komtel.

"This final order will stop Komtel using automatic calling equipment to trick consumers into calling a number back and incurring unnecessary charges on phone bills.

"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 Act, 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, as Oftel has detailed in its recent consultation on persistent misuse of an electronic communications network or electronic communications service.

Notes to Editors:

1. The final order is available on Oftel's website at www.oftel.gov.uk/publications/licensing/2003/komtel0703.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. 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. On 17 June 2003, Oftel published notice of its intention to issue a final order against Komtel in relation to improper use of automatic calling equipment. Interested parties were given until 15 July to comment on the proposals. After taking into consideration comments received, Oftel has decided to issue the final order.

4. 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.

5. Sections 126-129 of the Communications Act relate to persistent network misuse. Oftel’s consultation on "Statement of policy on the persistent misuse of an electronic communications network or electronic communications service" was published on 26 June 2003 and is available from: http://www.oftel.gov.uk/publications/consumer/2003/mis0603.htm.