Following the publication of its statement Regulation of Premium Rate Services in September 2000, Oftel is further consulting with stakeholders on licence modifications intended to strengthen the regulatory regime in the premium rate market.

The licence modifications would extend the current methodology for underpinning the ICSTIS regime by replacing the existing "Controlled Services" definition with a revised "Controlled Premium Rate Services" (CPRS) definition. This would ensure that the Director General has greater backstop powers to step in and require network operators to cut off services that are not following the ICSTIS Code of Practice and have not submitted to ICSTIS rulings.

While there is broad support to this in principle, some stakeholders have expressed concern about the detail of the new licence condition and, in particular, the scope of the new CPRS definition. There was particular concern that the proposed definition would unintentionally capture non-premium rate services, such as services running behind '07' and '08' numbers.

For this reason, Oftel published a further Statement in July 2001, Regulation of Premium Rate Services: Licence Modification, which concentrates on the definition of CPRS.

This statement notes that there is broad agreement with the view that CPRS should include all services where the person paying for the service is billed through the telephone bill, and where part of the overall charge is passed on by the operator to the company providing the content, product or service. Accordingly, this position is confirmed.

In the light of comments received, Oftel has also concluded that the most appropriate mechanism for containing the definition of CPRS is to link it to numbering, where possible, with those services that properly fall within the definition of other numbering ranges being excluded from the CPRS definition.

Oftel is proposing to exclude services using '07' numbers, which designate 'find-me-anywhere' services (mobile phones, pagers and personal numbers).

Oftel is also proposing that services with '08' numbers should be excluded, and that the CPRS definition should therefore be linked to calls which cost consumers more than the lowest price for a premium rate call from a fixed line (currently 10p).

In addition, Oftel is proposing that Chatline Services should always be treated as CPRS, irrespective of numbering range or price.

Subject to further views on the detail of the CPRS licence condition, Oftel and the Department of Trade and Industry will proceed with modification to the relevant licence conditions. Oftel expects the modified conditions to take effect later this autumn.

For further information contact Gavin Daykin (tel: 020 7634 5338/e-mail: gavin.daykin@oftel.gov.uk).