Licence modifications have given Oftel tough new powers to help the Premium Rate Services watchdog ICSTIS tackle unscrupulous service providers.

Oftel has modified the licences of all public telecommunications operators (PTOs). The previous Condition 22 has been replaced with a new Condition 22 entitled 'Controlled Premium Rate Services', while minor drafting changes have been made to Condition 23 entitled 'Provision of Special Facilities Relating to Chatline and Message Services'.

The Secretary of State for Trade and Industry has also revoked and re-granted the class licences to run branch systems to provide Telecommunications Services (TSL) and International Simple Voice Resale Services (ISVR) in order to make these licences consistent with the modified PTO licences.

The new Condition 22 widens the definition of what type of Premium Rate Services (PRS) are caught by replacing the current definition of 'Controlled Services' with the definition of 'Controlled Premium Rate Services' (CPRS). In broad terms, only live PRS were caught by the former definition and, as a result, there was no code of practice governing the provision of other PRS, including recorded PRS, that could be recognised by the Director General.

The changes mean that a larger category of PRS will now be governed by a code of practice recognised by the Director General, with ICSTIS's two existing Codes of Practice being merged to create a single, user-friendly Code incorporating the new powers.

Under these new powers, the Director General can intervene in cases involving a wider range of different PRS than previously, and order the disconnection of a service if its operator has ignored a request from ICSTIS to withdraw it.

Oftel's new powers will apply to all premium rate services promoted on 090 phone numbers from fixed and mobile phones as well as premium text messages.

This work has been driven by changes in the premium rate market and certain misleading practices that have highlighted the need to strengthen the current regulatory regime in the PRS industry.

Examples of recent abuses include competition lines where callers run up high bills but never receive their prizes or, more recently, unsolicited premium rate text messages that promise cash prizes or invitations to join adult chatlines. As well as protecting consumers, the additional powers will also protect the reputation of legitimate PRS providers.

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