A consultation document issued by the Director General of Telecommunications on proposals to set conditions for the regulation of Premium Rate Services

Contents

Summary

Chapter 1 – Introduction

Chapter 2 – Conditions regulating Premium Rate Services

Chapter 3 – Consultation

Glossary

Annex A – Notification and Draft Premium Rate Services Condition

Annex B – Controlled Premium Rate Services Licence Condition

Annex C – Provision of Special Facilities Relating to Chatline and Message Services

Annex D – Clauses 117 to 121 from the Communications Bill

Summary

S.1 This consultation concerns proposals for the regulation of Premium Rate Services (PRS) under the new framework for the regulation of electronic communications networks and services. The basis for the new regulatory framework is four new EC Communications Directives which came into force in April 2002 and must be implemented throughout the EC by 25 July 2003. These new EC Directives are:

• Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities (‘the Access Directive’);

• Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (‘the Authorisation Directive’);

• Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (‘the Framework Directive’); and

• Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users’ rights relating to electronic communications networks and services (‘the Universal Service Directive’);

S.2 Additionally, there is a fifth Directive, Directive 2002/58/EC, concerning the processing of personal data and the protection of privacy in the telecommunications sector (‘the Privacy Directive’). This Directive was adopted slightly later than the other four Directives and has an implementation date of 31 October.

S.3 A key change of the new regulatory framework is that the telecommunications licensing regime will disappear from 25 July 2003 and providers of electronic communications networks and services will no longer be required to obtain a licence in advance of operating a system or providing services.

S.4 As a consequence, the basis of the current arrangements for the regulation of PRS will be removed, and it will be necessary to provide for a new basis for the continued regulation of such services within the new framework.

S.5 The Government has determined that the most effective way to replicate the existing regulatory structure which is underpinned through current telecoms licences is through provisions contained in the Communications Bill. This will be achieved through provisions enabling Ofcom to set conditions for the purpose of regulating the provision, content, promotion and marketing of PRS.

S.6 In operational terms, it is envisaged that there will be minimal impact upon responsible providers of PRS as defined in clauses 117(9), (10) and (11) of the Communications Bill and, in particular:

• the provision, content, promotion and marketing of PRS will continue to be regulated on a day-to-day basis through an approved code of practice which is administered and enforced by the enforcement authority (ICSTIS);

• this regime will be underpinned by statutory backstop powers through the setting of a condition requiring compliance with directions made by the enforcement authority; and

• failure by the relevant persons to comply with a direction made by enforcement authority would represent a breach of the condition, and prompt statutory backstop powers. This would result in those persons being subject to the enforcement regime set out in the Communications Bill.

S.7 This consultation paper provides notification of the condition to be set for the purpose of regulating the provision, content, promotion and marketing of PRS. The draft notification and condition is set out in the attached notification and condition, at Annex A, published today by the Director General of Telecommunications (‘the Director’).

S.8 Oftel is seeking views on:

• the terms of the proposed condition;

• the description of such persons upon whom this condition should be imposed; and

• the description of such services to which this condition should apply.

S.9 In making the proposals set out in the notification and condition, and explained in this consultation paper, the Director has considered the tests set out in clause 45(4) of the Communications Bill; namely that such proposals are:

• objectively justifiable in relation to the networks, services, facilities, apparatus or directories to which they relate;

• not such as to discriminate unduly against particular persons or against a particular description of persons;

• proportionate to what they are intended to achieve; and

• in relation to what they are intended to achieve, transparent.

S.10 The Director considers that his proposals meet all these objectives and the duties set out in clause 3 of the Communications Bill and, in particular, the need to further the interests of consumers.

S.11 Unless otherwise stated, Oftel has sought to reflect current policy where appropriate, as set out in Oftel’ statement, Regulation of Premium Rate Services: licence modification, published on 24 July 2001. This is available on Oftel’s website at www.oftel.gov.uk/publications/numbering/prslic0701.htm.

S.12 Oftel welcomes comments on any of the matters set out in this paper by 14 July 2003. For details on how to respond, see chapter 3.

S.13 Following receipt and consideration of any comments on proposals set out in the notification and condition, and in this consultation paper, the Director will publish a final notification on the conditions to be set for the purpose of regulating the provision, content, promotion and marketing of PRS.

Chapter 1 – Introduction

What are Premium Rate Services?

1.1 Premium Rate Services (PRS) are services commonly containing information or entertainment via the telephone, fax, PC (eg Internet), mobile (eg premium rate short message services (SMS), or interactive digital TV. Services range from sports and voting lines to competition, chat and business information services. PRS typically vary in cost from 10 pence per call to £1.50 per minute. The money paid for the telephone call is shared between the telephone companies carrying the service and the organisation responsible for the content, product or service.

1.2 The main purpose of regulation in the premium rate sector is to secure the adequate protection of consumers from running up high bills that they cannot afford to pay, and to ensure that adequate standards are applied to premium rate promotions and services. Regulation is justified because of the genuine risk to the availability of the customers’ telecommunications service given the ease with which these services can be accessed, and the expensive nature of the costs involved.

How are Premium Rate Services currently regulated in the UK?

1.3 Under current arrangements, the regulatory regime for PRS follows a self- and co-regulatory approach, with the primary role of consumer protection falling to the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS). ICSTIS is the industry-funded regulatory body for all premium rate charged telecommunications services, and has responsibility for regulating the content and promotion of services through its Code of Practice.

1.4 ICSTIS carries out its role by undertaking the following tasks:

• setting and maintaining standards for the content and promotion of PRS, and keeping these standards under review;

• consulting industry and other interested parties before changing these standards;

• monitoring services to ensure that both the content and promotional material comply with these standards;

• determining any categories of PRS which may only be provided on the basis of written permission from ICSTIS, identifying conditions which should be attached to the grant of such prior permission and keeping such categories under review;

• investigating and adjudicating upon complaints relating to the content and promotion of PRS and recommending action designed to achieve compliance where the Code has been breached, which may include the imposition of sanctions;

• administering a system for the payment of claims for compensation for unauthorised use of Live Services, and providing a system for adjudications where such claims are disputed; and

• publishing reports on its work at regular intervals and generally publicising its role.

1.5 ICSTIS’ provisions only apply directly to those who provide the information and content services (‘PRS providers’), and the effectiveness of the ICSTIS regime relies on the co-operation of all telecoms operators who have contracted, directly or indirectly, with PRS providers to provide network facilities (‘terminating network operators’) to support ICSTIS’ sanctions.

1.6 Consequently, under current arrangements, ICSTIS requires all terminating network operators to enter into agreements with them before providing PRS. These agreements provide that where such operators enable third parties to offer PRS via their network they are required to ensure that that these third parties comply with the ICSTIS Code through the establishment of contractual arrangements between the terminating network operator and the PRS provider.

1.7 Oftel’s involvement in the premium rate regulatory regime is to provide statutory support to the work of ICSTIS, underpinning the ICSTIS regulatory regime for all services that meet the definition of Controlled PRS (CPRS). Essentially, CPRS are more narrowly defined than PRS and, in particular, do not include services which cost up to and including a certain amount which is determined by Oftel (currently 10 pence), other than Chatline Services which are automatically included. Nor does it include services which are terminated outside the United Kingdom, even though calls are made to those services within the United Kingdom. Accordingly, while ICSTIS continues to regulate all PRS, support by network operators for the regulation of PRS that falls outside the definition of CPRS remains voluntary.

1.8 Additionally, Oftel’s powers are generally limited, in practical terms, to imposing controls on those who are granted Telecommunications Act licences by the Secretary of State which, under the Telecommunications Act 1984, anyone running a telecommunications systems system in the UK is required to have.

1.9 The relevant licence conditions are condition 22 of all Public Telecommunications Operator (PTO) licences and condition 26 of the class licences to run branch systems to provide Telecommunications Services (TSL) and to provide International Simple Voice Resale (ISVR). The existing licence condition is attached at annex B.

1.10 This condition effectively provides that CPRS may not be provided by a licensee unless the Director has recognised a code, and that the code shall only be recognised by the Director if the Director is satisfied that:

• the code’s provisions are capable of properly regulating the provision of CPRS, including making adequate provision for compensating those who suffer as a result of the provision of CPRS;

• adequate arrangements have been made for the constitution (including arrangements for the funding) of a body of persons to apply and administer the Code (i.e. ICSTIS).

1.11 In the event that ICSTIS recommends to the Director that any person should no longer be permitted, or should not be permitted, to provide a particular CPRS or any CPRS, then the Director may direct the telephone company to cease to provide, or not to provide, the means of running the CPRS. Failure to comply with a direction made by the Director would amount to a breach of the CPRS licence condition, and could result in revocation of the licence.

1.12 More information can be found in Oftel’s statement, Regulation of Premium Rate Services: licence modification, published on 24 July 2001. This is available on Oftel’s website at www.oftel.gov.uk/publications/numbering/prslic0701.htm.

The new regulatory framework

1.13 A new regulatory framework for electronic communications networks and services will enter into force in the United Kingdom on 25 July 2003. The basis for the new regulatory framework is five new EU Communications Directives:

(i) the Framework Directive;

(ii) the Access Directive;

(iii) the Authorisation Directive;

(iv) the Universal Service Directive; and

(v) the Privacy Directive.

1.14 This new regulatory framework is designed to create harmonised regulation across Europe and is aimed at reducing entry barriers and fostering effective competition to the benefit of consumers.

1.15 The Framework Directive provides the overall structure for this new regulatory framework and sets out fundamental rules and objectives which read across all the new directives. As its name suggests, it is the directive that establishes the new framework. Article 8 of the Framework Directive sets out three key policy objectives which have been taken into account in the preparation of this document. These are that national regulatory authorities shall:

(i) promote competition in the provision of communication networks, services and associated facilities;

(ii) contribute to the development of the internal market; and

(iii) promote the interests of EU citizens.

1.16 The Authorisation Directive establishes a new system whereby any person will be generally authorised to provide communications services and/or networks without prior approval. The general authorisation replaces the existing licensing regime. The Universal Service Directive defines a basic set of services that must be provided to end-users. The Access and Interconnection Directive sets out the terms on which providers may access each others’ networks and services with a view to providing publicly available electronic communications services.

1.17 These four Directives must be implemented in the UK in other EU Member States on 25 July 2003.

1.18 The Privacy Directive establishes users’ rights with regard to the privacy of their communications. This Directive was adopted slightly later than the other four Directives and has an implementation date of 31 October 2003.

Implementation

1.19 In the UK, it is intended to implement the first four Directives (the ‘Directives’) through a new Communications Act. The Communications Bill was introduced into the House of Commons on 19 November 2002 and is available at www.communicationsbill.gov.uk. The latest version of the Communications Bill is that which was introduced into the House of Lords on 5 March 2003, having completed its passage through the Commons on the preceding day. It can be found via a link from that website (references to the Communications Bill in this document are references to that version of the Bill).

1.20 The Bill may be subject to change as it passes through Parliament, and the Director anticipates that amendments will be made to the relevant provisions dealing with the regulation of PRS (clauses 117 to 121 of the Bill, and attached at annex D). In particular, it is likely that there may be amendments to those providers defined in clause 117(11) to ensure that where PRS are provided from electronic communications networks or services overseas via ordinary international direct dialled numbers they continue to be susceptible to the regulatory regime. Additionally, the Director anticipates that there may potentially be amendments to those providers defined in clauses 117(9) and 117(10) in order to ensure that all relevant classes of providers are appropriately defined. In the event that changes to the Bill provisions consequentially impact upon those providers intended to be subject to the Director’s backstop powers, the PRS condition will be modified to reflect these changes, where appropriate.

1.21 It is intended that the Communications Bill will receive royal assent by 25 July 2003. However, in the event that the Communications Bill does not receive royal assent by 25 July 2003, the government has acknowledged that implementation will need to occur by Statutory Instruments (the ‘Statutory Instruments’) made under the European Communities Act 1972 for an interim period until the Bill enters into force. A draft of the Statutory Instruments was issued for consultation on 17 March 2003 and this consultation document should be read in conjunction with that document (see www.communicationsbill.gov.uk/Interim_Implementation_update.htm).

1.22 In particular, the Statutory Instruments propose to carry forward current licence conditions 22 and 23 (see annexes B and C of this document) for any interim period by way of continuation notices (see part 8 of Schedule 2 to the draft Electronic Communications (Networks and Services) Regulations 2003, part of the consultation referred to in the preceding paragraph). This means that the proposed condition will only enter into force following the commencement of the Communications Act.

1.23 Further, if the Communications Bill does receive royal assent by 25 July 2003, it is expected that Ofcom will not be ready by the summer to assume all of its duties foreseen by the Communications Bill. Should that be the case, the Communications Bill makes specific provision to enable Ofcom’s functions to be carried out by the Director or the Secretary of State for a transitional period. For these reasons, this document refers to the Director rather than Ofcom.

From licensing to general authorisation

1.24 One key change of the new framework is that the telecommunications licensing regime will disappear from 25 July 2003 and providers of electronic communications networks and services will no longer be required to obtain a licence in advance of operating a system or providing services. The licensing regime will be replaced by a general authorisation to provide electronic communications networks or services.

1.25 Under the new framework, while a licence is not required, communications providers may be subject to a number of general conditions and, for some providers, specific conditions applicable only to an individual provider (eg, obligations flowing from a designation as a provider of universal service or a finding of significant market power).

1.26 Oftel is consulting separately in a series of other documents about specific conditions that apply to individual communication providers.

How will the regulatory regime for Premium Rate Services be ensured under the new regime?

1.27 In implementing the new regulatory framework, the Government concluded that PRS were excluded from the definition of electronic communications services within the meaning of the Directives, or within the meaning of the Bill, as they are not a service consisting in, or having as its principal feature, the conveyance of signals. For this reason, the provision of PRS cannot be directly regulated by way of the general conditions – general conditions can only apply to persons providing an electronic communications network or service.

1.28 As a consequence, the Government determined that the most effective way to ensure the continued regulation of PRS was to include separate provisions in the Communications Bill (clauses 117 to 121). The relevant provisions dealing with the regulation of PRS are attached at annex D.

1.29 The Government noted that the EC Communications Directives do not prevent the regulation of services provided using electronic communications networks and services more generally. In particular, paragraph 2 of Article 1 of the Framework Directive provides that the Directive is without prejudice to obligations imposed by national law in respect of services provided using electronic communications networks and services.

1.30 Although the Bill is not yet in force Oftel is carrying out this consultation now to ensure the continued regulation of PRS following the transition to the new regime should the Bill enter into force on or before 25 July 2003. As explained above, should there be an interim period between 25 July 2003 and the entry into force of the Bill, PRS will continue to be regulated by the continuation of current licence conditions (set out at annexes B and C to this document).

1.31 The notification at annex A and this consultation document on the matters set out in the notification are published by the Director in accordance with provisions contained in sections 44 and 45 of the Communications Bill.

Chapter 2 – Conditions regulating Premium Rate Services

The new regulatory framework and Premium Rate Services

Background

2.1 As set out in chapter 1, the Government has determined that the most effective way to ensure the continued regulation of PRS under the new regulatory framework is to include separate provisions in the Communications Bill. These provisions have been subject to various discussions over recent months, and the latest version are detailed in sections 117 to 121 of the Bill and are attached at annex D. These provisions remain subject to discussion, and may be subject to further change as the Bill passes through Parliament.

2.2 The primary objective has been to ensure that the Bill maintains adequate protection for consumers using PRS and, in particular, preserves, as far as appropriate, current arrangements underpinning the effectiveness of the self- and co-regulatory regime. The Director remains committed to ensuring that the scope and level of regulation is the minimum necessary in order to obtain appropriate outcomes.

2.3 The Bill seeks to achieve this by retaining the basis for the current regulatory regime, with the primary role for consumer protection falling to a co-regulatory body which has responsibility for regulating PRS through a code of practice. It is envisaged that the code approved under clause 118 will be that which is drawn up by ICSTIS, modelled on its current code, albeit modified to take account of the new regulatory framework. ICSTIS is currently consulting on a revised version of the code, and is seeking responses by no later than Monday 16 June 2003. The code is available on the ICSTIS website at: www.icstis.org.uk/icstis2002/pdf/CODE%20CONSULTATION%202%20MAY%202003.PDF.

2.4 This chapter summarises how it is envisaged that the regulatory regime will work in practice and, in particular, seeks views on the scope of the Director’s statutory backstop powers. Specifically, Oftel is seeking views on:

• the terms of the proposed condition;

• the description of such persons upon whom this condition should be applied; and

• the description of such services to which this condition should apply.

The Premium Rate Service Condition

2.5 Clause 117(1) of the Bill provides the Director with the power to set conditions for the purpose of "regulating the provision, content, promotion and marketing of PRS" that "bind the persons to whom they are applied."

2.6 Clause 117(3) provides that the only provision that may be made by conditions is provision requiring the person to whom the condition applies to comply, to the extent required by the condition, with:

(b) if there is no such code, the provisions of the order for the time being in force under section 119.

2.7 The condition can therefore only apply in limited circumstances, and in accordance with the enforcement provisions contained in the approved code – see chapter 2.3. The proposed requirements are set out in paragraph 1 of the proposed condition at annex A.

2.8 The power to set conditions in the context of binding "the persons to whom they are applied" is defined in clause 117(2) of the Bill, and provides the Director with the power to apply conditions either:

(a) generally to every person who provides a premium rate service; or

(b) to every person who is of a specified description of such persons, or who provides a specified description of such services.

2.9 There is therefore a degree of flexibility in applying conditions, and the Director has the power to apply conditions to every person who provides PRS as defined in sections 117(9)(10) and (11). This flexibility of approach is important, and ensures that the regulatory regime is able to continue to remain relevant with developments in a rapidly changing sector of the market.

2.10 As already outlined in paragraph 1.20, the Director anticipates that amendments will be made to those providers defined in clause 117(11), and that there may potentially be amendments to those providers defined in clauses 117(9) and 117 (10). In the event that changes to the Bill provisions consequentially impact upon those providers intended to be subject to the Director’s backstop powers, the PRS condition will be modified to reflect these changes, where appropriate.

2.11 It remains the Director’s intention not to extend the definition of those persons or services that will be subject to statutory backstop powers beyond those that are currently subject to these powers. The Director therefore proposes that the condition should only be applied to specified descriptions of persons and services and, in particular, should only be applied to providers of electronic communications networks and services in two distinct scenarios, as detailed in paragraph 2(c) of the proposed condition attached at annex A, namely:

(i) where the provider of the electronic communications network and service is itself providing CPRS; or

(ii) where the provider of the electronic communications network and service is carrying CPRS on behalf of third parties.

2.12 The Director considers that restricting those persons and services to whom

the condition should be applied in this way provides a broadly comparable regime to that at present. This reflects Oftel’s current powers which are limited, in practical terms, to imposing controls directly upon those who are granted Telecommunications Act licences by the Secretary of State where the licensee is providing, or carrying, CPRS:

• the Director retains backstop powers for enforcing the regulatory regime in respect of those providers who are essentially carrying the relevant service as defined in clauses 117(10) and (11) of the Bill. For the avoidance of doubt, these backstop powers encompass providers of CPRS where they are also providing the electronic communications network or service;

• ICSTIS remains responsible for regulating the providers of PRS as defined in its code of practice (essentially as set out in clause 117(9)(a) to (d) of the Bill).

2.13 The proposed definition of CPRS is set out in clause 2(e) of the draft condition, and maintains the current approach to defining such services, as set out in the existing licence condition. The intention remains to define CPRS more narrowly than PRS, and to restrict the definition of CPRS so that only those services which have the potential to give rise to particular consumer detriment are captured.

2.14 Accordingly, the Director proposes that the definition of CPRS should be restricted to those services which meet the definition of PRS, as defined in clause 117(7) of the Bill, and additionally:

– where a call is charged at a ‘rate’ (that is the total cost is determined by call duration) and that "charge rate" exceeds 10 pence per minute. This is irrespective of duration. For example, a service charged at £1 per minute would be captured under this determination whether or not the call lasted for five minutes or five seconds (as it is still charged at a ‘rate’ above 10 pence per minute);

– where a call is not charged at a "rate" (that is the call charge is not time-dependent) and that call cost exceeds 10 pence.

2.15 Additionally, it is proposed that the definition of CPRS excludes those services which are terminated outside the United Kingdom, even though calls are made to those services within the United Kingdom by dialling ordinary international telephone numbers. These services are currently regulated through voluntary arrangements between ICSTIS and UK network operators, with the links between offshore providers and the United Kingdom being shut down in cases where there have been clear breaches of the ICSTIS code.

2.16 The Director is minded to maintain the current approach to such services and, as already explained, anticipates that amendments to the Bill are likely in relation to those providers defined in clause 117(11) to ensure that PRS terminated outside the United Kingdom by dialling ordinary international numbers remain subject to the regulatory regime. During the consultation period the Director will wish to be satisfied that adequate arrangements, or undertakings in principle, are in place to provide for an effective self-regulatory regime in this area. In the absence of such comfort, the Director may bring such services within the definition of CPRS.

2.17 The Director considers that the tests set out in clause 45(4) of the

Communications Bill are met in relation to his proposal for setting the condition:

• the condition is objectively justifiable in so far as regulation is justified to secure the adequate protection of consumers from running up high bills that they cannot afford to pay, and to ensure that adequate standards are applied to the provision, content, promotion and marketing of PRS;

• the condition is non-discriminatory in so far as it does not benefit particular undertakings, and will be applied to all relevant undertakings involved in providing, or carrying, CPRS;

• the condition is proportionate in so far as it seeks to maintain the current self- and co-regulatory regime, with statutory underpinning only being applied to specified descriptions of persons and services. In particular, the draft condition may only be applied to those providers of electronic communications networks and services who are providing, or carrying, CPRS. This ensures that the current approach will be retained whereby only those services which are deemed to potentially give rise to significant consumer detriment are caught;

• the condition is transparent in that the nature and intention of the proposal are set out clearly in this consultation document.

2.18 Additionally, the Director considers that his proposals meet the duties set out in clause 3 of the Communications Bill and, in particular, the need to further the interests of consumers.

Implications of the new regulatory regime

2.19 In operational terms, it is not expected that the proposed regulatory regime will have any impact upon responsible providers of PRS as defined in clauses 117(9), (10) and (11) of the Bill given that it largely retains the existing arrangements.

2.20 As already explained, the primary role for consumer protection will continue to fall to a co-regulatory body which will have responsibility for regulating PRS through an approved code. It is envisaged that the code approved under clause 118 will be that which is drawn up by ICSTIS, and is currently being consulted on.

2.21 The Director will continue to underpin the co-regulatory regime through effective powers, defined through the condition, which would outline the scope of the Director’s involvement in the PRS regulatory regime. Similar to current arrangements, these would work on the basis of effective backstop powers, and would only be used as a last resort following a failure by the relevant persons to comply with a Direction by the co-regulatory body for the purpose of enforcing the provisions of the approved code.

2.22 It is envisaged that the key responsibilities that exist under the current regulatory regime will be maintained:

• Oftel retains backstop powers for enforcing the regulatory regime in respect of those providers who are essentially carrying the relevant service as defined in clauses 117(10) and (11) of the Bill; and

• ICSTIS remains responsible for regulating the providers of PRS as defined in its code of practice (essentially as set out in clause 117(9)(a) to (d) of the Bill). It remains the responsibility of these providers of PRS to ensure that the provision, content, promotion and marketing of all their PRS complies with all relevant provisions of the ICSTIS Code.

2.23 In addition to direct obligations on PRS providers, the actions of providers of electronic communications networks and services will continue to be crucial, and there will continue to be clear requirements upon such providers to support the ICSTIS regime, including:

• providing information about PRS providers;

• supporting ICSTIS in the operation of its levy-based funding arrangements;

• barring access to services where necessary; and

• withholding revenue payments to service providers when requested.

2.24 In particular, it will continue to be the case that relevant providers of electronic communications networks and services will be required to ensure third party compliance with the Code through the establishment of satisfactory arrangements. The Director considers that the practical implication of the potential requirement to comply with any directions by the enforcement authority makes it necessary that such providers ensure that there are satisfactory arrangements in place in advance to enable them to comply with Directions and avoid being in breach of the condition.

Chapter 3 – Consultation

3.1 Oftel is seeking the views of industry and others on the proposals outlined in this document. The closing date for submission of comments is 14 July 2003. Following receipt and consideration of any comments on the draft notification and condition, Oftel will publish a final notification and condition by 25 July 2003.

3.2 Views are sought on both the form and clarity of the draft notification and condition and on such specific points as are raised in it. The consultation also covers certain definitions to be included in the condition. Comments should be made in writing and sent to:

Hayley Whittaker
PRS condition consultation
Numbering Unit
Oftel
50 Ludgate Hill
London
EC4M 7JJ

fax: 020 7634 8784
e-mail: hayley.whittaker@oftel.gov.uk

Further copies of this document

3.3 Paper copies of this document and more accessible formats such as large print, Braille, disc and audio cassette can be made available on request. Please contact Oftel’s Research and Information Unit by phoning 020 7634 8761 or by sending an e-mail to infocent@oftel.gov.uk.

Publication of representations made by stakeholders

3.4 In the interests of transparency, all representations will be published, except where respondents indicate that a response, or part of it, is confidential. Respondents are therefore asked to separate out any confidential material into a confidential annex which is clearly identified as containing confidential material. Oftel will take steps to protect the confidentiality of all such material from the moment that it is received at Oftel’s offices. However, in the interests of transparency, respondents should avoid applying confidential markings wherever possible.

Cabinet Office code of practice on written consultation

3.6 Oftel considers that this document meets the Cabinet Office code of practice on written consultation documents with one exception. The code states that the standard minimum period for consultation should be 12 weeks. However, given the exceptional circumstances of the consultation and the need to issue a final notification and condition by 25 July 2003, Oftel has decided that a one month consultation period is appropriate. Oftel has also taken account of the fact that existing policy is largely being retained. The code is reproduced below for convenience. If you have any comments or complaints about this consultation process please contact:

Oftel Co-ordinator for the code of practice:

Rob Jex
Oftel
50 Ludgate Hill
London
EC4M 7JJ

tel: 020 7634 5350
fax: 020 7634 8943
e-mail: rob.jex@oftel.gov.uk

3.7 Timing of consultation should be built into the planning process for a policy (including legislation) or service from the start, so that it has the best prospect of improving the proposals concerned, and so that sufficient time is left for it at each stage.

3.8 It should be clear who is being consulted, about what questions, in what timescale and for what purpose.

3.9 A consultation document should be as simple and concise as possible. It should include a summary, in two main pages at most, of the main questions it seeks views on. It should make it as easy as possible for readers to respond, make contact or complain.

3.10 Documents should be made widely available, with the fullest use of electronic means (though not to the exclusion of others), and effectively drawn to the attention of all interested groups and individuals.

3.11 Sufficient time should be allowed for considered responses from all groups with an interest. Twelve weeks should be the standard minimum period for consultation.

3.12 Responses should be carefully and open-mindedly analysed, and the results made widely available, with an account of the views expressed, and reasons for decisions finally taken.

3.13 Departments should monitor and evaluate consultations, designating a consultation co-ordinator who will ensure that all the lessons are disseminated.

Glossary

(Terms used in this consultation document not covered in the Definitions section of the PRS condition)

The Access Directive

Directive 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities.

The Authorisation Directive

Directive 2002/20/EC on the authorisation of electronic communications networks and services.

The Communications Bill

A Bill currently before Parliament that is intended to implement the EU Directives listed in this Glossary (save for the Privacy Directive) and therefore to bring about changes to the regulatory framework for electronic communications in the United Kingdom. The latest version of the Communications Bill is that which was introduced into the House of Lords on 5 March 2003, having completed its passage through the Commons on the preceding day. It is available via a link at www.communicationsbill.gov.uk (references to the Communications Bill in this document are references to 5 March version).

The Framework Directive

Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services.

General Conditions of Entitlement

Conditions, including one that specifically covers the Allocation and Adoption of Telephone Numbers, to which Communications Providers may be subject. These are set out in full in the joint DTI and Oftel consultation published on 17 March 2003 available at www.communicationsbill.gov.uk/Interim_Implementation_update.htm.

The Privacy Directive

Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector.

The Universal Service Directive

Directive 2002/22/EC on universal service and users' rights relating to electronic communications networks and services.

Annex A – Notification under clause 45(2) of the Communications Bill 2003

Proposal to set conditions under clause 117 regulating premium rate services

1. The Director General of Telecommunications (‘the Director’) in accordance with clause 45(2) of the Communications Bill 2003 (‘the Bill’) (print of 5 March 2003) hereby makes the following proposal to set conditions under clause 117 of the Bill regulating premium rate services.

2. The Director is proposing to set the condition set out in the Annex to this Notification.

3. The effect of, and the Director’s reasons for making, the proposal for the setting of condition referred to in paragraph 2 above are contained in chapter 2 of the consultation document published with this Notification.

4. Representations about the proposal for the setting of the condition referred to in paragraph 2 above, and the accompanying consultation document, may be made to the Director by 14 July 2003.

5. Except as otherwise defined in this Notification, words or expressions used shall have the same meaning as in the Bill.

DAVID ALBERT EDMONDS
DIRECTOR GENERAL OF TELECOMMUNICATIONS

12 June 2003

Annex to the Notification

[DRAFT] CONDITION UNDER CLAUSE 117 REGULATING PREMIUM RATE SERVICES

1. The Communications Provider shall comply with:

(a) directions given in accordance with an Approved Code by the Enforcement Authority and for the purposes of enforcing the provisions of the Approved Code; and

(b) if there is no Approved Code, the provisions of the order for the time being in force under section 119 of the Act.

2. In this Condition,

(a) ‘the Act’ means the Communications Act 2003;

(b) ‘Approved Code’ means a code approved for the time being under section 118 of the Act;

(c) ‘Communications Provider’ means either

(i) a person who

(A) is the provider of an Electronic Communications Service or an Electronic Communications Network used for the provision of a Controlled Premium Rate Service; and

(B) is a Controlled Premium Rate Service Provider in respect of that Controlled Premium Rate Service;

(ii) a person who

(A) is the provider of an Electronic Communications Service used for the provision of a Controlled Premium Rate Service; and

(B) under arrangements made with a Controlled Premium Rate Service Provider, is entitled to retain some or all of the charges received by him in respect of the provision of the Controlled Premium Rate Service or of the use of his Electronic Communications Service for the purposes of the Controlled Premium Rate Service;

or

(iii) a person who

(A) is the provider of an Electronic Communications Network used for the provision of a Controlled Premium Rate Service; and

(B) has concluded an agreement relating to the use of the Electronic Communications Network for the provision of that Controlled Premium Rate Service with a Controlled Premium Rate Service Provider;

(d) Chatline Service’ means a service which consists of or includes the enabling of more than two persons (the participants) to simultaneously conduct a telephone conversation with one another without either:

(i) each of them having agreed with each other; or

(ii) one or more of them having agreed with the person enabling such a telephone conversation to be conducted,

in advance of making the call enabling them to engage in the conversation, the respective identities of the other intended participants or the telephone numbers on which they can be called. For the avoidance of any doubt, a service by which one or more additional persons who are known (by name or telephone number) to one or more of the parties conducting an established telephone conversation can be added to that conversation by means of being called by one or more of such parties is not on that account a Chatline Service, if it would not otherwise be regarded as such a service;

(e) ‘Controlled Premium Rate Service’ means a Premium Rate Service (other than a Mobile Service, a Personal Numbering Service or a Radiopaging Service, or a service which is only accessed via an International Call) in respect of which either

(i) the charge for the call by means of which the service is obtained or the rate according to which such call is charged is a charge or rate which exceeds 10 pence per minute; or

(ii) the service is a Chatline Service;

(f) ‘Controlled Premium Rate Service Provider’ means a person who

(i) provides the contents of a Controlled Premium Rate Service;

(ii) exercises editorial control over the contents of a Controlled Premium Rate Service;

(iii) packages together the contents of a Controlled Premium Rate Service for the purpose of facilitating its provision; or

(iv) makes available a Facility comprised in a Controlled Premium Rate Service;

(g) ‘Enforcement Authority’, in relation to an Approved Code, means the person who under the code has the function of enforcing it;

(h) ‘Facility’ includes reference to those things set out at section 117(13) of the Act;

(i) ‘International Call’ means a call which terminates on an Electronic Communications Network outside the United Kingdom;

(j) ‘Mobile Service’ shall have the meaning ascribed to it in the national Telephone Numbering Plan;

(k) ‘National Telephone Numbering Plan’ means a document published by Ofcom from time to time pursuant to section 53 of the Act;

(l) ‘Personal Numbering Service’ shall have the meaning ascribed to it in the National Telephone Numbering Plan;

(m) ‘Premium Rate Service’ shall have the meaning ascribed to it by section 117(7) of the Act;

(n) ‘Radiopaging Service’ shall have the meaning ascribed to it in the National Telephone Numbering Plan;

(o) Except as otherwise defined, words or expressions used shall have the same meaning as in the Act.

Annex B – Controlled Premium Rate Services Licence Condition

Condition [22/26] (see notes one (relating to condition 22) and two (relating to condition 26) below)

22.1 The Licensee may only provide a Controlled Premium Rate Service in whole or part by means of the Applicable Systems (whether or not Messages comprised in, or resulting from the provision of, such Services, have previously been, or are subsequently conveyed by, any other public telecommunication system) where the Relevant Condition is satisfied.

22.2 The Licensee may only provide a telecommunication service to another person by means of the Applicable Systems by means of which that person, to the knowledge of the Licensee, provides a Controlled Premium Rate Service (whether or not Messages comprised in, or resulting from the provision of, such Services have previously been, or are subsequently conveyed by, any other public telecommunication system) where the Relevant Condition is satisfied.

22.3 The Relevant Condition is that there is in effect at the time the Controlled Premium Rate Service concerned is provided, a code of practice governing the provision of such a Service, which has been recognised by the Director for the purposes of this Condition after consultation with the Licensee and with any body which he considers to be representative of those wishing to provide such Services.

22.4 A code of practice shall only be recognised for the purposes of paragraph 22.3 if the Director is satisfied that:

(a) its provisions are capable of properly regulating the provision of the Controlled Premium Rate Services to which it relates and, without prejudice to the generality of the foregoing, which provisions may include making adequate provision for compensating those who suffer as a result of the provision of such Services or any description of such Services; and

(b) adequate arrangements have been made for the constitution (including the arrangements for the funding) of a body of persons to apply and administer the Code (referred to in this Condition as "the Body applying and administering the Code").

22.5 A code of practice is recognised for the purposes of this Condition where it is specified as such in a determination made by the Director, and the Director may, at any time after such a code is recognised and after giving not less than one month’s notice in writing of his intention to the Body applying and administering the Code, determine that its recognition be revoked if he is satisfied that its provisions are not capable of properly regulating the provision of the Controlled Premium Rate Services to which it relates, or that it is not being properly applied and administered (whether, without prejudice to the generality of the foregoing, due to lack of funding or otherwise).

22.6 For the purposes of this Condition, the Director may recognise a code of practice in relation to any description of Controlled Premium Rate Service or to all Controlled Premium Rate Services, and the provisions of this Condition shall apply accordingly.

22.7 If:

(a) a recommendation is made to the Director by the Body applying and administering the Code that any person (including the Licensee) should no longer be permitted or should not be permitted to provide a particular Controlled Premium Rate Service or any Controlled Premium Rate Services (whether or not he is providing it or them when the recommendation is made);

(b) the Licensee has failed to comply with a recommendation made by the Body applying and administering the Code in accordance with any of the procedures set out in that Code that the Licensee cease to provide, or, as the case may be, shall not provide the relevant Service or Services either itself or to any other person; and

(c) the Director considers it appropriate,

the Director may direct the Licensee to cease to provide, or, as the case may be, not to provide that person or any other person with any service facilitating or enabling the provision of the relevant Controlled Premium Rate Service or Services or, as the case may be, itself cease to provide, or, as the case may be, not to provide the relevant Controlled Premium Rate Service or Services.

22.8 The Director may determine, subject to such conditions as he thinks fit, that:

(a) any Controlled Premium Rate Service of any description, or any individually specified such Service provided by a person named in the determination, is not to be treated as a Controlled Premium Rate Service for the purposes of this Condition; and

(b) any individually specified Controlled Premium Rate Service in respect of which a determination under sub-paragraph (a) above has been made or which is within a description of Controlled Premium Rate Services in respect of which such a determination has been made, is to be treated as a Controlled Premium Rate Service for those purposes notwithstanding such determination,

and where a determination of the kind specified in sub-paragraph (b) above is made the provisions of this Condition shall apply to such a Service from the date specified in the determination.

22.9 For the purposes of ascertaining whether a service is a Controlled Premium Rate Service, the Director shall determine, from time to time, in accordance with the procedure set out in paragraph 22.10 below, an amount for the charge of the Call by means of which the service is obtained or the rate according to which such Call is charged or both which, when exceeded, means that sub-paragraph 22.11(a)(iii)(A) of the definition of Controlled Premium Rate Services is satisfied. In making such a determination, the Director shall have regard to the prevailing standard rates for premium rate calls of the Licensee and other licensed operators providing Controlled Premium Rate Services from time to time.

22.10 Where a determination is made pursuant to paragraph 22.9, the procedure shall be as follows:

(a) before making the determination, the Director shall serve upon the Licensee a notice informing the Licensee of any amount he proposes to specify in the determination;

(b) the notice in sub-paragraph (a) above shall be copied to the Body applying and administering the Code and to Interested Parties at the same time as being served upon the Licensee;

(c) the Licensee, the Body applying and administering the Code and Interested Parties shall be given a period of not less than 28 days in which to make representations;

(d) the representations made by the Licensee or the Body applying and administering the Code or Interested Parties or any of them, shall be published in such manner as the Director considers appropriate to bring such representations to the attention of the Licensee, the Body applying and administering the Code and Interested Parties (having regard to the wish of the Licensee or such body to keep matters contained in any representation confidential);

(e) the Licensee, the Body applying and administering the Code and Interested Parties shall be given a further period of not less than 14 days in which to make any observations on the representations which have been published;

(f) when the Director has considered the representations and any observations made, he shall prepare a draft determination and statement of reasons for that determination and send it to the Licensee, the Body applying and administering the Code and any Interested Party who has submitted representations or observations, or both, giving those persons a period of not less than 14 days within which to comment;

(g) after considering any comments received, the Director shall make the determination and publish such determination in the same manner he published the representations referred to in sub-paragraph (d) above; and

(h) the provisions of this Condition shall apply from the date specified in the determination.

22.11 In this Condition:

(a) subject to paragraph 22.12 below and to any determination made by the Director pursuant to paragraph 22.8 above, a Controlled Premium Rate Service is one (other than a Find-me-anywhere Service) in respect of which:

(i) the person responsible for paying the charges for the Call by means of which the Service is obtained is billed by means of his telephone bill for any amount in respect of the provision of the Service;

(ii) part of the overall charge paid by that person to the Licensee for the Service, being payment for the content of the Call or other product or service delivered in the course of, or as a direct consequence of, the Call, is passed on by the Licensee, directly or indirectly, to the person providing the Service (or, where that person is the Licensee himself, to that part of the Licensee’s business which provides the Service and is credited with revenue from that part of its business which conveys the Messages comprised in, or resulting from the provision of, the Service); and

(iii) either

(A) the charge for the Call by means of which the Service is obtained or the rate according to which such Call is charged is a charge or rate which exceeds any amount determined by the Director in a determination made pursuant to paragraph 22.9 of this Condition; or

(B) the Service is a Chatline Service.

(b) "Chatline Service" means a service which consists of or includes the enabling of more than two persons (the participants) simultaneously to conduct a telephone conversation with one another without either:

(i) each of them having agreed with each other; or

(ii) one or more of them having agreed with the person enabling such a telephone conversation to be conducted,

in advance of making the Call enabling them to engage in the conversation, the respective identities of the other intended participants or the telephone numbers on which they can be called. For the avoidance of any doubt, a service by which one or more additional persons who are known (by name or telephone number) to one or more of the parties conducting an established telephone conversation can be added to that conversation by means of being called by one or more of such parties is not on that account a Chatline Service, if it would not otherwise be regarded as such a service;

(c) "Find-me-anywhere Service" means a service that enables a person to be contacted,whatever the location of that person, where the call charge is not distance dependant, and for which purpose a particular numbering range has been designated for such Find-me-anywhere Services under the National Numbering Conventions, such as Mobile Radio Telecommunication Services, and Radiopaging Services;

(d) "Message Service" means a service which consists of or includes, the sending of speech, music or other sounds or signals to any person or terminal apparatus who or which obtains access to that service by means of the Public Switched Telephone Network;

(e) "Public Switched Telephone Network" means any public telecommunication system which is used to provide switched voice telephony services to the general public;

(f) A "Call" includes a call made by a computer or made automatically by any other terminal apparatus.

22.12 An International Call which terminates on a telecommunication system outside the United Kingdom is not a Controlled Premium Rate Service. For the purposes of this Condition, an "International Call" means the conveyance of any Message by means of the Applicable Systems which has been, or is to be conveyed, by means of any telecommunication system outside the United Kingdom but, for the avoidance of any doubt, an International Call does not include any call terminated on a telecommunication system within the United Kingdom.

22.13 The Licensee shall allocate Numbers to Controlled Premium Rate Services which it provides in accordance with this Condition in accordance with the National Numbering Conventions published by the Director in accordance with paragraph 26.5(a) of this Licence.

Notes:

1. The 'Controlled Services' condition is numbered Condition 22 for those licences having the so-called Standard Schedules (see the Regulations, S.I. 1999 No. 2450), eg BT and other PTOs as well as mobile PTOs.
2. The 'Controlled Services' condition is numbered Condition 26 for both ISVR (of 1 November 2000) and for TSL (of 9 April 2001).

Annex C – Provision of Special Facilities Relating to Chatline and Message Services

Condition [23/27] (see notes three (relating to condition 23) and four (relating to condition 27) below)

23.1 The Licensee shall comply with any direction made under this paragraph which requires the Licensee to make available such of the facilities listed in paragraph 23.2 as are specified in the direction. A direction under this paragraph shall be made by the Director after consultation with the Licensee, and shall specify only facilities which the Director considers it will be technically and economically practicable for the Licensee to provide. The direction shall specify the date by which each facility is to be provided and the class or description of customer (whether described by reference to area or otherwise) to whom it is to be provided and shall be subject to such conditions as the Director thinks fit.

23.2 The facilities referred to in paragraph 23.1 are:

(a) the provision to any customer of the Licensee for voice telephony services who requests it of a bill or invoice showing, by reference to the number used to access the service, and the date and time on which access was obtained, the amount of any charge imposed by the Licensee for a telephone call to any service to which this Condition applies;

(b) the notification to such a customer who requests it, as soon as reasonably practicable, of:

(i) the date on which the total charges accrued within the standard billing period of the Licensee for voice telephony services and any other service to be included in the bill or invoice for such services exceed an amount specified by that customer being an amount, or one of a number of amounts, from time to time specified by the Licensee as being suitable for the purpose; or

(ii) the date on which the aggregate charges accrued in any such period in respect of Chatline Services and Message Services to which this Condition applies exceed an amount determined from time to time by the Director; and

(c) the barring, by means of apparatus forming part of the Applicable Systems, on request by any such customer, of access from any Exchange Line specified by that customer and in respect of which that customer is the customer of the Licensee, to all Chatline Services and Message Services to which this Condition applies.

23.3 The services to which this Condition applies are those Chatline Services and Message Services in respect of which:

(a) the person providing the service obtains the whole or any part of his revenue from the Licensee (or, where that person is the Licensee, that part of the Licensee’s business which provides the Service is credited with revenue from that part of its business which conveys the Messages comprised in, or resulting from the provision of, the Service); and

(b) the person responsible for paying the charges for the telephone calls by means of which the Service is obtained is billed by means of his telephone bill for any amount in respect of the provision of the Service.

23.4 In this Condition, a "Chatline Service" and a "Message Service" have the respective meanings given to those terms in Condition 22.

Notes:

3. The 'Provision of Special Facilities relating to Chatline and Message Services' condition is numbered Condition 23 for those licences having the so-called Standard Schedules (see the Regulations, S.I. 1999 No. 2450), eg BT and other PTOs as well as mobile PTOs.
4. The 'Provision of Special Facilities relating to Chatline and Message Services' condition is numbered Condition 27 for both ISVR (of 1 November 2000) and TSL (of 9 April 2001).

Annex D – Conditions regulating premium rate services: extract from the Communications Bill

117 Conditions regulating premium rate services

(1) Ofcom shall have the power, for the purpose of regulating the provision, content, promotion and marketing of premium rate services, to set conditions under this section that bind the persons to whom they are applied.

(2) Conditions under this section may be applied either –

(a) generally to every person who provides a premium rate service; or

(b) to every person who is of a specified description of such persons, or

who provides a specified description of such services.

(3) The only provision that may be made by conditions under this section is provision requiring the person to whom the condition applies to comply, to the extent required by the condition, with –

(a) directions given in accordance with an approved code by the enforcement authority and for the purpose of enforcing its provisions; and

(b) if there is no such code, the provisions of the order for the time being in force under section 119.

(4) The power to set a condition under this section includes power to modify or revoke the conditions for the time being in force under this section.

(5) Sections 44 and 45 apply to the setting, modification and revocation of a condition under this section as they apply to the setting, modification and revocation of a condition under section 42.

(6) Ofcom must send a copy of every notification published under section 45(1) with respect to a condition under this section to the Secretary of State.

(7) A service is a premium rate service for the purposes of this Chapter if –

(a) it is a service falling within subsection (8);

(b) there is a charge for the provision of the service;

(c) the charge is required to be paid to a person providing an electronic communications service by means of which the service in question is provided; and

(d) that charge is imposed in the form of a charge made by that person for the use of the electronic communications service.

(8) A service falls within this subsection if its provision consists in –

(a) the provision of the contents of communications transmitted by means of an electronic communications network; or

(b) allowing the user of an electronic communications service to make use, by the making of a transmission by means of that service, of a facility made available to the users of the electronic communications service.

(9) For the purposes of this Chapter a person provides a premium rate service ("the relevant service") if –

(a) he provides the contents of the relevant service;

(b) he exercises editorial control over the contents of the relevant service;

(c) he is a person who packages together the contents of the relevant service for the purpose of facilitating its provision;

(d) he makes available a facility comprised in the relevant service; or

(e) he falls within subsection (10) or (11).

(10) A person falls within this subsection if –

(a) he is the provider of an electronic communications service used for the provision of the relevant service; and

(b) under arrangements made with a person who is a provider of the relevant service falling within subsection (9)(a) to (d), he is entitled to retain some or all of the charges received by him in respect of the provision of the relevant service or of the use of his electronic communications service for the purposes of the relevant service.

(11) A person falls within this subsection if –

(a) he is the provider of an electronic communications network used for the provision of the relevant service; and

(b) an agreement relating to the use of the network for the provision of that service subsists between the provider of the network and a person who is a provider of the relevant service falling within subsection (9)(a) to (d).

(12) Where one or more persons are employed or engaged under the direction of another to do any of the things mentioned in subsection (9)(a) to (d), only that other person shall be a provider of the relevant service for the purposes of this Chapter.

(13) References in this section to a facility include, in particular, references to –

(a) a facility for making a payment for goods or services;

(b) a facility for entering a competition or claiming a prize; and

(c) a facility for registering a vote or recording a preference.

(14) In this section –

"approved code" means a code for the time being approved under section 118; and

"enforcement authority", in relation to such a code, means the person who under the code has the function of enforcing it.

118 Approval of code for premium rate services

(1) If it appears to Ofcom –

(a) that a code has been made by any person for regulating the provision and contents of premium rate services, and the facilities made available in the provision of such services;

(b) that the code contains provision for regulating, to such extent (if any) as they think fit, the arrangements made by the providers of premium rate services for promoting and marketing those services; and

(c) that it would be appropriate for them to approve that code for the purposes of section 117, they may approve that code for those purposes.

(2) Ofcom are not to approve a code for those purposes unless they are satisfied –

(a) that there is a person who, under the code, has the function of administering and enforcing it; and

(b) that that person is sufficiently independent of the providers of premium rate services;

(c) that adequate arrangements are in force for funding the activities of that person in relation to the code;

(d) that the provisions of the code are objectively justifiable in relation to the services to which it relates;

(e) that those provisions are not such as to discriminate unduly against particular persons or against a particular description of persons;

(f) that those provisions are proportionate to what they are intended to achieve; and

(g) that, in relation to what those provisions are intended to achieve, they are transparent.

(3) The provision that may be contained in a code and approved under this section includes, in particular, provision about the pricing of premium rate services and provision for the enforcement of the code.

(4) The provision for the enforcement of a code that may be approved under this section includes –

(a) provision for the payment, to a person specified in the code, of a penalty not exceeding the maximum penalty for the time being specified in section 120(2);

(b) provision requiring a provider of a premium rate service to secure that the provision of the service is suspended or otherwise ceases or is restricted in any respect;

(c) provision for the imposition on a person, in respect of a contravention of the code, of a temporary or permanent prohibition or restriction on his working in connection with the provision of premium rate services or, in the case of a body corporate, on its providing such services or on its carrying on other activities in connection with their provision.

(5) Ofcom may, at any time, for the purposes of section 117 –

(a) approve modifications that have been made to an approved code; or

(b) withdraw their approval from an approved code.

(6) Where Ofcom give or withdraw an approval for the purposes of section 117, they must give notification of their approval or of its withdrawal.

(7) The notification must be published in such manner as Ofcom consider appropriate for bringing it to the attention of the persons who, in Ofcom’s opinion, are likely to be affected by the approval or withdrawal.

119 Orders by Ofcom in the absence of a code under s. 118

(1) Ofcom may make an order under this section if, at any time, they consider that there is no code in force to which they think it would be appropriate to give, or to continue to give, their approval under section 118.

(2) An order under this section may make such of the following provisions as Ofcom think fit –

(a) provision imposing requirements with respect to the provision and contents of premium rate services, and with respect to the facilities made available in the provision of such services (including provision about pricing);

(b) provision imposing requirements with respect to the arrangements made by the providers of premium rate services for the promotion and marketing of those services;

(c) provision for the enforcement of requirements imposed by virtue of paragraph (a) or (b);

(d) provision making other arrangements for the purposes of those requirements.

(3) The power to make provision by an order under this section includes, in particular –

(a) power to establish a body corporate with the capacity to make its own rules and to establish its own procedures;

(b) power to determine the jurisdiction of a body established by such an order or, for the purposes of the order, of any other person;

(c) power to confer jurisdiction with respect to any matter on Ofcom themselves;

(d) power to provide for a person on whom jurisdiction is conferred by the arrangements to make awards of compensation, to direct the reimbursement of costs or expenses, or to do both;

(e) power to provide for such a person to enforce, or to participate in the enforcement of, any awards or directions made under such an order;

(f) power to make provision falling within section 118(4)(c) for the enforcement of the provisions of the order; and

(g) power to make such other provision as Ofcom think fit for the enforcement of such awards and directions.

(4) An order under this section may require such providers of premium rate services as may be determined by or unde