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Premium rate services (PRS)

Premium rate services (PRS)

Premium rate services are a form of micro-payment for paid for content, data services and value added services that are subsequently charged to your telephone bill.

The premium rate industry in the UK is estimated to be worth in the region of £1billion per annum, and incorporates a diverse and growing number of services. Approximately 40,000 services are in operation at any one time. These include:

Increasing convergence, particularly between telecoms and broadcasting, is resulting in significant innovation in PRS, including subscription media services on mobile, interactive gaming on TV and even whole TV channels based around premium rate calling. PRS can also be accessed by fax and on a PC. There are also significant business applications for PRS.

Ofcom has overall responsibility for regulating premium rate services. PhonepayPlus is the agency appointed by Ofcom to carry out the day-to-day operations.

The role of Ofcom

Ofcom has responsibility and accountability for the regulation of premium rate services under the terms of the Communications Act 2003. Ofcom recognises PhonepayPlus as its agency, designated to deliver the day-to-day regulation of the market, by approving the PhonepayPlus Code of Practice. Regulatory strategy, scope and policy are developed in dialogue with PhonepayPlus, but final decisions will rest with Ofcom.

The relationship between Ofcom and PhonepayPlus is set out in a Formal Framework Agreement, which is available here.

The current version of the PRS Condition which regulates PRS is available here.

The Memorandum of Understanding between Ofcom and PhonepayPlus is being reviewed in light of the new Formal Framework Agreement. The current version is available here

The role of PhonepayPlus

PhonepayPlus (formerly ICSTIS) regulates the content, promotion and overall operation of all premium rate services through its Code of Practice. Its role is to prevent consumer harm, by requiring clear and accurate pricing information, honest advertising, and appropriate and targeted promotions.

The PhonepayPlus Code of Practice stipulates that consumers must receive:

It investigates all complaints received about premium rate services. When it decides that a breach of its Code has occurred, the company running that service must immediately amend the service and/or its promotional material so that it complies with the Code. In addition, PhonepayPlus has the power to impose sanctions on companies running the services. These sanctions range from:

For further information about PhonepayPlus, including the Code of Practice (Eleventh Edition), please go to their website at www.phonepayplus.org.uk.

If you want to check a premium rate number on your bill, you can use the number checking facility on the PhonepayPlus website. As well as identifying the premium rate service, the facility will let you know whether it is under investigation for any reason and of any action PhonepayPlus is taking.

You can make a formal complaint by:

It helps an investigation if the promotional material for the service, together with any other relevant details, is provided.

The PhonepayPlus Code of Practice (Eleventh Edition) is available here.

Review of scope of regulation for premium rate services

In light of increasing convergence in the communications sector and the growth of premium rate services (PRS) as a way to make payment for goods and/or services, Ofcom considers that the time is right for a first principles examination of the role, structure and application of regulation in this area. Ofcom has therefore committed to undertaking a review of the scope of PRS regulation.

The terms of reference for the review are available here.

Amendments to the PhonepayPlus Code of Practice (11 th Edition)

Ofcom is consulting on proposed amendments to the PhonepayPlus Code of Practice (11 th Edition). The changes will allow PhonepayPlus to institute new governance arrangements, including a smaller strategic Board and a separate Code Compliance Panel. The consultation can be found here and closes on 16 January 2008.

Inquiry into television broadcasters' use of premium rate telephone services

Information on Ofcom’s recent inquiry into the use of PRS on television can be found here.

Future regulation of participation television

Information on Ofcom’s proposals to strengthen viewer and consumer protection for participation television can be found here.

Conditions regulating Sexual Entertainment Services

Information on specific regulatory rules relating to Sexual Entertainment Services is available here.

Numbering policy

Information on how Communications Providers can apply for PRS Telephone Numbers from the National Numbering Scheme is available here.

Number Availability: Supplying numbers for 09 premium rate services

Ofcom has made it possible for telecoms operators to apply for newly available numbers within the 09 premium rate services range. Further information can be found here.

Consumer protection test for telephone numbering

Information on Ofcom’s proposed consumer protection test for allocating telephone numbers, including PRS numbers, can be found here.

Communication Service Providers Memorandum of Understanding for Consumer Harm on PRS or High Toll Services

A Memorandum of Understanding agreed between leading telecommunications providers aimed at stopping abuse of premium rate services through better information sharing and traffic monitoring is available here and the process diagram here.

The Regulation of Premium Rate Services: 2004 Review

Ofcom carried out a review of the regulation of premium rate services (PRS) in the UK at the request of the Department of Trade and Industry (DTI), between August and November 2004. The findings of the review can be found here.



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