Investigation into Xtra Phones UK Ltd's compliance with the General Conditions and potential misuse of networks and services under Section 128 of the Communications Act 2003

Ofcom has today opened an investigation into Xtra Phones, which operates under the trading name Compare The Networks. The investigation concerns Xtra Phones’ compliance with its obligations under the General Conditions of Entitlement (GCs) and whether it has persistently misused an electronic communications network or services.

We have concerns as to whether Xtra Phones has failed to comply with its obligations under the GCs, specifically:

GC B1.2 which states: “A Communications Provider shall not Adopt Telephone Numbers from Part A of the National Telephone Numbering Plan unless:

a) the Telephone Numbers have been Allocated to the Communications Provider; or

b) subject to General Condition B1.5A, the Communications Provider has been authorised (either directly or indirectly) to Adopt those Telephone Numbers by the person Allocated those Telephone Numbers.”;

GC B1.8 which states: “The Communications Provider shall take all reasonably practicable steps to secure that its Customers, in using Telephone Numbers, comply (where applicable) with the provisions of this Condition, the provisions of the National Telephone Numbering Plan and the Non-provider Numbering Condition.”;

GC B1.9(a) which states: “The Communications Provider shall not transfer use of Telephone Numbers from the National Telephone Numbering Plan unless … the Telephone Numbers have been Allocated to the Communications Provider; or the Communications Provider has been authorised (either directly or indirectly) to Adopt those Telephone Numbers by the person Allocated those Telephone Numbers”;

GC B1.9(c) which states: “The Communications Provider shall not transfer use of Telephone Numbers from the National Telephone Numbering Plan unless … the Telephone Numbers are Adopted or otherwise used effectively and efficiently.” and

GC C6.4(a) which states: “When providing Calling Line Identification Facilities, Regulated Providers must ensure, so far as technically feasible, that any CLI Data provided with and/or associated with a call includes a valid, dialable Telephone Number which uniquely identifies the caller;”.

We also have concerns as to whether Xtra Phones has persistently misused an electronic communications network or services. Under section 128(5) – (7) of the Act, a person misuses an electronic communications network or service if—

“a) the effect or likely effect of his use of the network or service is to cause another person unnecessarily to suffer annoyance, inconvenience or anxiety; or

b) he uses the network or service to engage in conduct the effect or likely effect of which is to cause another person unnecessarily to suffer annoyance, inconvenience or anxiety.”

Misuse can be considered “persistent” where it is repeated enough for it to be clear that it represents a pattern of behaviour or practice, or recklessness about whether others suffer annoyance, inconvenience or anxiety.

This investigation will seek to establish the facts surrounding this matter and examine whether there are reasonable grounds to believe that Xtra Phones has failed to comply with the above GCs and whether it has persistently misused an electronic communications network or services.

We will gather further information and publish an update to our investigation in due course.