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New regulations for 0870 and 0871 numbers
25 July 2008
Changes to the regulations that control the way in which 0870 and 0871 numbers are used are due to be published by PhonePayPlus (the Premium Rate Service Regulator formerly know as ICSTIS) in August 2008.
Ofcom's changes in regulation affecting the cost of calling 0870 numbers were originally due to have taken place on 1 February 2008, but have been delayed while Ofcom carries out further consultations.
On 2nd May 2008, Ofcom published these two further consultations on 0870 and 0871 numbers. The first on changes to 0870 numbers to provide clarity on the cost of calling these numbers and the second on proposals to improve consumer protection for calls to 0871 numbers by bringing these within the remit of the premium rate services regulator PhonepayPlus. The consultation period closed on 16th June 2008.
Ofcom's key objectives remain to restore the link between 0870 call charges and national geographic call charges applied to calls to geographic numbers - numbers beginning 01 and 02; and to also remove the incentive for revenue share - payments to businesses (and organisations) receiving 0870 calls.
However, where communications providers wish to charge more for 0870 calls than for geographic calls, Ofcom no longer propose the use of price announcements at the start of the call; although such communications providers would be subject to new requirements to display their 0870 charges prominently on price lists and advertising/promotional materials.
0870 - once Ofcom have reviewed the responses to the 0870 consultation, they will publish a statement specifying their conclusions. The new rules are expected to take effect from the end of the third month following publication of the statement confirming the changes.
0871 - once Ofcom have reviewed the responses to the 0871 consultation, Ofcom hope to publish their Policy Statement in August 2008, then allow three months for preparation for implementation, with PhonepayPlus fully regulating from November 2008.
Ofcom have chosen to bring 0871 within the remit of PhonepayPlus, the Premium Rate Services Regulator. This means that businesses and organisations using 0871 (and 0872, 0873) revenue share numbers will have to comply with PhonepayPlus Code of Practice and its associated Statement of Application.
Once Ofcom have reviewed the responses to the 0871 consultation, Ofcom hope to publish their Policy Statement in August 2008, then allow three months for communications providers, Service Providers and businesses/organisations to prepare for implementation, with PhonepayPlus fully regulating from November 2008.
Key points are as follows:
- Call prices must be made explicit to callers.
- Businesses/organisations will be required to register as a Service Provider with PPP.
- Adherence to the Code of Practice is mandatory.
- 0871/2/3 will be exempt from the prior permission requirement for counselling, consumer credit and business conferencing services, but Service Providers are advised to check with PPP.
- Businesses/organisations may use 0871/2/3 numbers for complaint handling, but such call charges must be refunded to the caller.
- CPs offering 0871/2/3 numbers to Service Providers will be required to retain revenue share call payments for a minimum of 30 days. This time delay enables PPP to instruct payments to be withheld if they identify potential breaches of the Code.