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0871 regulation - Pre-consultation (Read 39,201 times)
idb
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0871 regulation - Pre-consultation
Jul 31st, 2006 at 4:42pm
 
ICSTIS, the incompetent and impotent PRS regulator, has today launced a pre-consultation (!!!) relating to 0871 regulation:

Press release: http://www.icstis.org/pdfs_news/0871.pdf

<<
Pricing clarity at the heart of new 0871 regulation proposed by ICSTIS
The phone regulator ICSTIS has today launched a pre-consultation which sets out clearly the need for enhanced consumer understanding about the cost of calling 0871 numbers.

Following the decision by Ofcom in April 2006 for ICSTIS to regulate 0871 numbers from early 2008, ICSTIS is today launching a pre-consultation outlining the issues that will need to be addressed to ensure that consumers continue to have trust and confidence in using 0871 numbers.

ICSTIS’ pre-consultation emphasises the importance of ensuring consumers understand that 0871 numbers can cost up to 10p per minute and may cost more from some mobile phones and other networks. Paul Whiteing, Deputy Director of ICSTIS said: “Consumer trust in 0871 numbers is crucial. If you are calling a company and they may be charging you up to 10p a minute then you need to know this before you call. We will also want to be clear that any delays in handling that call are not deliberate or designed to make money out of the consumer. Our aim is to create a set of regulations that put the consumer at the heart of the regulatory requirements and to do this we will be insisting on absolute clarity and transparency when it comes to telling consumers what calls cost. This will be backed by tough enforcement powers.”

The pre-consultation document has been launched by ICSTIS today. The closing date for comments is Friday 29th September 2006. ICSTIS encourages all companies and consumer bodies with an interest to respond with their views.

NOTES
• 0871 numbers are special numbers on which telephone companies and third party service providers can share the revenue costs of the call (up to 10p per minute).
• Ofcom announced (NTS: A Way Forward – 19 April 2006) that as from early 2008, ICSTIS would take over the regulation of 0871 numbers.
• 0871 numbers are used for a variety of purposes including operating call centres, helplines and booking services.
• ICSTIS is the regulator of premium rate services. Ofcom is extending its powers to regulate 0871 numbers with effect from early 2008. ICSTIS has wide ranging powers for managing breaches of its Code of Practice.  This includes fine powers of up to £250,000.
>>
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« Last Edit: Jul 31st, 2006 at 5:19pm by bbb_uk »  

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Re: 0871 regulation
Reply #1 - Jul 31st, 2006 at 4:43pm
 
Pre-consultation paper:

http://www.icstis.org/pdfs_consult/0871preconsultation.pdf

including the questions:

Q1. We would welcome feedback about the distinctive characteristics of the market for 0871 numbers, including information about the market size, the main types of use for 0871 numbers and views on how this is changing, and is likely to change, as we move towards 2008 and beyond.

Q2. We recognise that a considerable amount of use of 0871 numbers relates to business call centres for customer service and information. Again, we would be interested to hear from those companies and other affected organisations about how the decision by Ofcom to extend regulation of PRS to 0871 may impact on their operations and how any ensuing burden should be minimised without losing sight of the need to ensure an appropriate level of consumer protection.

Q3. We would welcome feedback about the likely consequences of the possible migration to or from 0871 numbers flowing from the changes announced by Ofcom to 0870 revenue share and as a consequence of extending PRS regulation to all 0871 numbers.

Q4. We would welcome feedback about consumer concerns that arise, particularly with the promotion and content of 0871 services, and we would welcome feedback about safeguards that stakeholders believe would be necessary and proportionate for the development of an effective consumer protection regime for 0871 numbers.

Q5. We would welcome thoughts on what approach we should take to formulating a Code of Practice and how far this should be separate from the current ICSTIS Code and, if so, why. Are there additional issues relating to 0871 numbers, not covered in the current Code and distinctive to 0871, that would to also be addressed?

Q6. We would welcome feedback on how we should regulate call centre waiting time issues, recognising that being in a queue for a long time leads to consumer expense as well as generally leading to a perception of poor service. We would particularly welcome the views of trade bodies whose members are active in call centre provision about how best practice could link to our regulatory requirements once agreed.

Q7. We would welcome views on the potential incentives that we could create in order to develop improved performance and consumer service in this area without the need immediately to resort to regulatory sanctions.

Q8. In respect of pricing transparency, we would welcome views on how we move to a situation of compliance in time for early 2008 when we take control of the regulation of 0871 numbers.  Many companies reported to Ofcom that they face long lead times to amend their promotional copy in respect of advertising for 0871 numbers. What action can we take and with whom to ensure that service providers and others in the value chain promoting these numbers fully
understand the need for providing transparency in good time for any regulatory changes which may take place early in 2008?

Q9. Pricing transparency for 0871 numbers will be affected by the fact that many such numbers, especially when used for customer services, are listed in white pages telephone directories where space for the listing is restricted to a company name and number.  There is no provision to provide information relating to the likely cost of the call. How should we consider dealing with issues relating to pricing transparency in this context or in other contexts such as advertising such numbers or radio or television?

Q10. Do stakeholders have any views about our preliminary conclusions on governance arrangements for regulating 0871 numbers?

Q11. We would welcome any thoughts on how far the current funding model, which appears to have operated well for many years, could be adapted to incorporate 0871 number or whether specific alternatives should be considered. If the latter, with what justification?

Q12.  We would welcome stakeholder comments on branding issues and how far, in the context of a re-brand of the core ICSTIS business, stakeholders consider there is a need for public perception reasons, for a separate brand for 0871 numbers.

Q13. We would welcome any comments on this proposed timetable.

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« Last Edit: Jul 31st, 2006 at 5:15pm by bbb_uk »  

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Re: 0871 regulation
Reply #2 - Jul 31st, 2006 at 5:19pm
 
Thanks for this idb.

Although this is just a pre-consultation I'll think we still need to respond otherwise the final consultation may not even include anything that protects us consumers from misuse like prohibiting call queuing like 09x numbers.

I have also made this a sticky for the time being.
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« Last Edit: Jul 31st, 2006 at 5:21pm by bbb_uk »  
 
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0871 Wealth Warning?
Reply #3 - Jul 31st, 2006 at 5:15pm
 
I just sent this off to ICTIS but not holding out for a positive reply but thought it a good idea at the time!

Why not implement a "cost warning" based on the French system of a range different coloured cartouche (s?)

FYI,  I believe the French have Numero Vert for Freephone or Toll Free and Numero Azur for the next range of numbers with possibly Numero Mauve for their 0871 equivalent.

Each cartouche has the minimum cost of the call beneath it whether it by the minute or total cost.

An easy and workable solution that the public would immediately recognise perghaps?


I tried to copy and paste an example imge here but no success, can someone help please?

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« Last Edit: Jul 31st, 2006 at 5:16pm by Victors_Bruvver »  
 
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Re: 0871 regulation - Pre-consultation
Reply #4 - Aug 1st, 2006 at 1:31pm
 
Oh dear no, let's not suggest copying the French system. Numeros verts are free (but not from mobiles) however the rest are effectively premium as many people have "illimité" calls to landlines so pay no attention to "numero azur" local call costs etc as it's the same old garbage as UK's 0845. The whole thing does seem to be brainwashing since people do seem to use those numbers.

The way forward is to follow the US's lead of 800/888/877 etc. Europe does not bode well: NL is bad, Germany is getting bad and the EU is in the lead for an international premium rate country code (efforts to smack roaming charges miss the point of breaking vertical monopolies IMHO).

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Re: 0871 regulation - Pre-consultation
Reply #5 - Aug 1st, 2006 at 2:19pm
 
The "incompetent and impotent PRS regulator" has even managed to give a list of "questions" where most of them are not actually questions at all (even if I'm being a bit pedantic)!

Anyway,  I don't know how to phrase it in terms of answers to those questions, but what should happen is that 0871 should be treated the same as any other premium rate number.

In particular, queueing should not be permitted at all. If companies want to run a helpline and need queueing for genuine reasons, they should use a different type of number. I don't see how anyone can justify charging customers while they are waiting for a service. For example, a solicitor might charge by the hour, and charge a small fortune. Yet you don't pay for the time you're sitting waiting outside his office while he's in with another client. Plumbers also charge a handsome rate, yet even they don't charge you for the whole morning you stayed at home waiting...
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Re: 0871 regulation - Pre-consultation
Reply #6 - Aug 2nd, 2006 at 5:41am
 
What is the point of even thinking about joining in the 'game' of 'consultation'?
We saw what happened to the efforts of all of us who replied to the Ofom 'consultation' - we were simply used as fodder - they only accept the HMV solutions (His Master's Voice, ie telecom companies) and then generalise to say things like 'the majority of respondants want....' and fill in their own answers!
Waste of time and effort, I'm afraid - and our MPs are not really interested - so where do we go??  (put your answers in a bottle and throw into the sea!!).
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Re: 0871 regulation - Pre-consultation
Reply #7 - Aug 2nd, 2006 at 7:31am
 
firestop wrote on Aug 2nd, 2006 at 5:41am:
What is the point of even thinking about joining in the 'game' of 'consultation'?
I agree where you're coming from but at the same time I think we need to mention in this pre-consultation (and probably again in the final consultation) that at the very least:-

1.  Call queuing is prohibited just like 09x numbers.
2.  0871 numbers to be advertised same as 09x numbers (clear and transparent and not put 'national rate' that some companies have been putting)
3.  When call answered we are informed that the call costs 10p/min

I'm not sure what other safeguards, etc exist for 09x numbers but without these three things then we are not protected from the abuse of these numbers.

Companies currently using these numbers are only using them as premium rate numbers but without the safeguards(!), rules, guidelines that having an 09x have.  Plain & simple, they are used to bypass ICSTIS regulation.
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Re: 0871 regulation - Pre-consultation
Reply #8 - Aug 2nd, 2006 at 5:13pm
 
I intend to send in the following:


Re 0871  -  A wolf in sheep's clothing.

Ofcom and Ictis appear not to be able to make clear and effective regulations. Most understand that “09" telephone numbers are expensive premium rate numbers and use them, if at all, with care.  It is reasonablely well known that they are expensive.

But 0871 are different; many do not realise that 0871 cost 10ppm at all times.  Recently I challenged two organisations who use an 0871 for routine communications.  One a retail shop the other a motor insurance broker.  One said 0871 was a free-phone number, the other said it was a national rate call.

Because 0871 is a clandestine premium number, 0871 should be subject to even tighter regulation than a “09"  number, whose character are more readily known.

Full transparence should be the aim. What valid objection could an honest organisation have to making a caller 100% aware of the nature and cost of calling an 0871 number. The following, should be the minimum requirement:

All 0871 numbers should have a short pre recorded message as to the cost per minute and the caller should be able to hang-up without incurring any cost.

The pre recorded message should also advise the caller that part of the cost of the call is received by the organisation receiving the call.

All 0871 numbers should be capable of being blocked by the subscriber.

Charging for queuing should be prohibited..

Even small advertisements,  listings or printed matter, should have “10p a minute” after the number and in the same type size as the number.

A wolf in sheep's clothing is more dangerous than a wolf.
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« Last Edit: Aug 2nd, 2006 at 9:59pm by kk »  

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Re: 0871 regulation - Pre-consultation
Reply #9 - Aug 3rd, 2006 at 3:08pm
 
Further to my above post:  0871 - A wolf in sheep’s clothing.  

I have an old edition of BT’s  “The Phone Book Companion 2002".  Section 3:2 is a “Special codes decoder”

The description for 0871 is:  “0871 for internet services”.  

This specialised number for internet services has been hijacked for voice communication.  Why should Ictis be reluctant to upset the users of 0871, when it is clear that they had no business using that number for voice communication in the first place.

Modified 4 Aug:

I have just noticed the following under special rate numbers:  "There may be a charge for calls beginning with 0844 and 0871"
It is clear that this type of number was not initially envisaged a premium cost number.

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« Last Edit: Aug 4th, 2006 at 6:47am by kk »  

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Re: 0871 regulation - Pre-consultation
Reply #10 - Sep 25th, 2006 at 3:03pm
 
The closing date for this pre-consultation is THIS Friday 29 September 2006.

That means only 5 days left.

As mentioned in an earlier post, at the very least 0871 numbers should have:-

  • Call queuing is prohibited just like 09x numbers.
  • 0871 numbers to be advertised same as 09x numbers (clear and transparent and not put 'national rate' that some companies have been putting)
  • When call answered we are informed that the call costs 10p/min


For more info see ICSTIS page here.
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« Last Edit: Sep 25th, 2006 at 3:11pm by bbb_uk »  
 
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Re: 0871 regulation - Pre-consultation
Reply #11 - Sep 25th, 2006 at 3:30pm
 
I've only scanned the pre-consultation so far but here are my draft responses:-


Q1. We would welcome feedback about the distinctive characteristics of the market for 0871 numbers, including information about the market size, the main types of use for 0871 numbers and views on how this is changing, and is likely to change, as we move towards 2008 and beyond.

n/a

Q2. We recognise that a considerable amount of use of 0871 numbers relates to business call centres for customer service and information. Again, we would be interested to hear from those companies and other affected organisations about how the decision by Ofcom to extend regulation of PRS to 0871 may impact on their operations and how any ensuing burden should be minimised without losing sight of the need to ensure an appropriate level of consumer protection.

n/a

Q3. We would welcome feedback about the likely consequences of the possible migration to or from 0871 numbers flowing from the changes announced by Ofcom to 0870 revenue share and as a consequence of extending PRS regulation to all 0871 numbers.

n/a

Q4. We would welcome feedback about consumer concerns that arise, particularly with the promotion and content of 0871 services, and we would welcome feedback about safeguards that stakeholders believe would be necessary and proportionate for the development of an effective consumer protection regime for 0871 numbers.

The primary use of 0871 numbers is the revenue sharing and the reasons why many companies are using 0871 numbers instead of 09x PRS numbers which were specifically designated for revenue share is to avoid being regulated by yourselves and avoid the safeguards that are incorporated into 09x numbers.  Therefore, a company using 0871 can earn revenue without having to clearly indicate the cost of the call and can keep us in queues longer to earn more revenue knowing that there is nothing us consumers can do.

Q5. We would welcome thoughts on what approach we should take to formulating a Code of Practice and how far this should be separate from the current ICSTIS Code and, if so, why. Are there additional issues relating to 0871 numbers, not covered in the current Code and distinctive to 0871, that would to also be addressed?

n/a

Q6. We would welcome feedback on how we should regulate call centre waiting time issues, recognising that being in a queue for a long time leads to consumer expense as well as generally leading to a perception of poor service. We would particularly welcome the views of trade bodies whose members are active in call centre provision about how best practice could link to our regulatory requirements once agreed.

As mentioned in my response to Q4, 0871 numbers are used specifically to avoid the safeguards offered to end consumers via existing 09x numbers.  The main one is waiting times where it can be known to spend over 30minutes in a queue on 0871 numbers whereas on an existing 09x number us consumers wouldn't get charged until we speak to an operator therefore queuing for 30minutes is at the expense of the company concerned and not us consumers.  This is why introducing a requirement to prevent us consumers being charged for the call until answered (like existing 09x numbers) is the safest and best way to ensure protection for us consumers.

Q7. We would welcome views on the potential incentives that we could create in order to develop improved performance and consumer service in this area without the need immediately to resort to regulatory sanctions.

n/a

Q8. In respect of pricing transparency, we would welcome views on how we move to a situation of compliance in time for early 2008 when we take control of the regulation of 0871 numbers.  Many companies reported to Ofcom that they face long lead times to amend their promotional copy in respect of advertising for 0871 numbers. What action can we take and with whom to ensure that service providers and others in the value chain promoting these numbers fully understand the need for providing transparency in good time for any regulatory changes which may take place early in 2008?

0871 numbers should be advertised in similar formats as existing 09x numbers - along the lines, "Calls cost 10p/min from BT landline.  Calls from other networks and mobiles may vary."

This is specifically important because 0871 (like 0870) are known to many consumers as 'national rate' and even some TV adverts recently advertised an 0871 number as a 'national rate'.  This is obviously misleading but the problem gets worse because mobile network that currently charge upto 40p/min for these calls all because in most cases the consumer would not be aware of the cost of this number and assume its just 'national rate' so therefore around the same price as a geographical call.

The obvious difference between 0871 and 09x numbers when it comes to making calls from mobiles is that most (if not all) consumers are aware that premium rate numbers begin with 09x and will cost more from a mobile.  This is not true for 0871 where many consumers would think that it costs the same as a national rate call.

Due to this, I believe it may be necessary (and it would improve price transparency) to have the operator when they answer the call state something along the lines of, "This call costs 10p/min from a BT landline.  Calls from mobiles cost more."

Continued...
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« Last Edit: Sep 25th, 2006 at 3:35pm by bbb_uk »  
 
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Re: 0871 regulation - Pre-consultation
Reply #12 - Sep 25th, 2006 at 3:32pm
 
... Continued

Q9. Pricing transparency for 0871 numbers will be affected by the fact that many such numbers, especially when used for customer services, are listed in white pages telephone directories where space for the listing is restricted to a company name and number.  There is no provision to provide information relating to the likely cost of the call. How should we consider dealing with issues relating to pricing transparency in this context or in other contexts such as advertising such numbers or radio or television?

What difference is there between following the same guidelines/regulations for price transparancy on 0871 numbers like there is on 09x numbers?  For example, if a company using a premium rate number advertises in the yellow pages then they would have to state the cost of the call.  Similar thing for radio, where quizes/phone-ins, etc that use 09x numbers all state the cost of the call from a BT landline.  So therefore it is possible for companies to do the same and follow the code of practice on call transparency for their 0871 like they would have to for 09x numbers.

I can't see the logic behind saying that just because a company chooses to use a revenue generating 0871 doesn't have to mention the cost of the call but they do if they were to choose an 09x number.  What's the difference apart from the cost of the call?

Q10. Do stakeholders have any views about our preliminary conclusions on governance arrangements for regulating 0871 numbers?

n/a

Q11. We would welcome any thoughts on how far the current funding model, which appears to have operated well for many years, could be adapted to incorporate 0871 number or whether specific alternatives should be considered. If the latter, with what justification?

Maybe an annual or quarterly fee should be charged instead of the current method of taking a cut of the call per minute.

Q12.  We would welcome stakeholder comments on branding issues and how far, in the context of a re-brand of the core ICSTIS business, stakeholders consider there is a need for public perception reasons, for a separate brand for 0871 numbers.

n/a

Q13. We would welcome any comments on this proposed timetable.

n/a


IN SUMMARY

You already state in your pre-consultation that you received over 23,000 number checks on 0871 alone in the period of Oct '05 to May '06 (8 months) and over 800 phone calls.  Therefore you should already be aware of lack of consumer awareness of these numbers and the detriment they are causing by basically being a premium rate number without ANY safeguards whatsoever.

Personally, given a choice of ringing a company on a premium rate 09x number costing 10p/min and ringing them on a 0871 number costing the same then I'd ring the 09x number.  Simply because I know that I wouldn't be charged for being kept in their queue thus saving me what initially can be fortune.

I believe in most cases the amount of time spent on the telephone to companies using 0871 (and 0870) is being held in a queue.  In my experience most phone calls, once answered, are over in a few minutes.  Emailing companies these days either results in no reply whatsoever or them not reading my emails correctly and replying back with something that isn't related to or answer what my original query was.  This just isn't true for me and many people I know agree.

At the very least 0871 numbers should have:-

  • Call queuing is prohibited just like 09x numbers.
  • 0871 numbers to be advertised same as 09x numbers (clear and transparent and not put 'national rate' that some companies have been putting)
  • When call answered we are informed that the call costs 10p/min


Anything less then there will be no different than how they work now where companies call queuing is allowed and the cost of the call isn't published (in most cases).


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« Last Edit: Sep 25th, 2006 at 3:38pm by bbb_uk »  
 
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Re: 0871 regulation - Pre-consultation
Reply #13 - Sep 25th, 2006 at 6:09pm
 
Hi bbb

Read you comments and would go along with - as that is what the Law requires.  My concern is that 0871 is in the same steps as 0845 and 0870. OFCOM who has done nothing with 0845/0870 also tells  ICSTICS what role to play.

1. Cost of any call costing more than a normal call is termed as a Perium rate number, thus the Cost of that call should be clearly disclosed before hand. The should be free Business to Consumer annoucement to the cost of the call - which OFCOM has failed on.

2. Failure to disclose or mislead the consumer that it is a cost of normal call should cost a fine and stop the use of the number. It is also against Eu Legislation.

3. It is distrubing that all adverts advertisnig 0871 or 0845 or 0870 are saying to businesses use these numbers as "you can generate income from incoming calls".  It is my view that this is Unfair Consumer Practice

4. No real reason can be give for having 0871 number as with 0845 or 0870, as the same operation can be carried out by normal numbers, eg, diverting, etc - there is 3 clear facts -
(a)  that the only reason that there is the 0871 is to generate money from consumers to profit from, for the business  and      
(b) That if a message was given of the land line - be it in India or the UK it would be still cheaper for the consumer to call directly, then to be diverted by a 0871 or 0845/0870 number.
(c) Tiny Computers showed the abuse by the Businesses in keeping customers hanging on these numbers for an hour at a time 60 min x 10p = £6.00 per hour - at the consumers expense.

I spoke to my MEP today to pursue this matter to the EU Commissioner to investigate the failure to have transparent price information -eg free Business to Consumer price announcement and even to state the price of the call and the Anti Consumer/Unfair Consumer Practice the the only reason to have these number is to generate money from consumers. I  trust yourselves will do the same

Bobby

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« Last Edit: Sep 25th, 2006 at 6:24pm by Bobbyboy »  
 
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Re: 0871 regulation - Pre-consultation
Reply #14 - Sep 26th, 2006 at 11:05am
 
Ok, I've read more of the pre-consultation now and something I noticed is a worrying:-

Quote:
Paragraphs 4.167 to 4.185 of the NTS Statement outline Ofcom’s responses to consultees’ comments about extending PRS regulation to 0871 numbers. Arising from these responses were issues relating to the suitability of the current Code of Practice for the regulation of the types of services being provided on 0871 numbers. This was particularly with regard to issues about the suitability of the Code to cover customer service functions which operate on 0871 numbers. Related to this was a concern from some respondents about disproportionate regulation of call centre waiting times should the “undue delay” provisions in the current ICSTIS Code of Practice be adopted in a rigid way with no proper regard to call queuing issues that arise in call centre environments.  We, like Ofcom, observe that any provisions by us in this area will be the subject of consultation and a balance may need to be struck between ensuring consumers do not suffer unreasonable financial detriment resulting from call queuing with the need to provide a call centre operation where it needs to be recognised that consumer calling patterns are not always even and accurately predicted.

Separately we need to address the issue of how far services which contain a live voice element, which may be the great majority, would require separate permission from ICSTIS to operate, as we currently require for live voice services in the 09 area today as well as a requirement, linked to this, to give pricing information on connection to consumers. Our initial thoughts are that prior permission for all services should be targeted on those services which are considered to have the characteristics which could generate consumer harm or vulnerability. In this context our initial thinking is that most 0871 live services will not fall within that category unless they are providing some form of entertainment or service which may make users particularly vulnerable or place them at risk, such as live chat services or counselling/ medical advice lines.
This reads to me like ICSTIS don't really want to prohibit call queuing at the expense of us consumers because of the cost involved to companies that want to use revenue-generating 0871 numbers.

This as well:
Quote:
Our initial thoughts are that prior permission for all services should be targeted on those services which are considered to have the characteristics which could generate consumer harm or vulnerability. In this context our initial thinking is that most 0871 live services will not fall within that category unless they are providing some form of entertainment or service which may make users particularly vulnerable or place them at risk, such as live chat services or counselling/ medical advice lines.
ICSTIS are basically saying here that the most consumer detriment will be 0871 numbers used by live chat service (I assume adult stuff) or counselling/medical advice lines.

This, I believe, is wrong because these services are very few and far between especially operating on 0871 numbers.  Ofcom announced that 'adult' services have to use 09x numbers which means that maybe adult customer services call centres may still use 0871 so therefore 0871 isn't being used for any 'adult' chat services like ICSTIS would have us believe but they may use 0871 for customer services enquiries (where appropriate) which this would fall under call centre usage of 0871 numbers like the vast majority of 0871 numbers.

It sounds to me like ICSTIS want to try and say that the worse use of these numbers is chat services, etc and not general customer service call centres so they will apply stricter regulation on these, practically non-existent usage, rather than the main use of this number range which is obviously call centre related.

Basically, those using 0871 for live chat services (????) will be subject to tighter regulation like possible call queuing but general usage of 0871 for call centres like customer services, technical support, etc isn't considered detrimental so call centres wont be subject to these tighter regulations that exist for all 09x numbers.
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