There has been a further development, indicating that a further statement and consultation by Ofcom is imminent. It also provides a valuable clue as to what the consultation is going to include.
PhonePay Plus has issued a Call for inputs around the extension of PhonepayPlus regulation to remaining revenue-sharing ranges.
N.B. Readers of this document should note that
references to 087x exclude 0870, and that the term 08xx often means only 084x[/b] - there is no intention to include 080x within the definition of PRS!
This covers
one of the possible ways that Ofcom could use to achieve enforcement of the requirement for Service Providers to state the level of "Service Charge" involved in a call to their 084 number, as part of the unbundled approach. This will be addressed by Ofcom in the
second of its forthcoming consultations, as I highlighted above -
SilentCallsVictim wrote on Dec 8
th, 2011 at 7:52pm:
Quote:... 5.11 ... We will be publishing a detailed proposal for regulation in early 2012 and will take forward this work into the next financial year, subject to consultation.
5.12 Alongside a new approach to the regulation of non-geographic calls, we also intend to consult during 2012/13 on a specific set of regulatory rules for non-geographic calls. We will work with industry to implement these rules as quickly as reasonably possible, so that consumers can benefit from a simpler, clearer regime.
The first of these will address the (potential) implementation of the unbundled approach by direct regulation on telecoms providers, using clear powers available to Ofcom. The second will cover users of non-geographic numbers, especially those using 084 numbers, who are not currently within the scope of Ofcom regulation.
Members may have different views on whether it is appropriate for Ofcom to classify 084 numbers as being used for "Premium Rate Services". It is only by their inclusion within the definition of providers of "Premium Rate Services" that Ofcom itself, through its agent PhonePay Plus, may regulate
users of telecoms services.
(Moderators may think it appropriate for discussion of this specific issue to be the subject of a separate thread. This may depend on how many members wish to contribute their views on this particular topic.)
Given that alternative, more effective ways of achieving the desired result may be used, I do not advocate this approach for 084, or indeed 087, users.
The proper nature of PP+ is as the
self-regulator of those who earn revenue from expensive telephone numbers, rather than those who simply use them to offset the costs incurred in providing services. In the "call for inputs", PP+ acknowledges this important difference, and the fact that 084 and 087 users fall into the second of these categories. It claims however that the experience of having had its remit (improperly) extended to cover 087x numbers has been more successful than expected.
I take issue with the basis on which this determination is made and do not believe that there is any reason why equal "success" would be experienced if it were extended to apply to 084x numbers. PP+ is quite entitled to view the provision of paid-for services by telephone as a market and to look on that "market" in isolation from other markets. In the case of 087 and 084 numbers however, callers are not paying-for but simply subsidising the cost of providing the service as part of a much wider relationship with the person called. PP+,
quite rightly has no interest in this full relationship and the impact of a charge for telephone access as part of it.
PP+ also indicates a possible degree of reluctance to get involved with 0845 numbers, even though the latest published Ofcom proposals cover these as well as 0844/3. The tiny nature of the revenue share, along with the relatively vast number of users / uses would make the current funding structure of PP+ inappropriate. The probability of mass migration from the 0845 range once unbundled charging and proper Service Charge declaration would make it very difficult for PP+ to plan in the way that is necessary for its charge determination to be made. This would upset all of the operations of PP+.
I hope that other respondents to the "call for inputs" will join me in highlighting these points as reasons why PhonePay Plus should not be involved in the regulation of users of 084 and 087 numbers.
On purely pragmatic grounds however, I acknowledge that compliance with cost declaration requirements for 087x numbers is not so poor as some may have expected, and I am not sure that a strong case could be made for removing 087x from the scope of PRS.
I would be delighted to hear the arguments that may be set against my views, as I am very ready to change my position.
There are further clues about Ofcom's intentions which are found in the PP+ document. I cover them below.