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Communications Bill: implementation of PRS Gavin Daykin 15 May 2003.

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Presentation on theme: "Communications Bill: implementation of PRS Gavin Daykin 15 May 2003."— Presentation transcript:

1 Communications Bill: implementation of PRS Gavin Daykin 15 May 2003

2 Premium Rate Services Services offering information and entertainment via telephone, fax, PC, mobile or interactive TV; Paid for via the telephone bill; Vary in cost, typically between 10 pence per call and £1.50 per minute; Revenue-sharing.

3 Oftel’s objectives Thriving, innovative premium rate sector; Adequate protection for consumers; Scope and level of regulation is the minimum necessary to obtain appropriate outcomes.

4 Need for consumer protection High cost calls - running up bills quickly; Unauthorised use of the service; Access to content; Potential abuse by service providers.

5 Current regulatory regime Self- and co-regulatory approach, with primary role of consumer protection falling to ICSTIS; Oftel provides statutory support - essentially backstop powers underpinning the ICSTIS regime for all services that meet the definition of CPRS; Oftel’s powers only relate to telecoms companies (i.e. licensees); ICSTIS regulates service providers through its code of practice.

6 The new regulatory framework (i) Telecoms licensing regime will disappear and providers of ECN/ECS will no longer be required to obtain a licence before operating a system or providing a service; The basis for the current PRS regulatory regime will therefore be removed, and a new basis will be required to enable the effective co-regulation of PRS in the UK to continue.

7 The new regulatory framework (ii) PRS to be regulated through provisions in the Communications Bill (cl.117-121) –excluded from the definition of ECS and therefore cannot be directly regulated by way of general conditions; –These provisions provide Ofcom with the power to set conditions for the purpose of regulating the “provision, content, promotion and marketing” of PRS.

8 Conditions regulating PRS (i) Conditions can only require compliance with directions given in accordance with: –an approved code by the enforcement authority and for the purpose of enforcing its provisions; –if there is no such code, the provisions of the order made by Ofcom Conditions to be applied either: –generally to every person who provides a PRS; –to every person who is of a specified description of such persons, or who provides a specified description of such services.

9 Conditions regulating PRS (ii) Oftel will shortly consult on these conditions - the proposal will be that the conditions should only be applied to: –providers of Electronic Communications Networks and Services; –Controlled Premium Rate Services. Comments sought during consultation on: –the terms of the specified conditions; –the specified description of such persons or services upon which conditions will be imposed;

10 Implications of new regime How the regime should work: –the condition imposed by Ofcom is to comply with a direction by the co-regulatory body; –the co-regulatory body supervises PRS through provisions and enforcement measures contained in an approved code; –where the co-regulatory body fails to secure compliance, it will direct the provider of the ECN/ECS to cease provision of the service/withhold funds, etc... –If this direction is breached so is the condition imposed by Ofcom.

11 And finally….. Any questions?


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