Tuesday 13 November 2007

PHONEPAYPLUS TO APPLY CODE OF PRACTICE TO 0871 NUMBERS

PhonepayPlus, the phone-paid services regulator (formerly ICSTIS), has today published a
Statement of Application for the regulation of 0871 numbers. The Statement explains how
PhonepayPlus proposes to apply the existing requirements of its Code of Practice to services
offered on 0871 numbers. The regulator’s proposals will boost consumer confidence in using
0871 numbers by setting clear rules governing price transparency.

0871 numbers are used for a range of services from financial services, ticket bookings, road traffic
advice and customer service facilities. Callers are generally charged between five and 10 pence per
minute (ppm) to call a number beginning with 0871, although some networks, including mobiles,
charge more. In April 2006, Ofcom announced measures to improve price transparency and strengthen consumer protection for calls to chargeable 08 number ranges. As part of this, it proposed to extend PhonepayPlus’ remit to include calls made to 0871 numbers.

Please see www.phonepayplus.org.uk/latest_news/default.asp for full details of the Statement of
Application. In summary, PhonepayPlus’ proposals include:
• Clear pricing (5.7 of the Code) Consumers must be better informed of the price of a call
prior to incurring any charge.
• Delay/call queuing (5.4.2) Consumers should be provided with information regarding
their expected wait times to allow them to decide whether to continue to hold or not,
especially during peak busy periods.
• Fairness (5.4.1) Promotions or services must not mislead or take unfair advantage of consumers.
• Redress (8.7.2) Consumers will be able to complain to PhonepayPlus – non-compliant
providers will be brought to account where there is evidence of wrongdoing. Should a provider be found in breach of its Code, PhonepayPlus has the power to issue formal reprimands, impose fines and even shut down the provider’s operations.

Following today’s publication of PhonepayPlus’ Statement of Application, Ofcom will conduct an
independent consultation on the extension of PhonepayPlus’ remit to include the 0871 number range.

Changes are likely to take effect in the spring of 2008. The regulators then intend to give providers a three-month period to prepare for implementation of the new regulations for 0871 services. During this period and beyond, PhonepayPlus will work closely with service providers and others to ensure a smooth transition to the new regulatory regime.

PhonepayPlus believes its proposed regulations will benefit the industry as a whole by:
• boosting consumer confidence in using 0871 numbers,
• providing greater clarity for operators of 0871 numbers,
• protecting consumers by allowing them to make an informed choice by knowing in advance
what they will pay if they call an 0871 number,
• preventing unscrupulous operations, so protecting legitimate providers from consumer mistrust.
In announcing the proposed Statement of Application, Paul Whiteing, Director of Policy and Innovation at PhonepayPlus, said: “We must continue to develop public trust in phone-paid services. We are confident that we can build on our success in regulating the phone-paid services industry and establish a regulatory framework that is of benefit to both consumers and the industry.”

Please see www.phonepayplus.org.uk for further information.