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Delays to 0870 & 0871 regulatory changes

Date: 26th November 2007

 

Summary:
1) With regard to 0870, Ofcom intended that calls to 0870 would have to be charged at national rate from February 2008 unless a pre-call announcement was provided.  Revenue sharing was also to be prohibited.  Ofcom still has to consult on the detailed changes needed to implement these controls and the consultation is now being delayed due to an issue concerning the safety of pre-call announcements.  They have found that pre-call announcements can cause calls to fail to certain types of services due to post-dial delay and are concerned that where security and emergency services are offered on 0870 this will cause problems.  They are investigating and will cover the issues when they publish the consultation.
2) 0871 was to be regulated as a premium rate service by PhonePayPlus (previously ICSTIS) from February 2008.  However, because of delays in finalising exactly how PPP will apply its Code of Practice to 0871 it is now unlikely the Code will apply until summer 2008.  PPP is to issue a statement setting out its final proposals next week and then Ofcom has to consult on approving PPP's proposed application of the Code.  Ofcom suggested today that once they have done so there will then be a further 3 month period to allow networks operators and SPs do what they need to ensure compliance. 
 
Even if everything is done as quickly as they can manage I would not envisage changes becoming effective before March at the earliest. An announcement from Ofcom is expected in Spring 2008.
 
This will be frustrating and confusing for customers.  But it is a win in that we will be able to take advantage of the current regime for that bit longer and customers have a little more time to consider their options. 
How this effects your customers:
0870 customers will continue to receive revenue share from incoming traffic until the time that the changes come into effect. As a reminder, when they do, this will cease and they will instead receive call charges for the same traffic (c. 1.5ppm) to cover the increased termination charges.
0871 customers will have new obligations to comply with when the number range moves to PhonePayPlus (ICSTIS) to be regulated. i.e. caller charges will need to be communicated by the service provider if the cost of the call exceeds 50p. The full statement of obligation for service providers (i.e your customers) can be found at: www.phonepayplus.org.uk/news/consultation_papers/statementsfollowing.asp

 

 

 

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