The slowdown, which takes the form of an emergency amendment to the ICSTIS Code of Practice, will come into effect on 15th September.
The amendment requires phone networks not to make payments to their premium rate service providers for at least 30 calendar days after calls have been made. This will give ICSTIS time to identify breaches of its Code and, where appropriate, order phone networks to withhold all payments pending the outcome of investigations.
The change is being introduced on an emergency basis to stamp out the consumer harm that can be caused by rogue service providers.
Some networks have been releasing monies to service providers every few days or on a weekly basis for calls made to their services. Such a payment structure enables service providers that have set up or are running an operation in serious breach of the Code, to receive most, if not all, of their revenues for such services and then, at worst, simply disappear.
Commenting on the amendment, ICSTIS Director George Kidd said:
“The introduction of a 30-day payment requirement is great news for consumers. Our action removes a major incentive for rogue service providers – namely getting their hands on the money as quickly as possible. This amendment brings back some common sense in ensuring that networks pay service providers on roughly the same terms as they themselves are paid.”
ICSTIS and Ofcom have also separately published details of a new Memorandum of Understanding between the two organisations. This sets out the clear division of responsibility between ICSTIS and Ofcom.
Both the Memorandum of Understanding and the emergency amendment fulfill key recommendations in last year’s Ofcom Review of the Regulation of Premium Rate Services. The Review, conducted by Ofcom with ICSTIS, was carried out at the Department of Trade and Industry's request, and secured Ministerial approval in December 2004.