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Premium rate phone companies will have to register, says regulator


Premium rate phone line operators will have to register with the industry's watchdog under new plans published by the regulator, PhonepayPlus (PPP).

The scheme was suggested by overall telecoms regulator Ofcom, which delegates the regulation of premium rate lines to PPP, as part of a new code of practice for the industry.

The registration scheme will allow PPP to identify and deal with companies that break its rules, will allow potential business partners to assess the merits of other companies, and will enable consumers to identify rogue operators and the numbers they use, PPP said.

PPP will consult on the plan later in spring, and proposes that a registration number be a requirement for a company to conclude a contract with any other premium rate firm.

"Without a registration number (provided when all mandatory information has been submitted) a company will not be allowed to contract with other providers and so will not have access to the market," it said.

In an update to companies in the sector, PPP said that it might choose to allow certain kinds of operators to continue without registering in its scheme, though.

"A particular market segment may be considered for exclusion where it generates far fewer complaints than the industry average; where very few sanctions have been imposed against services; and where consumers have had little cause to check service numbers," it said.

The regulator also said that while it would hold the information required for registration, it would not check its accuracy.

"Information provided to the scheme will not be verified by PhonepayPlus. Instead, it is the responsibility of the registrant to ensure that all information is accurate and up-to-date. If it transpires that certain data is not, the provider is likely to be found in breach of the Code and face stiff sanctions," it said.

PPP said that it is conducting a six week consultation process on its plans for implementing the scheme. It said the benefits of it were clear.

"Providers will find it easier to carry out due diligence on their partners; consumers will be able to quickly find answers to questions about a service they have used or seen advertised; and because we will link our adjudications to businesses and their directors, rogue providers – the handful of individuals and businesses that sometimes give our industry a bad name – should have nowhere to hide," said PPP chairman Sir Alistair Graham.

The idea for the registration scheme grew out of PPP's existing system which allows consumers to check which company is behind which phone number. Ofcom requested that PPP expand that scheme.

"Some 75,000 checks are made every month, offering many consumers peace of mind about a number on their bill or putting them through to the company that can help provide redress should there be a problem," said PPP's update. "For that reason, Ofcom recommended in the scope review that PhonepayPlus expand the Number Checker so that it helps with enquiries about almost all premium rate numbers."

"To meet the challenges identified above, Ofcom recommended that PhonepayPlus introduce a mandatory registration scheme for all providers," it said.

PPP has asked respondents to its consultation to comment on who should be in the database, how much information should be held about each company and what the registration fee should be.

The consultation is open until 25th May.

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