Oftel

DETERMINATION RELATING TO THE PROVISION OF CONTROLLED PREMIUM RATE SERVICES UNDER SUB-PARAGRAPH 22.9 OF CONDITION 22 OF ALL PUBLIC TELECOMMUNICATION OPERATORS (“PTO”) LICENCES AND UNDER SUB-PARAGRAPH 26.9 OF CONDITION 26 OF THE CLASS LICENCES TO RUN BRANCH SYSTEMS TO PROVIDE TELECOMMUNICATIONS SERVICES (“TSL”) AND INTERNATIONAL SIMPLE VOICE RESALE SERVICES (“ISVR”)

CONTROLLED PREMIUM RATE SERVICES

1. The Director General of Telecommunications (the “Director General”), in accordance with section 12 of the Telecommunications Act 1984 as amended by the Electronic Communications Act 2000 (the “Act”), has today made modifications to all licences granted by the Secretary of State for Trade and Industry (the “Secretary of State”) under section 7 of the Act to particular persons during the period beginning on 22 June 1984 and ending on 29 August 2001, for the running of telecommunications systems which the Secretary of State has designated by order under section 9 of the Act as public telecommunications systems, collectively referred to hereinafter as the “PTO licences”. 2. The Secretary of State, in accordance with section 7(12) and (13) of the Act, has today revoked and re-granted the class licences to run branch systems to provide Telecommunications Services and International Simple Voice Resale Services (referred to hereinafter as the TSL and ISVR licences, respectively). 3. The effect of the relevant modifications to the PTO, TSL and ISVR licences is to widen the definition of what type of Premium Rate Services (“PRS”) are caught under those licences by replacing the definition of ‘Controlled Services’ with the definition of ‘Controlled Premium Rate Services’. This has the effect of strengthening the regulatory regime in the PRS industry, so that the provision of a potentially larger category of PRS (other than simply live PRS) can be governed by a code of practice recognised by the Director General. 4. The modifications take the form of replacing the current Condition 22 (entitled ‘Controlled Services’) of the PTO licences with a new Condition 22 (entitled ‘Controlled Premium Rate Services’). Similarly, a new Condition 26 (which makes provision in identical terms to that of the new Condition 22 of the PTO licences) replaces the current Condition 26 of both the TSL and ISVR licences. The text of the modifications and their effect are set out in full in the Oftel Statement entitled ‘Regulation of Premium Rate Services: Licence Modification’, which was published on 24 July 2001. Copies of the full text of the modifications are available via Oftel’s website (address below) and are also available from Oftel’s Research and Intelligence Unit (telephone and fax no below). 5. Condition 22.9 of the PTO licences and Condition 26.9 of the TSL and ISVR licences provide that, for the purposes of ascertaining whether a service is a Controlled Premium Rate Service, the Director General shall determine an amount for the charge of the Call by means of which the service is obtained or the rate according to which such Call is charged or both which, when exceeded, means that sub-paragraph 22.11(a)(iii)(A) of the PTO licences and sub-paragraph 26.11(a)(iii)(A) of the TSL and ISVR licences of the definition of Controlled Premium Rate Services is satisfied. 6. The Director General hereby gives notice that he is making a determination under sub-paragraph 22.9 of the Condition 22 of PTO licences and sub-paragraph 26.9 of Condition 26 of the TSL and ISVR licences that the amount for the charge of the Call by means of which the service is obtained must exceed 10 pence or the rate according to which such Call is charged must exceed 10 pence per minute in order to satisfy the definition of Controlled Premium Rate Services as detailed in sub-paragraph 22.11(a)(iii)(A) of the PTO licences and sub-paragraph 26.11(a)(iii)(A) of the TSL and ISVR licences, respectively . 7. In determining that amount, the Director General has had regard to the current prevailing standard rates for premium rate calls of the Licensees operating under the PTO licences. The Director General notes that while premium rate calls are available at a rate of less than 10 pence or 10 pence per minute, this is not standard practice, and that the vast majority of premium rate calls would be offered at a price in excess of 10 pence or 10 pence per minute. 8. The text of the determination together with the Explanatory Memorandum is available via Oftel’s website (www.oftel.gov.uk) or may be obtained from Oftel’s Research & Intelligence Unit (telephone 020-7634 8761, fax 020-7634 8946). D Edmonds, Director General of Telecommunications 8 February 2002.