The announcement comes in the wake of a public outcry over rogue diallers – software that installs a default dial-up number onto an unwitting person's computer to call a premium rate number, resulting in an unexpectedly expensive call every time the computer connects to the internet.
Such is the volume of complaints pouring into industry watchdog the Independent Commission for the Supervision of Standards of Telephone Information Services (ICSTIS) that earlier this month the Conservative MP for NW Hants, Sir George Young, described the regulator as being in a state of "meltdown".
The new licensing arrangements announced yesterday mean that services will have to obtain the prior permission of the regulator before they are allowed to operate, and that no telephone network will be able to give out premium rate numbers to companies offering such services until they see written confirmation from ICSTIS that permission has been granted.
George Kidd, Director of ICSTIS, confirmed that permission would only be granted to those companies satisfying stringent requirements.
"These are currently being finalised," he said, "but will cover key areas such as clear terms and conditions, user consent, information about how to delete diallers, and responsibility for customer refunds and ICSTIS fines."
Kidd called on others in the industry to play their part – in particular phone companies, who should be able to identify suspicious call patterns and take action to prevent their customers running up huge bills.
Networks that give out premium rate numbers also have a role to play in properly checking the companies involved, and the speed at which money is passed on to them, said Kidd.
"We will not hesitate to report any networks that perpetuate consumer harm to Ofcom and are confident that they will take swift, tough action against them. Finally, we will continue to work with the police and other enforcement agencies to ensure that those responsible for defrauding consumers face the full consequences of their actions," he warned.