ICSTIS, the Independent Commission for the Supervision of Standards of Telephone Information Services, had announced in July that prior permission was going to be required, following 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.
The volume of complaints has been so great that last week Ofcom announced a review of the rules governing premium rate 090 telephone services. This will consider options to strengthen the powers of ICSTIS as well as any other actions necessary.
The arrangements
Under the new licensing arrangements, from 6th August a service provider can provide no premium rate service using a dialler unless ICSTIS has given its prior written permission.
Service providers operating these services as at 6th August have 21 days to apply for retrospective prior permission. Permission shall only be granted if the dialler connects to one premium rate service through one premium rate number, and the dialler contains an identifier that will detect changes to the software.
Permission is also dependent on:
the terms and conditions of the service being shown and accepted by the user prior to the downloading of the dialler;
an on-screen clock being displayed during the operation of the service, showing the time spent and costs incurred by the use;
the automatic termination of the service once the cost of the call has reached £20; and
the restoration of the user's original ISP settings once the user has stopped using the service.
ICSTIS also requires a service provider to exhibit a signed agreement between itself and the network operator it proposes to use, before permission will be granted. This agreement will ensure that the operator retains a set proportion of the revenues due to the service provider. The retention will be held by the operator for six months after the service ceases to operate, to ensure that any fines imposed by the regulator will actually be paid.
At present, although ICSTIS is empowered to fine companies that breach its code of practice, many of these companies can avoid paying the fines by basing themselves overseas or declaring themselves bankrupt.
Yesterday ICSTIS published its latest adjudication results, including fines against 24 companies that came to a total of £581,700.
Six companies based variously in Zagreb, the British Virgin Islands, India, Florida and Kuala Lumpar were fined £75,000 each for sending unsolicited text messages that advised recipients that they had won cash prizes. Recipients had to call premium rate numbers in order to receive the prizes, which were not genuinely available, according to ICSTIS.