Ofcom Issues Report on Premium Rate Telephone Services

LONDON, July 18: British regulatory authority Ofcom has
issued the findings of its inquiry into premium-rate telecoms services, noting
that some broadcasters are “in denial” about their responsibilities to viewers.

Ofcom initiated the inquiry in March after news broke of
irregularities in call-in competitions on a number of networks. The regulator
has since levied fines on Five and the BBC. The inquiry was led by Richard
Ayre, a non-executive member of the Ofcom Content Board and former deputy chief
executive of BBC News. It found that compliance failures were systemic and that
some broadcasters are “in denial about their responsibilities to ensure
programs delivered on the transactions they offered to viewers.” Furthermore,
the report cites an apparent “lack of transparency” in the supply chain between
telcos, producers and broadcasters, “resulting in a lack of clarity about
responsibilities.”

Ayre noted: “Phoning a TV show isn't like ordering pizza.
When you put the phone down nothing arrives: you just have to trust that your
call was counted. If broadcasters want audiences to go on spending millions
calling in, they need to show they take consumer protection as seriously as
program content."

The report recommends that broadcasters’ licenses be amended
to include requirements for consumer protection in relation to call-in
services, and mandate independent thirty-party auditing of those services.
Ofcom intends to consult on the full recommendations as part of its broader
Participation Television consultation, due to be published in the next few weeks.

Ed Richards, Ofcom’s chief executive, stated: “This inquiry
shows the extent to which there has been a systemic failure of compliance.
Ofcom takes these issues extremely seriously and will continue to take action
against broadcasters found to break the rules in this area. To restore trust
with viewers, broadcasters need to deliver and demonstrate strong consumer
protection as well as quality programming. Ofcom's consultation will identify
the best way to make this happen."