Posts Tagged ‘Ofcom’

Ofcom overruled by Competition Commission

Monday, January 26th, 2009

Ofcom was planning to reduce the termination charges of the UK MNOs to 5.1p per minute by 2010/2011. Now the Competition Commission have ruled the termination rate should be 4p (apart from 3 the 5th 3G operator who gets to chatge 4.4p).

The Competition Appeal Tribunal passed the complaint to the Competition Commission after 3 and BT complained to them.

The Tribunal now has to decide whether to accept the decision. If it does Ofcom will have to redo its business models on the cost of running a 3G network including the cost of the license fee.

As the complaint took charges into account from 2007, some operators may be due refunds.

WIN Plc and the 72 £1.50 text message bomb

Thursday, September 4th, 2008

Back in 2006, a MIR reader’s daughter got a text message.

And another. And another. And woosh. Across what appeared to be a few minutes, she was text-bombed.

Whether by mistake or by design, she ended up with a heck of a lot of premium rate texts being delivered to her handset. The reader describes it thus:

The 72 unsolicited reverse SMS texts were sent at two second intervals, my daughter was on a trip in her car, when her phone ‘in box’ filled up, she deleted the total content, when it filled up again in the blink of an eye, she again deleted the whole lot, and to this day, we have no idea what the content actually contained.

WIN (as the aggregator in question providing the connectivity for another company who originated the texts) refunded this amount after the reader complained.

All is well, yes?

Well not quite. The reader is — rightly — appalled by the matter. He, I suspect, is thinking that the mobile industry is a normal industry. It’s regulated after all. Right? So this sort of thing shouldn’t keep happening. Right?

Whilst there’s no current complaint, the reader’s astonishment, shock and bewilderment in dealing with both WIN, Ofcom and PhonePayPlus was one I wanted to highlight.

I don’t think he understands how this sort of thing was allowed to go on. And, in many cases… still does continue, only in different ways.

It’s a sad state of affairs when my response to the reader is thus: I’m pleased you got your money back. Let’s move on.

What else can you say?

It’s a seedy industry. It’s roots are seedy. Only a percentage play fair.

It’s a lot better than it used to be, here in the UK.

But there’s still a huge issue between the aggregator supplying the connectivity — and the client companies they work with abusing the aggregator’s connections, often resulting in fines.

What can you do?

Be responsible.

Yes and no. The aggregator viewpoint is simple: They can’t monitor every message. They can’t check every single new service launched. They don’t have the resources. Or they choose not to have the resources.

It’s cheaper to pay the fines, refund the complaints and skim where possible.

It’s all changing though — as premium text message begins to wane in popularity, we’ll begin to free ourselves collectively from the menace that is the premium rate scammers.

Once you get to the likes of the Apple iTunes App Store, the opportunity for scamming seriously diminishes.

Ah dear.

4 in 10 of us have ditched our mobile provider

Thursday, August 14th, 2008

Watchdog Ofcom has been taking a look at how much we’re spending on telecoms these days and rather happily has discovered we’re paying less but actually getting more for our money – we’re paying about 1.50 less than we were last year on our communications – mobile, broadband etc – and about 4.30 less than we were in 2004.

Here’s one of the reasons behind the drop, according to Ofcom:

Bargain hunting : An increasing proportion of us are switching between providers in order to get the best deal. By March 2008, 27 per cent of us had switched our internet provider at least once; 37 per cent had switched landline provider and 41 per cent had changed mobile provider.

Does this mean mobile operators will find new ways of feeling loved so we don’t switch provider, offering us tasty new services and great discounts, or just lock us into longer and longer contracts? I’ll let you take a guess…

UK needs age ratings for under-18 mobile content

Wednesday, August 13th, 2008

Guess what? The mobile industry is actually doing something right for once. Yep, according to watchdog Ofcom, the system of self regulation operators have in place to stop kids getting their hands on adult material before they’re 18 is working out fine, although it did administer a gentle slap on the wrist over information: apparently precious few of us know how about the age verification mechanisms used to block kids from accessing inappropriate content.

Ofcom did say:

“The current arrangements block access to 18-rated material to non-age-verified customers. With increasing numbers of younger children having access to mobiles capable of accessing AV content, mobile operators may need to consider if a binary system at 18 provides sufficient protection from inappropriate content for younger users, or whether a more granular system should be considered.”

The Guardian reckons that’s a sign that we’re going to get cinema style age ratings on mobile content. Not a bad idea, I reckon, assuming operators can put up with the hassle of verifying young customers’ ages – and if there’s a profit in it, I expect they can – I can really see it working.

O2 hits 80 percent 3G coverage at last

Tuesday, May 6th, 2008

When operators bought their 3G licences back in 2000, they all promised to get coverage to 80 percent of the population by the end of last year. And they all managed it too – with the exception of O2, who got a bit of a slap on the wrist from the regulator after it missed the deadline.

The story has a happy ending though – Ofcom has confirmed O2 has finally hit the 80 percent target, albeit several months behind its rivals and after threats by the watchdog to cut its licence short unless it fulfilled its 3G pledge.

There’s some suggestions that this is secretly a signal a 3G iPhone is on the way. While it probably is, I don’t think this network build out is anything to do with it: after all, O2 launched the first 2G iPhone, and it didn’t have much of an EDGE network to start with either.

Ofcom gives green light to mobiles on UK planes

Thursday, March 27th, 2008

If you’ve been reading the news about Emirates and Qantas’ launches of in-flight mobile access and wondering when such mile-high talk and text would be coming to the UK, Ofcom has the answer.

The regulator has announced that it will permit mobiles in aircraft as long as the airline has the backing of either the European Aviation Safety Agency or the Civil Aviation Authority. Ofcom gives the proviso that phones must still be switched off on take off and landing and connectivity can only be switched on once the plane reached 3,000 metres.

Initially, airlines will be able to offer GSM and “if the service is successful it could be extended to 3G and other services in future”, Ofcom says. Is this the death of work downtime on planes as we know it? And how long before there’s an air-rage incident because someone couldn’t keep their voice down in-flight?

Operators ask to dodge termination fees

Thursday, March 20th, 2008

The Competition Appeal Tribunal has referred the question of wholesale mobile termination rates – the fee each operator charges another to connect a call on their network – to the Competition Commission after appeals by BT and 3.

The appeals come after Ofcom changed the controls on mobile termination rates early last year, which it said at the time would save operators £400 to £500 million a year and that saving should be passed on to retail customers.

According to The Guardian, the operators are now hoping to get termination rates down to nothing in order to be able to offer all-you-can-eat call plans of the type that have become common in the US. If that’s the case, great. If it saves the operators money, that’s great too – as long as the operators remember to send a bit of those savings our way, as Ofcom asked for.

Ofcom cracksdown on mobile misselling

Wednesday, March 19th, 2008

After it warned the mobile industry last year that mandatory regulation could be on the way if it didn’t clean up its act, Ofcom is hoping to introduce new rules to clamp down on mobile misselling. The mobile watchdog said it was pressed to do so after “some mobile phone companies and third party sales agents are still engaging in unacceptable practices that are against the consumer interest” and receiving around 700 complaints a month.

The regulator is particularly riled about two practices: where customers are given false or inaccurate information when they want to buy a mobile contract; and some “cash back” promotions offered by sales agents where they fail to reimburse the consumer.

If the rules are adopted, it will mean mobile operators will be bound:
• not to engage in dishonest, misleading or deceptive conduct and to ensure that those selling their products and services similarly do not mis-sell;
• to make sure the customer intends and is authorised to enter into a contract;
• to make sure consumers get the information they need at the point of sale;
• to ensure that the terms and conditions of cash back deals offered by their retailers are fair; and
• to carry out due diligence and a number of checks in respect of their retailers.

Anything that adds to consumer protection and confidence in the mobile industry can only be a good thing. Applause for Ofcom.


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