Ofcom publishes guidance about 'small print' charges

Regulator Ofcom has published guidance that tells communications providers how it thinks the law - the the Unfair Terms in Consumer Contract Regulations 1999 - applies to any charges consumers may have to pay in addition to their regular bill. These charges are usually for not paying by direct debit, for receiving paper bills, for late payments or for leaving before a contract ends. Ofcom has also published a consumer guide that covers the same subject. Its guidance says charges for late payments and different payment methods should be limited to the cost of dealing with payments, charges for itemised billing shouldn't be more than £1.50 per bill and consumers who end contracts early should never have to pay more than the payments left under the contract. [Press release; Consumer guide (pdf)]

New Ofcom head announced

Dr Colette Bowe has been chosen to replace David Currie as chairman of Ofcom, the independent regulator and competition authority for the UK communications industries. Dr Bowe began her career as an economist at the Department of Trade and Industry and is currently a Board Member of Axa Framlington, Morgan Stanley Bank International, Electra Private Equity and London & Continental Railways, as well as being Chairman of Council at Queen Mary College and a board member of the National Institute for Economic and Social Research. She has been a member of the Ofcom Board since January 2008 and is a member of the Ofcom Audit Committee. Her appointment will now be formally scrutinised by the Business and CMS Select Committees. David Currie steps down from his role after Easter next year. [Press release]

French mobile costs cut by regulator

ARCEP, the French telecoms regulator, is cutting wholesale mobile termination rates by around 2 Euro cents per minute from next summer - and again the following year - with consumer call charges expected to fall as a result. [Sources: ARCEP pdf (French); BWCS.com]

Regulation plus credit crunch risks damaging telecoms industry says trade body

ETNO, the European Telecommunications Networks Operators' association (which represents Europe's telecoms and electronic communications operators) says the current economic situation means regulation should be gentler - otherwise investment in new technology might not happen. In particular, it said a priority for the next few years should be investment in fixed and mobile broadband networks. [ETNO CEO summit; ETNO General Assembly]

EC takes action against telecoms regulators in Latvia, Lithuania and Sweden

The European Commission has opened infringement proceedings against Latvia, Lithuania and Sweden because of concerns about the independence and effectiveness of telecoms regulators in these countries. [Press release]

Is mobile technology giving us what we need?

Ofcom has published a consultation called "Mobile citizens, mobile consumers", which considers whether the mobile sector is delivering on the needs of UK citizens asking whether regulation should adapt to reflect market and technological changes. The consultation, which ends on 6th November, is looking at

• customer service, consumer choice and value for money;
• mobile as part of the broader communications market; and
• the future of industry regulation, including mobile termination rates.

[Executive summary; News release]

European parliament disagrees with EC telecoms super-regulator

The Industry, Research and Energy Committee of the European Parliament, along with the Internal Market and Consumer Protection Committee, have voted on the European Commission's proposals to reform the EU Telecom rules. They've voted to create a new organisation that'll see independent telecoms regulators working together - instead of supporting the European Commission's plans for a so-called super-regulator. Although this isn't the final part of the process, the European Parliament is likely to follow their recommendations later this year. The new group will be known as the Body of European Regulators for Telecommunications, or 'BERT'. [EU press release; European Parliament press release]

EU could drop ‘super regulator’ plans

Reports are suggesting that the European Commission’s plan to set up a European Telecommunications watchdog risk may be ditched because many member states simply aren’t interested. The proposal, which was first suggested last year, could end up being replaced by a package of greater powers for existing national regulators. European ministers are meeting tomorrow (Thursday) to discuss the scheme. [Source: Cellular-News.com]

Phone call database planned

The Times says the UK government is planning a database that holds details of every phone call, email and internet browsing session as part of its fight against crime. Information would be held for at least 12 months. The plans have apparently been considered as part of a data communications bill that would be included in the Queen's Speech in November. The EU already requires telecoms companies to keep records of phone calls and text messages for 12 months.

Premium rate phone watchdog to investigate mobile phone promotions

PhonepayPlus, the premium rate phone regulator, has said it will be reviewing premium services on mobile phones. The UK market is estimated to be worth around £350 million annually. The regulator will look at ringtones, games and other chargeable downloads, with a particular focus on unsolicited promotions, price transparency and subscription services. (PhonepayPlus was previously known as ICSTIS; it's the regulator for services that allow you to charge purchases to your phone account). [Press release]

Ofcom proposes clampdown on mobile mis-selling

Ofcom is proposing a change to the law surrounding mis-selling mobile phone services. Its proposal covers customers being given incorrect information, 'slamming' (where consumers are committed to a new contract without their consent) and cashback schemes.

The new rules will require mobile service providers:

• not to engage in dishonest, misleading or deceptive conduct and to ensure that those selling their products and services do not mis-sell;
• to make sure the customer is authorised to, and intends to, enter into a contract;
• to make sure customers get the information they need when they buy the product;
• to ensure that the terms and conditions of all sales incentives offered by their retailers are not unreasonable; and
• to carry out due diligence and checks to ensure the soundness of their retailers.

Ofcom says these new rules - if implemented - will let them formally investigate complaints and impose sanctions for breaches of the regulations. They'd like feedback on their proposal by 29 April 2008.

Regulator warns young people about SMS scams

25,000 mobile phone customers aged 18-24 have been sent a message from the Office of Fair Trading (OFT) telling them they might have won £1,000 in cash. It was followed by a second message letting them know the message was part of a warning about scams. The original text said: Urgent! U may have won £1k cash with '2 Good 2 B True'. The follow-up message promoted SMSus, a new text message service from premium rate regulator PhonepayPlus, which allows users to text details of a premium rate number or shortcode they are suspicious about to 76787. They'll then be told the cost of using the premium rate number, details of the service provider and how to contact them. The service is free for most people but will cost no more than 12p. [Sources: BBC News, PhonepayPlus PDF press release]

House of Lords committee rejects plans for new EU Telecoms regulator

The House of Lords Select Committee on the European Union has said that existing EU legislation for telecommunications appears to work - and is not persuaded that the European Commission's proposal to establish an EU regulator for the telecommunications sector is necessary. [Select Committee report]

Ofcom talks about EU text and data roaming

Ofcom Chief Executive Ed Richards has issued a statement about text and data roaming charges in Europe. He's particularly concerned about:

• the cost of sending a text from abroad (an average 5.6p within the UK, compared to 21p when abroad),
• the cost of using data abroad (an average £4.11 per MB based on last year's prices)
• the practice of rounding up roamed voice calls to the first full minute.

He points out that some networks have reduced their prices since the data was produced, but he says he'll be talking to the European Regulators Group and the European Commission if networks don't make further cuts.