Communications Minister Eamon Ryan today announced the transfer of regulatory functions for premium rate services previously held by RegTel, to Communications Regulator, ComReg. Premium rate services include text and phone services such as ring-tones, games, competitions and are charged at a higher cost than regular services.
Under the Communications Regulation (Premium Rate Services) Act, which was recently signed into law, ComReg will have full powers of regulation over the premium rate industry.
From today, it will be in a position to:
• Award licences subject to stringent conditions and revoke them in cases of breach
• Seek court fines - up to €250,000 for very serious offences
• Require premium rate service providers to answer and respond to customer queries and complaints
• Provide refunds where necessary
“Placing regulation on a statutory basis with strong enforcement measures”, said Minister Ryan, “will allow for better, more effective oversight of the premium rate sector.
While, the majority of premium rate service providers are acting lawfully and contribute significant amounts to the overall communications industry, there remains a small number of rogue operators that deliberately sets out to mislead the consumer.
Effective monitoring is needed to help ensure that these ‘rip-offs’ no longer occur and where they do, that the companies involved are subjected to serious sanctions.
With this new regime, the decision-making process for the imposition of fines, revocation of licences and refunding of consumers will be significantly enhanced.
This is a common-sense approach to public service and consumer protection.”
Under the new system, existing RegTel staff have transferred to Comreg.
Minister Ryan thanked them, along with the previous Regulator, Pat Breen who he said together, have provided a “model in customer-service” over the past ten years.
ENDS
Note to editors:
Under the terms of an Order signed by the Minister for Communications, Energy and Natural Resources, the function of regulating premium rates services has transferred to the Commission for Communications Regulation (ComReg) with effect from 12 July 2010.
The main provisions are:
• The transfer of the function of regulating premium rate services from Regtel to the Commission for Communications Regulation (ComReg).
• The licensing of premium rate service providers and the setting of the conditions of a licence by ComReg.
• Sanctions for the breach of the conditions of a licence and offences for overcharging and for providing an unlicensed service.
• The publication of an industry code of practice by ComReg to be complied with by service providers.
• The transfer of existing staff from Regtel to ComReg.