Chatline
and Message Services
A report on the provision of Chatline and Message Services
by means of the British Telecommunications public switched
telephone network
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Summary
On 19 July 1988, the Director General of Telecommunications
(the DOT) asked the Commission to investigate and report on
the provision of chatline and message services over the British
Telecom (BT) network. The terms of reference are at Appendix
1.1.
The services we have been asked to consider are charged at
premium rates (38 pence per minute peak, 25 pence per minute
off-peak), significantly above those of ordinary inland calls.
Premium Rate Services (PRS) were introduced hi January 1986,
and have since grown rapidly. There has also been a considerable
increase in the range and sophistication of the services.
The
services are provided by about 120 companies, including BT
itself through BTE Spectrum. Chatline services account for
only a small proportion of all PRS. Chatlines are provided
by over 20 companies, although BT's own chatline service was
withdrawn in February 1988.
Due to the ease of access to PRS and the terms of contracts
between BT and its customers, customers have inadequate control
over the types of service which can be accessed, and over
the charges that may be incurred. As a result unauthorised
use of PRS has caused serious financial problems, albeit apparently
to only a small minority of customers. We believe therefore
that the provision of the services significantly impairs the
value and quality of the telephone service, and operates against
the public interest.
However, we acknowledge that both message and chatline services
have value for which many users are prepared to pay, and that
measures which would jeopardise their continuation and development
would not be justified. We believe that there is an adequate
remedy which falls short of requiring the withdrawal of the
services.
With modernisation of the network, the technology will be
available in the longer term to remedy the main adverse effect
of PRS. We recommend that BT should be required by a modification
of its licence to provide facilities, as it becomes technically
and economically feasible to do so, for itemised billing of
calls; for notification when bills exceed a predetermined
limit; for barring of calls
to PRS; and for Calling Line Identification. (Future developments
in this area are the subject of further comments by Mr Fairbairn.)
Until such facilities are available, we believe that interim
measures could be taken to alleviate, but not fully remove,
the adverse effect of PRS. We recommend that BT's licence
should be modified to require the provision of chatline services
in accordance with a code of practice to be negotiated between
the DOT, BT and the chatline providers. In the case of message
services, we believe that the present code of practice could
usefully be enhanced and further measures could be taken by
BT itself to promote call-barring equipment, and to warn customers
of the risks of unauthorised use of the services, without
any modification to BT's licence.
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