Regulatory News

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Penalty Update - 27 February 2007

New legislation to increase the penalty for using a hand-held phone whilst driving will come into force on 27 February 2007 . The current fine of £30 will increase to £60 and three penalty points on your licence. Penalty points can mean higher insurance costs. If you get six points within two years of passing your test, your licence will be revoked and you will need to re-sit the test. If the case goes to court, you could risk a maximum fine of £1,000, which rises to £2,500 for the driver of a bus, coach or heavy goods vehicle.

A driver can also be prosecuted for using a hands-free device if you are not in proper control of your vehicle when using the device. The penalties are the same - £60 fine and three points on your licence.

If you are an employer you can be prosecuted if you require employees to make or receive mobile calls while driving. It is an offence to cause or permit the use of a hand-held mobile phone when driving. It is also an offence to cause or permit a driver not to have proper control of a vehicle.

Callers also play an important role in keeping the roads safe. If the person you are speaking to is driving, please terminate the call and arrange to speak to them later.

Why are the penalties going up?

• It is hard to do two things at once and research has shown that if you are using a mobile phone whilst driving, you are four times more likely to have a crash.
• In fact, if you use any type of mobile be it hands free or hands held, your reaction times are worse than if you were driving under the influence of alcohol. Tests have shown that reaction times for drivers using a hand-held phone slows reactions by 50% when compared to normal driving and by 30% when compared to being drunk (Direct Line Mobile Phone Report 2002).
• The use of a mobile phone often involves distractions which could be visual, auditory, mental or physical (Direct Line Mobile Phone Report 2002).
• Even if you're a careful driver, it's easy to be distracted by a phone call or text message - and that split second lapse in concentration could result in a crash.

Are there any exceptions?

• A driver may call 999 or 112 in response to a genuine emergency.
• Two-way radios are not covered by this offence but other devices for sending or receiving data are included if they are held while driving, for example a PDA, Blackberry or similar device.

A multi-media campaign will be starting on 22 January to support the increase in penalties. Activity will include TV, national press, radio and online advertising on key sites. In addition to this, there will be continued PR work with employers, professional bodies, the Police and Road Safety Officers.

Road Safety Officers will also be active in promoting the campaign in their local areas. In order to support the work of the Road Safety Officers, THINK! have produced posters and leaflets which members of the public can order from our
online catalogue.

Drivers who think they can 'beat the ban' on hand held-mobile phones when new laws become effective later this month by simply buying a hands-free kit for their cars are still putting themselves and their passengers at risk.

That's the warning today (Wednesday 7 February) from the IAM, the UK's largest independent organisation dedicated to road safety and driving standards.

Under the Road Safety Act, from Tuesday 27 February, motorists using hand-held phones at the wheel will face a stiffer penalty - £60 - and three points on their licence.

"Inevitably some drivers will think that they should buy a hands-free kit and the problem will go away," said Peter Rodger, IAM Chief Examiner. "That would certainly suit the manufacturers. But drivers should be aware that they are potentially buying trouble - even when you are hands free, research has shown that you are four times more likely to crash because your concentration is split," he said.

“If you do have to use a hands-free kit, keep your conversations short and simple and you should be aware that there are other laws you can be prosecuted under if you are involved in a crash.

"The best advice is to switch off before you drive off - and if you really can't do that, be prepared to stop and find somewhere legal and convenient to return that missed call or check your messages.

"Driving with a hand-held mobile phone is anti-social. Nobody calling you should expect you to risk your life - and your licence - to talk to them on a hand-held phone while you are at the wheel," he said.

"So hands-free does not mean you will get off scot-free. No call is that important that you should risk your life, or that of your passengers."

Three years ago the IAM launched a sticker campaign cautioning "Don't talk to Phoney Drivers".

Mr Rodger said that a full question and answer briefing on mobile phones is available on the IAM website, iam.org.uk, together with other driving tips and advice.

NR/02/07 7 February 2007

Notes to editors:

The full mobile phone law Question and Answer briefing from the IAM Motoring Trust is attached. We have an ISDN line for interviews. For further information please contact the IAM Press Office, 020 8996 9625, out of hours 0208 996 9600.

1. What does the ban mean?

It is a specific offence to use a hand-held phone when driving. A hand-held device is something that “is or must be held at some point during the course of making or receiving a call or performing any other interactive communication function.” A motorist can regard driving as meaning a vehicle with the engine running. In simple terms you can use a mobile as long as you don’t hold the phone and you can’t use a hand-held phone if the engine is running.

2. How much is the fine if you get caught using a hand-held mobile when driving?

Currently motorists will receive a fixed penalty of £30. This will become £60 and 3 penalty points on 27 February 2007 .

3. What happens if you take the matter to court?

Motorists can take the matter to court where the maximum fine is £1000.

(£2,500 for drivers of goods vehicles). Penalty points will also be imposed in courts from 27 February.

4. Can I use a hands-free phone while I’m driving?

Yes, but you can only use it if it can be operated without holding the phone. Therefore mobile phones should be placed in cradles which are attached to the dashboard. Pushing buttons is permissible.

5. Can I stick the phone on to the dashboard?

Technically yes, because the law states that you must not hold the phone when making and receiving a call. However, the IAM Motoring Trust urges drivers not to think of methods of replacing the cradle as they could make their driving more dangerous.

6. Will I still get stopped by police if I am using a hands-free phone when driving?

If you are stopped by police and you are using a hands-free phone while driving, you can face prosecution under other motoring laws. The police can charge you with driving without due care and attention, not being in proper control of the vehicle or even dangerous driving. If there is an accident and you are using a phone you may well be charged with these offences. If someone is killed in an accident where any part of the phone is being used, the driver will almost certainly go to jail.

7. Why is there no ban on hands-free mobiles as well?

Drivers should remember that the police can use other legislation if a motorist is distracted by a call on a hands-free phone. If there is an accident and the driver is using a phone, then there is a risk of prosecution for dangerous driving. The IAM Motoring Trust also reminds drivers that research shows drivers who use hands-free phones are four times as likely to be involved in an accident.

8. If the Government has banned mobile phones, then why did they not stop people tuning in the radio and talking?

Many people find using a phone much more intrusive to their concentration than talking to a passenger or having the radio on – it seems harder to ignore the phone conversation. There are many reasons that might explain that, but the effect is the important thing – it distracts too much.

9. Can I make and receive calls if my phone is in a cradle?

You can push buttons on the phone while it is in a cradle or on the steering wheel or handlebars of a motorbike, as long as it is in the cradle and you don’t hold the phone. However, The IAM Motoring Trust urges drivers not to use even hands-free phones as they are four times as likely to be involved in an accident.

10. Can you text and use the Internet on your phone while driving?

The use of mobile phones for these purposes is prohibited if you hold the phone. You can push buttons on a phone while it is in the cradle as this does not breach the new regulation. However, police may use their powers to stop you under other laws. The IAM Motoring Trust urges drivers not to do this as it could be distracting. Research has shown that drivers who use hands-free are four times as likely to be involved in an accident. Looking at the phone to send or read a text message is obviously not looking where you are going, and risks prosecution for dangerous driving.

11. Can motorists use navigation equipment, personal digital assistants (PDAs) or other computer equipment that sends or receives data?

In theory yes – providing it is not a hand-held device. The Government guidelines state that use of devices other than mobile phones is only prohibited if the device performs an interactive communication function by sending and receiving data. If the device does not perform this type of function, you can use the device without breaching the regulations.

12. Are 2-way radios banned?

The use of 2-way radio equipment when driving is not included in the offence. The IAM Motoring Trust urges motorists that there is still a risk of distraction and prosecution under other motoring laws.

13. Can I use a hand-held phone when I am stationary in traffic?

No, the regulations state that driving includes time when stopped at traffic lights or during other hold-ups, so you can’t use a hand-held. However, if there was an accident on a motorway, for example, and you are sure you won’t move, then you could turn the engine off and then use the phone legally.

14. Can I use my hand-held mobile if it is placed between my ear and shoulder?

No, because you will be holding the phone and breaking the law.

15. Can I use an earpiece kit if my phone is not in a cradle?

Technically yes. The IAM Motoring Trust would never recommend using this though because it would be tempting to pick the phone up and then you would be breaking the law. It could also easily fall on the floor and then you are distracted from driver by trying to pick the phone up. You can use an ear-piece kit if the phone is placed in a cradle and you don’t hold the phone when receiving a call.

16. Should motorists turn off mobiles when driving?

The best way to avoid making or receiving calls in the car is to turn the phone off. However, this is not always practical for everyone. It is safer to let the phone ring and return the call when safely parked. However, motorists should remember that the car engine needs to be switched off to make or take the call. Passengers in the car can use their phones.

17. Can I make emergency calls?

There is an exemption for making 999 calls to the emergency services where it is unsafe or impractical to stop.

18. Who do the regulations apply to?

The regulations apply to drivers of all motor vehicles, including, cars, motorcycles, goods vehicles, buses, coaches and taxis. They also apply to anyone supervising a learner driver, while the learner is driving.

19. Will cyclists be prosecuted for using a mobile phone while cycling?

No, but police do have the powers to deal with careless or dangerous cycling.

20. Are employers guilty of an offence if their employees use a hand-held phone while driving?

The regulations apply to anyone who causes or permits any other person to use a handheld phone while driving. Under Department for Transport guidelines, they consider that employers would not be liable just because they supplied a telephone or because they phoned an employee who was driving. However, employers would probably be liable if they required their employees to use a hand-held phone while driving and might also be liable if they failed to forbid employees to use such phones on company business.

Increasing concern about corporate manslaughter and the likelihood of the Health and Safety Executive becoming involved in cases where a business driver has a fatal accident means that many companies are becoming tough on drivers who use mobile phones. Some are even banning the use of hands-free phones by employees.

21. Do you think hands-free kits are too expensive?

There is a wide range of hands-free kits on the market and consumers have a choice as to how much they spend. The IAM Motoring Trust says that if a motorist is not prepared to spend the money on the hands-free kit, they should turn the phone off while driving. However, if you are caught using a hand-held mobile twice then that would have easily paid for the hands-free kit.

22. What are the insurance implications if motorists are caught using mobile phones when driving?

In theory, an insurance company could refuse to pay for damage to your own car if you were breaking the law at the time of the accident (this could include using a mobile telephone).

The effects on your insurance if you have an accident could include loss of no claim bonus which would result in an insurance premium increase by at least 50 per cent.

Some insurance companies increase premiums for drivers with penalty points. From 27 February this means that breaking the mobile phone law will not only cost a fine and points, but could also increase your premium.

A number of convictions, such as drink driving and dangerous driving may result in cover being refused or a significant financial penalty being applied.

23. The police do not bother to enforce the law, and many, many people break it – I see them on every journey. Do I really need to comply?

That is your choice. But The IAM Motoring Trust would point out that in the first year of the law 77,000 drivers were caught and fined. The three points will hurt drivers more than a fine, and we know that with the points will come a whole new enforcement approach.

This report incorporates data created by or for The AA Motoring Trust, which are used and reproduced with kind permission of The Automobile Association Limited

Ofcom today announced proposals that will allow more extensive licence-exempt use of the radio spectrum and open up high-frequency bands for new and innovative applications.

There are already hundreds of wireless devices that can be used without a licence. These include: wireless headsets, cordless phones, car key-fobs, WiFi equipment, as well as vehicle anti-collision radar and identity cards to activate doors.

Ofcom’s Licence-Exemption Framework Review published today proposes to remove unnecessary regulations that could make it easier to develop new innovative wireless services. Specific proposals include:

• making certain low-power devices, such as those that could potentially be used to transfer data between handheld devices like digital cameras and personal audio players, licence-exempt;
• removing the need to hold a licence to use the largely unused higher frequency bands (particularly above 100 GHz); and
• providing more flexible regulation that will allow many more licence-exempt users to share spectrum and additional capacity for new and existing applications.

Ofcom is required under the Communications Act 2003 to promote optimal use of spectrum in the interest of consumers and citizens.

In November 2004, Ofcom published its Spectrum Framework Review. This set out Ofcom’s intention to enable market forces to play a greater role in determining how spectrum is used and recognised the importance of setting aside spectrum for licence-exempt applications to maximise the use of this valuable resource and ensure more flexibility. The Licence-Exemption Framework Review builds on this to provide guidelines for managing licence-exemption over the next 20 years.

Subject to the outcome of this consultation, Ofcom will publish specific proposals for each of the three areas listed above from 2008.

The consultation runs until 21 June 2007 and the document can be found at:

http://www.ofcom.org.uk/consult/condocs/lefr/

Ofcom today published its Annual Plan for 2007/8 which sets out Ofcom’s policy framework for the next three years and lists specific priorities for 2007/8.

The three-year policy framework and the priorities for 2007/8 were broadly supported by stakeholders during the consultation phase, which included public events around the UK attended by more than 350 people.

Ofcom’s policy work for 2007/8, 2008/9 and 2009/10 will be focused on seven areas:

1. driving forward a market-based approach to spectrum
2. promoting competition and innovation in converging markets
3. delivering public outcomes as platforms and services converge
4. improving industry compliance and empowering citizens and consumers
5. moving towards more consistent legal and economic frameworks
6. reducing regulation and minimising administrative burdens
7. maximising Ofcom’s impact on international policy developments.

Under the seven key areas for the next three years, Ofcom has 15 priorities for 2007/8:

Driving forward a market-based approach to spectrum

1. Accelerating spectrum liberalisation and trading, allowing the market to decide how spectrum should be used, increasing competition and innovation.
2. Releasing more spectrum to allow new services to develop, enabling the development of platforms for the next generation of converged services.
3. Co-ordinating international spectrum policy by representing the UK on key international bodies.

Promoting competition and innovation in converging markets

4. Understanding wireless platforms, such as mobile television and wireless broadband, as convergence progresses.
5. Assessing new sources of market power that emerge through convergence.
6. Promoting competition in converging telecoms and broadcasting markets; central to this will be ensuring that BT Group plc complies with its Undertakings.
7. Securing competition and efficient investment in next-generation networks.

Delivering public outcomes as platforms and services converge

8. Reviewing how Ofcom protects viewers and listeners though content regulation, including the rules protecting against harm and offence.
9. Promoting access and inclusion, including research to understand better the nature of citizen and consumer concerns.
10. Maintaining diverse and high-quality content in public service broadcasting.

Improving industry compliance and empowering citizens and consumers

11. Promoting media literacy and enabling consumers to make informed choices.
12. Making enforcement of the rules designed to protect citizens and consumers more targeted and effective.
13. Ensuring that consumers can switch communications providers quickly and easily.

Moving towards more consistent legal and economic frameworks

We will examine where it is desirable to move towards greater consistency between legal and economic frameworks which govern different platforms; Ofcom will focus on this issue in 2008/9 and 2009/10.

Reducing regulation and minimising administrative burdens

14. Examining the scope for removing regulation and easing the administrative burdens on stakeholders.

Maximising Ofcom’s impact on international policy developments.

15. Participating in core EU negotiations, such as supporting the Government in concluding negotiation on the Audio-Visual Media Services Directive; and contributing to other EU negotiation, such as addressing the legislative proposals which will follow the Commission’s Content Online Communication.

See Related Items for the full Annual Plan 2007/8 and detailed information about Ofcom projects, which will be updated every quarter.

Ofcom today published its Digital Progress Report on the broadband market. The report looks at levels of take-up, usage and the types of services available in the broadband market.

In the seven years since its mass market introduction, broadband has become one of the fastest growing communications technologies. The report shows that over 50% of UK adults now have broadband at home - up from 39% a year ago and a seven-fold increase over the last four years. More than 13 million UK homes and small and medium-sized enterprises (SMEs) are now connected to broadband, compared with 9.9 million a year earlier and 330,000 in 2001.

Many new Internet users are choosing to go straight to broadband rather than first taking dial-up. According to Ofcom’s research, 23% of people with no Internet at home said they were likely to connect in the next year with 76% of those saying they would opt for broadband.

The report also shows that broadband prices are continuing to fall. Speeds of up to 2 Mbit/s were available for £15 a month in 2006, down from £50 in 2003. In 2006 a number of communications providers started offering a broadband service at no extra cost to consumers who took other services in a bundle.

Bundling is an important factor for consumers when choosing an Internet service provider (ISP). At the end of 2006, over 40% of all adults with broadband at home took broadband alongside other communications services from the same provider. When asked what the most important factor influencing ISP choice was, the same proportion of broadband users cited the possibility of bundling with other services (27%) as did price (27%).

Other key findings were:

• Broadband speeds continue to rise. The estimated average headline connection speed was 3.8 Mbit/s at the end of 2006, up from 1.6 Mbit/s at the end of 2005.
• Despite these increases in speed almost half (48%) of residential consumers were unaware of their headline connection speed in February 2007.
• At the end of 2006, one in ten UK adults said they were making calls over the Internet, double the proportion that said they did this at the end of 2005. Of these, 14% said they did it daily and a further 30% did so several times per week.
• Around half of broadband users have accessed online audio or video content at least once; 29% listen to or download online audio and 26% watch video clips online on a weekly basis.
• Local Loop Unbundling (LLU) continues to grow. In February 2007 there were 1.7m residential and SME unbundled broadband lines, accounting for over 10% of all connections compared to 2% a year earlier.
• Ofcom’s research showed that 21% of all UK adults owned a Wi-Fi enabled laptop in February 2007 and over one third of those had used public Wi-Fi hotspots to access the Internet. In September 2006 there were around 12,000 public hotspots in the UK, a 32% increase on the previous year.
• One in three UK adults said they owned an Internet-enabled mobile phone in February 2007 and half of those had used their mobile to go online.
• In 2006 residential and SME connections generated £1.84bn in revenue for broadband providers – a fifteen-fold increase in six years.

Ofcom Chief Executive Ed Richards said: “With over half of UK adults now using broadband at home, we have reached a very significant milestone in the development of broadband Britain. Consumers are responding positively to the competition and innovation that the UK market now offers."

The full report is available at: http://www.ofcom.org.uk/research/cm/broadband_rpt/

Ofcom today announced a new regulatory code for Voice over Internet Protocol (VoIP) service providers that will ensure that consumers have access to important information about the capabilities of their service. All VoIP providers will be required to comply with the code from June 2007.

VoIP services offer consumers the prospect of cheaper calls especially for calls from one VoIP service to another and valuable new services such as call handling and unified messaging.

Over the last twelve months a range of new VoIP services have been launched and demand continues to grow. Industry forecasts predict that there could be as many as three million users in the UK by the end of this year.

Following public consultation in 2006, Ofcom has decided to put in place measures to ensure that consumers have access to information which helps them make informed purchasing decisions. The new code of practice requires VoIP providers to make clear:

• whether or not the service includes access to emergency services
• the extent to which the service depends on the user's home power supply
• whether directory assistance, directory listings, access to the operator or the itemisation of calls are available
• whether consumers will be able to keep their telephone number if they choose to switch providers at a later date.

If consumers choose to take up a service that does not offer access to emergency services or which depends on an external power supply, the code also requires VoIP providers to:

• secure the customer's positive acknowledgement of this at point of sale (by ticking a box, for example)
• label the capability of the service, either in the form of a physical label for equipment or via information on the computer screen
• play an announcement each time a call to emergency services is attempted, reminding the caller that access is unavailable.

As usage in the UK continues to grow, and the market develops further, Ofcom will continue to review and develop its approach to regulation to ensure that consumers gain the full benefits of VoIP services.

A number of respondents to Ofcom’s consultation expressed concern that a lack of access to emergency services via VoIP services might result in consumer detriment.

For that reason, Ofcom intends to consult later this year on whether, and if so how, certain VoIP services might be required to offer access to emergency services.

The document can be found at http://www.ofcom.org.uk/consult/condocs/voipregulation/voipstatement/

Ofcom today announced new charge controls limiting the amount that mobile network operators (MNOs) are able to charge other telephone companies for connecting calls on their mobile networks. Ofcom expects this to result in significant savings for consumers over the four year period that the charge controls will apply.

For the first time, mobile voice call termination charge controls will apply to Hutchison and other providers of 3G services, as well as 2G network operators who were previously subject to regulation. Taken as a whole, Ofcom expects an average annual reduction in wholesale charges of £400-500 million over four years; savings which Ofcom expects to be passed through to retail customers.

Ofcom has decided to reduce the level of average wholesale charges across the board.

• 3 will be subject to charge controls of 5.9 pence per minute (ppm) in today’s prices, a reduction of around 45% from today’s charges.
• The average wholesale charges of Vodafone, O2, Orange and T-Mobile will be reduced to 5.1 ppm in today’s prices and will apply when connecting calls on both 2G and 3G networks.
• For Orange and T-Mobile this represents a reduction of around 20%; and for Vodafone and O2 a reduction of around 10%.
• The reductions from current levels will take place in a number of stages between 1 April and the expiry of the regulations in 2011.

The current charge controls expire on 31 March 2007. In June 2005 Ofcom began a review of the market to decide whether regulation remain necessary. Today’s statement marks the conclusion of this review. Following extensive consultation, Ofcom has decided that:

• Each of the five MNOs (3, O2, Orange, T-Mobile and Vodafone) continues to have significant market power in the market for termination of voice calls on its network(s). Charge controls therefore remain necessary to protect consumers from unduly high prices
• the charge controls should apply for four years from 1 April 2007
• each MNO must connect calls to its network from any operator on a fair and reasonable basis, and charges should be transparent.

Separately today, Ofcom has published a consultation on whether to amend the charge control for each of the five MNOs in light of concerns that operators may not have the right incentives to offer number portability to consumers that wish to switch to another network. The closing date for responses to this consultation is 5 June 2007.

Ofcom has also published its assessment of whether 3 has significant market power in its mobile voice call termination market in the period up to 31 March 2007. This, along with the statement on mobile call termination and the consultation on amendments to the charge controls, can be found at www.ofcom.org.uk

Ofcom today announced an inquiry into the use of premium rate telecoms services (PRS) in television programmes.

Premium rate calls cost up to £1.50 per minute from the BT network and typical services include TV vote lines, competitions, and interactive TV games.

Viewers and a range of other stakeholders have raised serious concerns with Ofcom regarding apparent systematic compliance failure on the part of a number of broadcasters, whose actions appear to contravene existing consumer protection rules.

The inquiry will be led by Richard Ayre, who is a non–executive member of the Ofcom Content Board (a committee of the main Ofcom Board, with delegated and advisory responsibility for a wide range of content issues). The inquiry will include extensive input from the premium rate services regulator, ICSTIS, who are already investigating a number of individual cases. Richard Ayre expects to report his findings to the Ofcom Board and the Content Board by early summer.

The inquiry will examine:

• Consumer protection issues and audiences’ attitudes to the use of PRS in television programmes;
• The benefits and risks to broadcasters in the use of PRS in programmes;
• The respective compliance and editorial responsibilities of broadcasters, producers and telecoms network operators and others involved in those programmes;
• The effectiveness of broadcasters’ and telecoms operators’ internal compliance procedures, guidelines and arrangements to ensure compliance with Ofcom and ICSTIS codes;

The inquiry will also propose recommendations on actions necessary to restore confidence and trust.

Ofcom Chief Executive, Ed Richards said: “Widespread concern about the use of premium rate telephone lines by broadcasters and editorial standards in those programmes has raised serious questions about trust between broadcasters and viewers.

“Ofcom has been monitoring the issue closely and has launched a number of individual investigations since the start of the year. However it is clear from the number of cases underway that a broader set of issues need to be examined as a matter of priority.

“This inquiry will seek to establish the root cause of the compliance issues which have emerged over recent weeks, and inform key decisions about protecting consumers.”

Ofcom today announced two Executive appointments to its Board.

Ofcom Partner, Spectrum Policy Philip Rutnam has been promoted to the Ofcom Board. Philip Rutnam joined Ofcom in May 2003. He leads on the development of Ofcom’s spectrum policy, with responsibilities including spectrum liberalisation, spectrum auctions and the Digital Dividend Review – the project intended to ensure the maximum public benefit from the spectrum released by the switch to all-digital television broadcasting between 2008 and 2012.

A former senior Treasury official, Philip Rutnam’s career includes working in corporate finance at Morgan Stanley in Hong Kong, a period as Private Secretary to the Financial Secretary and responsibility for the Treasury’s interest in business and enterprise.

Separately, Ian Hargreaves has been appointed as Senior Partner in a new Executive role on the Ofcom Board, with responsibility for leadership of Ofcom's engagement with European and international bodies. He will also have oversight of Ofcom’s Secretariat function, corporate governance and engagement with stakeholders in the Nations and Regions; the Corporation Secretary Graham Howell will report to Ian Hargreaves with immediate effect.

Ian Hargreaves joined the Ofcom Board as a Non-Executive Member in December 2002. The former Group Director of Corporate and Regulatory Affairs at BAA plc, his previous appointments include Editor of The Independent newspaper, Editor of the New Statesman magazine, Deputy Editor of the Financial Times and Director of BBC News and Current Affairs.

Both will report to Ofcom Chief Executive Ed Richards. Ian Hargreaves’ appointment is with immediate effect; Philip Rutnam’s appointment will take effect at the end of the month.

Ofcom Chairman David Currie said: "Ofcom has benefited greatly from Philip and Ian's knowledge and experience over the last four years. I am delighted that Philip will be joining the Board and that Ian will be taking on Executive responsibility for increasingly important aspects of Ofcom’s work.”

Philip Rutnam said: "Ofcom faces a number of complex policy challenges in the years ahead. I welcome the opportunity to contribute to the organisation's strategic direction as a member of the Board."

Ian Hargreaves said: "I have thoroughly enjoyed my time as a Non-Executive Member. Ofcom’s approach to the sector is of growing interest to a wide number of people and organisations across the UK, EU and internationally. I look forward to building on Ofcom’s relationships with these important audiences."

Ofcom today published details on how certain aspects of its plan for UK telephone numbering will be implemented, including the introduction of new UK-wide 03 numbers during 2007.

Under the Communications Act 2003 Ofcom is responsible for managing the UK National Telephone Numbering Plan. Telephone numbers are essential to UK households and businesses, and Ofcom must ensure the most effective use of this important national resource. In July 2006 Ofcom set out its general approach for the future in a statement which followed full public consultation.

03 numbers are being introduced as an alternative to chargeable 08 numbers like 0870. Calls to 03 numbers will cost the same as calls to geographic numbers (starting 01 or 02), and be included as part of any inclusive call minutes or discount schemes in the same way as geographic calls.

Revenue sharing – where the dialled party can receive a share of what the consumer pays to make a call – will not be permitted on calls to 03 numbers.

Ofcom intends these requirements to apply to calls from all types of line, including mobiles and payphones, and is seeking to confirm this by a change to General Condition 17, on which there will now be a short consultation.

Organisations using 03 numbers will offer consumers a single national point of contact without involving additional charges for the service, over and above the cost of calls to geographic numbers.

Ofcom Chief Executive, Ed Richards said: “Consumers will be able to dial 03 numbers with confidence about the cost of their call. We expect public services and many others to view 03 numbers as a real alternative to higher cost 08 numbers.”

Ofcom will start allocating 03 numbers to communication providers during March 2007 and today sets out how these numbers will be made available to promote early adoption of 03. For example:

• Numbers starting 030 will be designated for use only by public bodies and not-for-profit services
• Some 03 numbers are reserved so that service providers on existing 08 numbers can transfer to 03 by simply changing the '8' digit in the number to a '3'
• Memorable numbers such as those starting with '0300' and '0333' will be made available. Ofcom will manage the allocation process for such numbers to ensure that they are distributed fairly between the communications providers who apply.

Blocks of numbers are allocated to communication providers, who will in turn allocate numbers to their customers. This process will start in March 2007, which means that the first 03 numbers should appear in circulation by the end of the year.

Ofcom is also taking specific action to prevent scams on 070 ‘personal numbers’, which are often confused with mobile numbers. Ofcom will end 070 personal numbering allocations from the end of 2007.

In July 2006 Ofcom set out its decision to introduce a pre-call announcement of call charges for any 070 calls above a certain price. This requirement will apply if an 070 call costs more than 20 pence (per minute or per call). Ofcom intends this requirement to apply to calls from all lines and is seeking to confirm this by a change to General Condition 17, on which there will now be a short consultation.

The deadline for responses to Ofcom's proposals for amending General Condition 17 is 14 March 2007 - see Related Items for the full document.

Ofcom today set out its intention to extend existing rules designed to prevent mis-selling by fixed line telephone providers. Ofcom considers that these rules work in the interests of consumers, protecting them from inappropriate sales practices and ensuring that they can shop around for better deals with confidence.

Mis-selling refers to inappropriate sales and marketing activities including ‘slamming’, where customers can be switched from one company to another without their express knowledge and consent.

In May 2005 Ofcom introduced new regulations designed to combat mis-selling. General Condition 14.5 requires providers of fixed-line telephony products to establish, then comply with, a code of practice for sales and marketing in accordance with Ofcom’s guidelines. These rules are currently scheduled to expire in May of this year. Ofcom today published proposals to extend these regulations past that point.

Ofcom also proposes that the General Condition be expanded to include providers of services using Local Loop Unbundling (LLU). While the number of complaints related to mis-selling of LLU services is currently low, the potential for consumer harm may increase as providers increasingly migrate customers to LLU. It is essential that customers feel protected from mis-selling in an increasingly competitive market.

In February 2006 Ofcom reviewed current approaches to migrations, switching and mis-selling across transferable voice and broadband products. It assessed whether a common switching process might better protect consumers from harmful excesses of a competitive market. Ofcom will complete this work during 2007.

Ofcom is seeking views on these proposals by 17 April 2007. See Related Items for the full consultation.

Ofcom today published research into the niche Internet Service Provider (ISP) market. The research focuses on smaller ISPs, typically those serving companies with fewer than 30 employees or a small number of residential customers. The research was commissioned during 2006 following requests from industry stakeholders.

The smaller ISP market has a collective turnover of £1.15 billion per year. It comprises nearly 700 service providers serving 30% of UK business customers and 5% of UK households. Based on interviews with more than 300 smaller ISPs, the research shows that:

• Niche ISPs offer a broad range of services from Internet connectivity and web-hosting to consultancy
• More than half (54%) of niche ISPs surveyed claim their approach to service provision, offering personalised products rather than standard packages, give them an advantage over larger ISPs
• Around 9 in 10 (90%) of niche ISPs have 30 employees or fewer
• Niche ISPs are relatively geographically dispersed; more than half are based outside London and the South of England.

The research will help inform Ofcom's policy work including the ongoing Wholesale Broadband Access Market Review which assesses the obligations on BT Group plc to provide other ISPs with wholesale broadband services such as IPStream.

The research is published at: http://www.ofcom.org.uk/research/cm/nicheisp/