Ofcom UK Tackle Consumer Harm Caused by Cash for Calls Schemes

The UK telecoms and media regulator, Ofcom, has today launched a new consultation that looks set to tackle the risk of consumer harm from so-called “cash for calls” schemes. This will work by making clear that revenue sharing on certain phone number ranges (e.g. 084 and 087) will not be permitted.

For those who aren’t familiar with them, cash for calls schemes work by inducing callers to use their inclusive free minutes in their call package to make lengthy or repeated calls in return for a reward (i.e. cashback for making phone calls).

Such schemes require revenue sharing in order to work, which occurs when a phone provider shares part of the revenue it receives for terminating phone calls directly or indirectly with the person receiving the call (the called party), or with the person making the call (the calling party).

Ofcom naturally keeps an eye on such things via their rulebook for UK phone numbers – called the National Telephone Numbering Plan. But Ofcom is concerned that the current revenue sharing rules in the Numbering Plan have developed in an ad hoc fashion, which has led to some inconsistencies.

For example, the Numbering Plan makes specific provision for revenue sharing on certain ranges (for example 084 and 087), but in other cases is silent as to whether revenue sharing is permitted. “This may appear to allow revenue sharing to take place in ways which could give rise to consumer harm,” said Ofcom.

Ofcom’s Proposed Changes

We have reviewed each number range in the Numbering Plan to assess whether it is appropriate for revenue sharing use and are making the following proposals:

01/02, 03, 055, 056, 070, and 076 numbers

These number ranges support a variety of services. However, it was not intended that communications providers should share revenue with any other party to a call. We are therefore proposing to clarify that it is not permitted to share revenue, directly or indirectly, with either the called party or calling party on these number ranges.

084 and 087 numbers

Our rules allow these ranges to support a micropayment mechanism for callers to pay for services by sharing call revenue with the called party. This will not change as a result of the proposals we are making in this consultation.

However, we are proposing to prohibit revenue sharing with the calling party. This form of revenue sharing is an important mechanism for ‘cash for calls’ schemes which encourage customers to artificially generate calls for monetary gain. Such activities may undermine the availability in bundles of inclusive calls to 084 and 087 numbers, which are important to consumers who often have limited awareness of the price of calls outside their bundle.

07 mobile, 09 and 118 numbers

We are not making proposals in relation to these number ranges.

In the case of 07 UK mobile numbers, any prohibition on revenue sharing would apply to SMS/MMS as well as voice calls. We are inviting comments on whether such a prohibition would have any adverse consequences. Although there may be a case for clarifying revenue sharing rules in relation to mobile calls, it would require further work to establish the full impacts and benefits of such a proposal on the market for SMS/MMS text and media messages.

The 09 (premium rate) and 118 (directory enquiries) ranges are intended to offer a micropayment mechanism for callers to pay for services by enabling the sharing of call revenue with the called party. As these calls are rarely included in call bundles, cash for calls schemes are unlikely to arise. Consequently, we do not see a need at this time to prohibit revenue sharing with the calling party.

Withdrawal of the 082 internet for schools number range

We are also proposing to update the Numbering Plan to remove the 082 internet for schools number range. This range was used for dial-up internet services but is now obsolete and unused. All 082 number allocations have been returned to Ofcom.

Ofcom intends to consult on all this until 2nd February 2024 and, assuming all goes to plan, the regulator will then issue a statement setting out their plans during Q2 2024 (spring).