ACA to increase premium number regulation

The Australian Communications Authority will investigate the need for additional regulation surrounding premium rate 190 phone services following an allocation of AU$600,000 over four years in the federal budget.

The Authority (ACA) has released a second discussion paper on the issue of regulating premium service 190 numbers, which charge up to AU$5 per minute to provide services such as astrological readings and sexually explicit material.

The services are steeped in controversy due to an increase in the number of complaints to the Telecommunications Industry Ombudsman over the practice of Internet Dumping, which shunts consumers onto the higher cost premium lines without their knowledge, causing them to rack up unexpectedly large phone bills.

The ACA is considering implementing a monthly cap on 190 phone call charges and whether the industry's self-regulated code of practice should be registered under the Telecommunications Act 1997. It is seeking written public comment until May 30.

"Our focus through the consultation process remains on developing measures that will better protect consumers from unexpectedly high bills as a result of using these services," said ACA member Allan Horsley.

The ACA will also introduce a new Web-based auction system to allocate as yet unreleased Freephone and Local Rate Numbers such as 1800, 13 or 1300, with a preferential arrangement for charities to obtain the phone numbers that have a strategic relationship to their organisation.

"This new approach puts in place a transparent and equitable process that promotes an appropriate return to taxpayers for allocating a scarce and valuable resource," said the Minister for Communications, Information Technology and the Arts, Senator Richard Alston, in a statement.

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