Save for an adjustment for VAT in 2012, tariffs rates for Premium Rate Services (HRPRS) have been capped at the same level for 14 years, with no adjustment made for product innovation of inflation.
Issue
- Market is being unduly constrained by out of date price restrictions
- Margins are being squeezed by inflation and some services are no longer profitable
- Fixed line industry unable to compete with mobile shortcodes services that can be up to £5
- HRPRS review has been pinned to Ofcom NTS implementation not due until May 2015
Action Plan to Resolve
- AIME proposing trial to Ofcom for matched VSC services on mobile to avoid price differential (mobiles cost more) – a major concern
- Non supporting mobile networks should cap uplift to be in trial
- Trial length set to allow time for NGN implementation
- AIME invited to sit on committee to agree consumer comms strategy, next meeting 30th Sept
- AIME feeding into industry research on pricing disclaimer message
