Wednesday 26 August 2009

Unpaid fines see PPP put the squeeze on outpayments – could this be the end of PRS as we know it?

News that PPP fines are going unpaid as companies – particularly fixed line service providers – plead insolvency may seem a bit of jolly wheeze: after all, its not that unlikely that some of these people are, as PPP attests, setting up shell companies, running a scam, then dodging the fine by ‘going out of business’. It’s the oldest trick in the book.

The problem is that PPP is now telling network opeators to withhold outpayments on anyone that looks slightly like they are in financial trouble in a bid to out manoeuvre the hucksters. The result: the already hard hit PRS market is suffering even more than usual with this extra squeeze.

When asked about the move and whether it was perhaps heavy handed, PPP reiterated its statement on the process thus: “In its recent Scope Review, Ofcom has recommended a registration process that is intended to improve due diligence processes, and the development of a new edition of PhonepayPlus’ Code of Practice should lead to additional protection. Until these arrangements are in place, PhonepayPlus intends to use existing powers to target certain types of organisation that have a profile of susceptibility to non-payment, by using directions to withhold revenue in Standard Procedure cases which meet the criteria set out here. Networks will be familiar with these procedures, which are currently already in use for Emergency Procedure cases”.

The move is one more step towards forcing service providers to start to adopt web based service provision and could, in my view at least, mark the death knell for the old way of doing PRS with telephones and operators and the like.

The move towards alternative billing solutions, better broadband and the acceptance of using the web to make calls, do messaging and so on are all making the idea of looking at new ways of delivering premium content and services ever more attractive. Moves like this by PPP to put the squeeze on even further will only hasten the end of trad PRS – and indeed hasten the end of what PPP seeks to regulate.

All this – and more – will be debated in depth at Telemedia 360 in Liverpool on 21 October. Watch this space in the next five working days for details of how to register for this key UK industry event.

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