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OFTEL Operator Policy Forum October 2000. Update on Pay for Product Adam Maxted Chairman of PfP Committee. Introduction. Definition of PfP Examples of long call PfP PfP Committee & Working Parties Sequence of events & current status Next actions Summary. What is Pay For Product ?.
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OFTEL Operator Policy ForumOctober2000 Update on Pay for Product Adam Maxted Chairman of PfP Committee
Introduction • Definition of PfP • Examples of long call PfP • PfP Committee & Working Parties • Sequence of events & current status • Next actions • Summary
What is Pay For Product ? • “ The use of premium rate telephone services and a single drop tariff (above £1) to pay for goods or services where they are delivered to the subscriber following completion of the call.”
Types of products & services Suits low value items under say £20 Examples could include : • Books • CDs • Videos • Subscriptions • Ticket sales • Entertainment & infotainment services
How the order process works by ‘phone ... • Caller dials PR single drop number • Connect to IVR and low cost intro • Freephone cross ref for more info • Press zero to proceed • Premium single drop charge applied • Caller keys in phone no. • Partial / full CLI match from network
Process continues ... • Caller records full name & address • Order Reference no. given • Call completes • All of call is recorded • Fulfilment < 30 days later • Cost appears on ‘phone bill
How the service works by modem • Go to web site • Select product and price • Download premium dialler software • Go through disclaimers, cost reminders etc. • Re-connect at premium rate • Enter customer details • Session completes
Why is PfP attractive as a new billing option ? • Kick start static growth in UK PRS • e-commerce growing - £2.8b in 1998 • Mail Order revenues currently £18b pa • Billing alternative to credit card - 49% of adults 18+ do not have a card • PfP ideal for micro payments • More secure than credit card • Replaces long call PfP - unrestricted currently
Key issues ... • Legal relationships • Consumer protection • Fraud • Unauthorised use • Bad debts • Commercial justification • Sharing of rev. for collection & billing • Potential charge backs
Background and objectives of: • PfP Committee Overview - merchant / SP perspective • ICSTIS PfP Working Party looks at : Consumer protection,legal relationship • Network PfP Working Party looks at : Fraud, Unauthorised use, Bad Debts, interconnect & revenue sharing
The PfP sequence of events • Feb ‘97 - first PfP group set up • May ‘99 - new PfP committee set up • June ‘99 - meetings & briefings • Sept ‘99 - ecommerce@itsbest.com • Nov ‘99 - BT & Access Control • Feb ‘00 - PfP report issued • Mar ‘00 - First Network PfP meeting
PfP sequence of events • April 00 - First ICSTIS / PfP meeting • June 00 - Second PfP Network meeting • July 00 - Second ICSTIS / PfP meeting & release of draft guidelines • Sept 00 - Presentation to TUFF • Sept 00 - Briefing meeting with OFTEL • Oct 00 - PfP main committee to meet
Consumer protectionProposed key features • Prior permission - application to ICSTIS • Controlled service • Trial 12 months • Compliance with DSD effective Oct. 00 • Abide by ICSTIS Code & Guidelines • Childrens’ services • Record all calls - keep for 12 months • 0907 prefix
What is the likely impact for service providers ? • Demonstrate reliable product fulfilment • SPs need to be visible • DSD has major implications • Need recording capability • Maintain database of customers’ orders • CLI tracking for checking for excessive spend / subscriber & fraud • Ultimately liable - bonds ?
Network issues being addressed by PfP Network Committee • Measures to control fraud • Measures to control unauthorised Use • Minimisation of bad debts • CLI release to SPs • Sharing of revenues for billing and collection • Credit and retentions • Endorsement of SPS for trial by networks
Summary / Immediate future • Need clarification / commitment from BT • OFTEL involvement monitoring process • Consultation on ICSTIS PfP guideline • Seek more involvement from other ONOs • Agree between networks fraud / abuse measures and circulate for implementation • Agree revenue sharing with networks
For further information... • Adam Maxted - 07005 34 0900 or • Updates available from ICSTIS website - visit www.icstis.org.uk