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British telecom body to probe calls to India
Wednesday, 05 May 2004, 19:30 IST
LONDON: Britain's communication regulatory body is investigating the pre-paid telephone card market for irregularities in offering calls to overseas destinations, including India.
Ofcom, the new communications regulator, has opened an investigation because it is worried customers are being overcharged for making calls overseas.
The regulator has named four large companies that it is looking into, including Alpha Telecom, one of the biggest sellers of pre-paid calling cards and accounts that allow customers to make cheap calls.
The other three are Vectone Group, Primus Telecommunications and Cheers International.
An Ofcom spokesman said the regulator had undertaken the investigation on its own initiative after being contacted by several customers informally about the cards.
It started looking at the issue covertly but is now formally looking at the companies.
The probe will examine whether customers are being overcharged and whether the cards are expiring earlier than the date printed on them. There is also an issue with unexplained credit loss on these cards.
Pre-paid calling cards represent a fast-growing sector among expatriates seeking to contact their families. Most purchases are made in cash and by those who are on a low income.
The providers of the cards buy telecom capacity and sell it, offering what seem to be better rates than carriers such as BT.
Reports said that Alpha Telecom's website, for instance, offers calls to India at five pence a minute while BT charges 65 pence at peak daytime rates.
Cards are typically bought at newsagents and customers dial a number on a card and then a personal identification number.
Ofcom is understood to have found instances where customers are charged for more time than they have used or of cards that say they expires in May but actually expire two or three weeks early.
Source: IANS
Source: IANS