PhonepayPlus Announce Zero Increase in Levy

Following consultation with industry, PhonepayPlus reduced its proposed 2009/10 budget to 0.0% on 2008/9. This was subsequently presented to, and approved by, the Ofcom Board.

 As a result, PhonepayPlus has announced that its levy for 2009/10 will be 0.48%. The levy applies to all outpayments payable by network operators to service providers in respect of revenue generated by premium rate services, and is calculated as a proportion of every outpayment to ensure that PhonepayPlus continues to receive adequate funding to carry out its activities, as required by Section 121 Communications Act 2003.

Phonepayplus had previously announcement in it business plan last year that the regulatory agency was planning to increase its levy by 2.4%.

Concerned by the impact that the increase would have on the industry the Premium Rate Association met twice in January with Paul Whiteing, CEO at PhonepayPlus, to discuss the budget and at those meetings put forward a number of cost saving measures.

On hearing the news Premium Rate Association Chief Executive Suzanne Gillies commented "We are delighted that PhonepayPlus has listened to our concerns and has now made adjustments to its budgets."