Million 2-1 Director Scott Davies has told Mobile Marketing that the Ofcom report into premium-rate phone line scandals, released yesterday, makes clear the need for a clear regulatory framework for the premium rate industry.
The report found that found some broadcasters were in denial about their responsibilities, and revealed a systemic failure to comply with rules. In particular, the report suggests that there is a critical lack of transparency in the relationships between service providers, producers and broadcasters, leading to a lack of clarity about legal responsibilities.
Many of the recommendations in Ofcoms report are based around having legally compliant systems, processes and audit trails says Davies. This is the first of two ticking bombs that will affect the premium rate/broadcast industry. Firstly, the report highlights problems with the regulatory framework, something that Million 2-1 has been talking about for the past six months. There is clearly a need for a clear regulatory framework that defines roles both between ICSTIS and Ofcom, and sets out the responsibilities of broadcasters and service providers, so that no confusion exists and the kind of scandals that weve seen in the last six months could not happen.
Secondly, the forthcoming Gambling Act that is due to come into force in September 2007 will re-define many  premium rate formats as games of chance and therefore make the operation of them by broadcasters and service providers illegal, unless they have an External Lottery License. 
As a lottery licence holder, we welcome regulation and the forthcoming Gambling Act, since it is expected that much of the confusion around premium rate competitions and quizzes will be dealt a final, clarifying blow when it comes into force in September, giving a real opportunity to return to high revenue streams and customer confidence.