Premium-rate phone service providers challenge new ComReg rules

Irish providers of premium rate services such as competitions, chat lines and ringtones claim new regulations will wipe out their businesses.

A group of operators have initiated a challenge to Comreg and a new code of practice which is due to come into force next week.

Video clips, ringtones, charity donations and text-based competitions are among the premium rate services people use everyday.

Irish operators say Comreg's new code of practice for the industry is disproportionate, vague and unreasonable and they want the High Court to stall it from coming into force next week.

Umbrella group IPPSA, along with Dublin based Modeva Interactive and Zamano Public, say the new code radically transforms the regulatory landscape and will increase costs, while sanctions for breaching the rules have gone from light to potentially criminal.

They argue the rules will create a two-tier system because the code will apply to Irish operators but not necessarily to European operators who provide certain premium rate services in Ireland.