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Live Premium Rate Telephone Services

Live services fall into four categories:
* CHATLINES
* LIVE ENTERTAINMENT SERVICES
* LIVE EXEMPT SERVICES
* LIVE COMMENTARIES
* VIRTUAL CHAT

The common feature of these services is that when people dial into the service
they speak to, or hear a "live" person, rather than a recorded message.

Phonepayplus Regulations
Unfortunately, because of past abuse by a minority of I.P.s, live services
operated as a premium rate service are strictly regulated by Phonepayplus Under the
terms of the Code no live service can be operated without prior written approval
from the Phonepayplus. The provisions covering prior permission for all live services
(regardless of price) are contained within sections 1.4 and 1.5 of the Phonepayplus
Live Conversation Services Code of Practice, March 1998 (The 'Live Code').
1.4 A Service Provider must not provide any Live Service unless it has first
obtained a certificate from Phonepayplus giving the Service Provider permission to
provide that service. Service Providers must not continue operating a live
service in the event that no certificate is in force.

Such approval will only be forthcoming if you fulfill the following requirements:
1. Employ Operators to continuously listen to all conversations.
2. Ensure that all lines are continuously recorded.
3. Use recording equipment approved by Phonepayplus.
4. Retain such recordings for a period of at least six months and deliver them to
Phonepayplus intact, within three working days of request.
5. At the time of entering into employment, every Operator must be given a
copy of the Live Code receive adequate training and on-the-job supervision.
6. On connection each caller must hear an introductory message giving details
of all the call costs, the name of the Service Provider.
7. Promotion of live services is restricted to persons over 18 years of age.
8. Anyone offering Live Services must
* lodge a bond with Phonepayplus as security against compensation claims and,
* join the Live Conversation Service Providers Compensations Fund.
The Compensation Fund payment is £7,500, plus a further deposit
determined by Phonepayplus of between £10,000 and £30,000.

To summarise. To operate a Live Service requires:
* Prior permission from Phonepayplus
* Properly trained operators
* Approved recording equipment which must record all live conversations
* Approved announcement equipment which must preface every call
* Join the Compensation Fund and pay Phonepayplus Bond - minimum cost £20,000

In what Phonepayplus considers to be appropriate cases it will not issue a certificate
unless it is satisfied that compensation arrangements exist (as set out in Part
Four of this Code) which will enable the prompt and effective provision of
compensation to any subscriber whose telephone has been the subject of
unauthorised use involving calls to the relevant Live Service(s) and in respect
of which the Adjudicator has made an award under Part Four of this Code.
Service providers should read the whole of the Live Code as well as the Phonepayplus
Code (eighth edition) which contains other provisions regarding live services.

CHATLINES
The technical name for this service is "Conferencing". Basically it allows a
number of people to dial into a single number and carry on a group
conversation. The service was originally designed for large companies who
wished to bring together several staff on the telephone for group discussions.
With the advent of Premium rate services "Chatlines" or Live Party Lines
emerged. These were aimed primarily at young people eager to chat to each
other about anything and everything. The services were an instant success and
quickly built up a vast following.

Unfortunately, the media decided to campaign against the services as being
aimed at teenagers whom they claimed were making the calls, and generating
huge telephone bills without parental authority. As a result, these services were
banned by OFTEL and you are not permitted to operate such services on
Premium Rate numbers. To operate a chatline, under current regulations, you
must offer a credit card, international, or or PSTN service.

However, Phonepayplus has agreed that chatline services should be permitted to
return on a trial basis. Until then I.P.s will be restricted to using other charging facilities.

OPERATING A CHATLINE
There are three alternatives:
* International Service
* Credit Card Service
* Normal phone line(s)

An International Service
The easiest way to operate a chatline is by promoting an international service.
This simply means advertising your service with international numbers. There
are a number of bureaus both in the U.K. and the U.S. who offer chatline
facilities, providing both the equipment and the live operators.

Credit Card Service
To operate such a service you require a credit card facility, plus the facilities of a
service bureau to provide the computers and personnel. Alternatively you could
establish you own chat line centre.

PSTN Service
A number of I.P.s have started operating chatlines on the standard national call
telephone service. The charge for these services can be as low as 3 pence a
minute. The I.P. receives as percentage of the national call charge from the
carrier. Because of the very high demand for chatline services, estimated at
millions of call minutes per month, these I.P.s although earning only a few pence
a minute are operating profitably.

To operate this type of service you will have to negotiate a deal with one of the
carriers to pay you a percentage of the charges for calls made to your service.
In addition you will either have to use a bureau to handle the calls, or establish
your own call centre.

Establishing Your Own Chatline Centre
If you wish to establish your own Chatline service in this country you can do so
by offering a credit card service. To do this you require a specialised piece of
equipment called a conferencing bridge. This allows 10 to 30 callers to be
connected together in a group conversation.

When callers dials into the service, they hear an introductory message welcoming
them. The caller is then be dropped into the group conversation. Where possible,
the operator will introduce each new caller as they come on line.

The Costs Of A Chatline Centre
* A computer with a 20/30 line conference card will cost in excess of £6,000.
If you are operating at a very low charge rate on the P.S.T.N. you will
probably require at least 120 lines to produce sufficient income for the
project to be viable.
* Line installation costs at 25 a line, plus monthly line rental approx £1,000 for
the year.
* Office rental charges, plus rates & taxes.
* Staff costs. You will need one operator per 20 lines. To operate Chatlines
you are required to employ a full time operator, 24 hours a day, 7 days a
week.

PROMOTING A PREMIUM RATE CHATLINE
Although you can promote Chatline services successfully in a whole range of
media. Experience suggests that the most cost effective media is regional late
night T.V. 10 second spots are available for as little as £15 to £30 on a monthly
contract.

LIVE ENTERTAINMENT SERVICES
Ever since the advent of the telephone people have used it to chat with each
other. People love to chat so much that they don't even mind talking to absolute
strangers. That is why the live chat services have always been a money
spinner when linked to a premium rate services.

Guys Love to Chat with Girls
Although chat services were originally aimed at the youth market, their immense
popularity and resulting high telephone bills soon had them banned. Today, live
services are restricted to adults. And despite what many people think, guys are
the number one chatters on the phone - especially if they have a friendly girl to
talk to.

Not only do the guys call, the call again and again. Once they know that they
can pick up the phone and call a friendly voice, they regularly call back. This is
why the live services are so profitable.

OPERATING A LIVE SERVICE
At its simplest level, a live service can be operated by having premium lines
installed in your premises and connected to individual handsets. Each line can
then be answered individually. This allows you to provide a live service without
the need for sophisticated computer equipment.

LIVE EXEMPT SERVICES
Although the majority of live services provide so called "entertainment", there
are a large number of live services providing information, marketing and
consultancy services. In many instances these services are exempt from the
Phonepayplus Live regulations.

Application for Exemption
If you are offering a live service which provides information, marketing or advice,
you can apply to OFCOM for an "exemption certificate".

This allows you to operate the service without complying with the regulations
laid down for the "live conversation" services. Namely your service is not
restricted to people over 21 years, nor do you have to record conversations or
provide an introductory message.

Examples of what would be considered exempt services
All types of professional people offering consultation - doctors, lawyers,
accountants, sales professionals, computer programmers, in fact anyone in the
consulting field. These services are ideal for those professionals who are sick
and tired of people calling them for free advice and information.

Joint ventures
Exempt services provide the perfect vehicle for those I.P.s who wish to set up
joint ventures. By identifying, both locally and nationally, the many professionals
whose advice and knowledge are in constant demand, the I.P. can offer to set
up and promote a telephone consultancy service for the busy professional.
As these services can now be charged out at £1.50 a minute, £90.00 an hour,
there is sufficient income to persuade high earning professionals to offer the
service. The I.P. in return receives a percentage of the call revenue.

Live consultancy services are already well established in the computer industry.
Clients with software or hardware problems can now call in and have an expert
deal with it immediately whilst they are on line.

Phonepayplus CODE FOR EXPERT OR SPECIALIST SERVICES
2.5.1 Live Services which provide information or advice involving the skill and
judgment of an expert or specialist must indicate clearly at the beginning of
each call the identity, current status and any relevant professional qualifications
and experience of the person(s) or organisation(s) supplying the specialist
information or advice.
2.5.2 If the information or advice is given by a person with no relevant
qualifications or experience, the service should explain its source and the
communication must be prefaced with a statement that the recipient of the
communication should not act upon such advice without first consulting a
suitably qualified practitioner in the particular field of the relevant specialism.
2.5.3 The information or advice should be conveyed in a manner that properly
reflects the seriousness of its subject matter.
For a more detailed look at the Phonepayplus regulations relating to Exempt Services
refer to the section in this Manual.

TELEPHONE SEMINARS
This is a presentation or teach-in that you give over the telephone. Participants
call a premium rate number, at a designated time, and everybody is patched in
to the same location via a conference bridge.

Telephone seminars have become a popular method for consultants and
speakers to spread their knowledge, without having to travel and make a live
presentations. More importantly it allows you to make your presentation to
people throughout the country, or even throughout the world.

Telephone seminars can be a single, hour long presentation. Or, and this is the
preferable choice, - a series of hour long sessions.

Record an audiotape programme
If you arrange a series of seminars, take the opportunity to create an audio
programme. Simply tape your seminars as you present them over the telephone,
but be sure to tape it with a quality recorder. This gives you a four hour
package with valuable content which can almost certainly be sold to members
of your telephone seminars, or to third parties who were unable to join in.

Distribute your audio programme
Clearly the first thing to do is to sell the tapes. However, this programme has a
number of other uses to generate publicity and sales.
* Offer them as a bonus to people who join your seminars or use your
consultancy services.
* Sell them through the audio shops or the the wholesalers.
* Use them as part of your sales package to potential customers.
* Transform them into RealAudio files http://www.realaudio.com, and offer the
seminars on your Web site as a downloadable file via a premium rate.
* Obtain publicity for your consultancy services and seminars by sending them
to various publications for review.
* Persuade other consultants to sell them.
* Offer them as a prize for taking a survey on your Web site or Premium Rate
service.

Developing your seminar
To develop a 4 part series should take you no more than 10-15 hours to develop
an outline and compile the basic information. If you already do presentations or
seminars, you can adapt the material you currently use for your telephone
seminar.

There are two main ways that you can profit from offering telephone seminars:
1. Charge people to attend your tele-seminar.
This is achieved by having the members access the seminar via a premium
rate number. You can have up to 30 people bridged to your service. If you
are charging at a reasonable 60p. a minute, a one hour seminar will gross
£1,000. You can of course charge up to £1.50 a minute with prior permission
from Phonepayplus. In which case you income would be £2,700 an hour.
If you presented a 4-week seminar and limited it to a maximum of 20
participants, at 60p. a minute, you'd make almost £3,000. Not bad for four
hours of talking on the phone.
2. Create a seminar pack
Once you have recorded your audio cassettes, you can add even more value
by creating booklets, and selling them as a set.
So there you have it. A complete formula for making a regular four figure
income, using the skills that you already possess. Create your seminar package
and take advantage of an opportunity that so many consultants pass up?

Full Bureau Service
For I.P.s whose wish to concentrate their resources on promoting their services, Many service bureaus offer a complete package of different live services. You have a choice of:

* One-to-One Adult service
* One-to-One Chat service
* One-to-One Gay Chat
* Psychic Service
* Tarot Service

If you opt for full bureau service with a full package of facilities, including bonding, recording, announcements and operators. All you are required to do is promote your service.

INDEPENDENT LIVE SERVICES
Service bureaus can provide I.P.s with their own live service on premium rate numbers. This allows you to promote a service and have the calls delivered to your phone anywhere in the U.K.

The service operates as follows. The Telecom delivers the calls to the service bureau call centre. The caller hears a brief announcement [as stipulated by Phonepayplus]. For example:

'Thank you for calling the Hot Line. The cost of this call is one pound per minute at all times. If you dialed this number by mistake, you may hang up now to avoid any charges. Otherwise hang on and you'll be connected right away.'

Calls are then delivered to the telephone number which you have specified. As the call is connected the service bureaus recording equipment is activated and will automatically continue to record until the call is terminated.

The cost of delivering the call is included in the percentage which service bureau retains from your call income. The whole process of receiving the call, making the announcement and then delivering it to your number will normally takes less than a minute.

Please note the calls directed to your phone(s), should be delivered to a separate telephone number so that when it rings you know, it is a premium rate call.

It is terrible public relations to leave callers hanging at the end of the line while you deal with other business. It costs they money whilst they're on hold. Being on hold is frustrating enough, without having to pay a pound per minute. Apart from which, undue delay in answering calls is a breach of the Phonepayplus Code and could result in a substantial penalty.

LIVE COMMENTARIES
Some of the most successful premium rate services are live commentaries on a whole range of sporting activities. Today, football and cricket clubs throughout the country use these services to provide their supporters with a "live commentary" of the matches which they are unable to attend in person.

The same "live commentaries" are provided for horse racing enthusiasts by William Hill, and many of the national newspapers. Live commentaries on the County Cricket matches, Wimbledon, professional golf and most national sporting events are now readily available over the premium rate network.

Throughout the country, on every match day, thousands of fans are dialling a
premium number to hear how well their team is doing.

Although many of the national and county sports events have already been tied
up by the large premium rate operators, there is still tremendous scope in this
section of the business. Identify any sports team or event which has a following,
even a local one, and you can create a very profitable service.

Nor are you restricted to sport. The same live service is equally applicable to
pop groups, religious, political or sales organisations,national or international
events. Provided you have a large number of supporters, eager to hear live
commentaries when they are unable to attend personally, you are in business.

A LIVE COMMENTARY SERVICE
You can provide a live commentary service via the service bureaus network. All you need is a standard telephone. Your commentator is patched directly into our Premium Rate computers, where the commentary can be heard by those who dial in to your service.

VIRTUAL CHAT SERVICES
Virtual Chat as distinct from Live Chat allows callers to dial into a very sophisticated computer programme which passes voice messages instantly from one caller to another. These services were introduced as an extension to
the dating services which allowed callers to leave recorded messages for others
to listen to. Now when people call in they can listen to messages placed by
people currently on line. If they sound interesting the caller sand send an instant
message to that person, and they in turn can instantly reply. It is very much like
talking on a CB radio link.

Men Love The Virtual Chat Service
This Virtual Chat service always has bubbly girls for the men who call in to chat to. Every male caller who dials in will always have be able to chat with a lovely girl. Every caller is guaranteed full satisfaction, treated as someone special, which means they stay on line longer, you make more money. You can Advertise Virtual Chat Anywhere

Virtual Chat is not classified as an Adult service. This means you are free to advertise the service in all publications - your local newspapers, magazines, radio and television, you can even distribute cards and leaflets. So if your ad budget is small, this is the service to promote. If you have funds available, advertise in the national newspapers, the Sun and the Daily Star bring a massive response.

But please be aware that your adverts for this service cannot be too raunchy.Phonepayplus has very strict rules on the content of any advertising in the media which is aimed at the general public.

continued ................ Premium Rate Competition Services ..............