Phone number rental prohibited – PTS intensifies supervision

The Swedish Post and Telecom Authority (PTS) is tightening its supervision of number usage in Sweden. Renting out telephone numbers to other operators is no longer permitted under PTS’s interpretation of the Swedish Electronic Communications Act (LEK). The aim is to improve traceability, ensure compliance with the rules and strengthen the conditions for law enforcement. In practice, number rental creates grey areas in the allocation of responsibility between authorisation holders, service providers and subscribers. PTS has already initiated supervision in this area.

Legal advice in telecoms and IT has become critical to avoid infringements in a rapidly shifting technical and regulatory environment. Our commercial lawyers closely monitor developments and support organisations seeking to ensure their operations are conducted in line with LEK.

What does the Swedish Electronic Communications Act say?

Under Chapter 4, Section 3 of LEK, an authorisation from PTS is required to use telephone numbers from the national numbering plan. This authorisation must be held by the entity that actually uses the numbers to provide electronic communications services to subscribers. PTS now clarifies that a mere subcontracting arrangement is not sufficient – the provision of the telephone number must occur in connection with the provision of electronic communications services.

Telephone numbers are treated as a limited resource and are therefore regulated. This means each number must be used in a manner that is traceable, efficient and lawful. When one entity rents numbers to another – which then uses them to offer services – an intermediary layer is created that hampers PTS’s supervision and undermines transparency. PTS cannot pre-assess the renter’s compliance with legal requirements, which in practice leaves certain actors operating outside the system.

Consequences of unlawful number rental

If you are an authorisation holder and allow other entities to use your numbers, you risk breaching LEK. PTS has made it clear that such arrangements are not compatible with the regulatory framework and will be subject to supervision. The consequences may be significant, especially for businesses whose model relies on granting others the use of numbers.

• Order to rectify: PTS may require the authorisation holder to cease rental immediately, and the numbers may, following the authority’s assessment, be transferred to the user.
• Penalty-backed orders: Orders may be combined with a penalty payment, making it costly to continue breaching the rules.
• Revocation of authorisation: In serious or repeated cases, the authorisation may be revoked – in practice depriving the actor of the right to use any numbers at all.

These interventions show PTS’s intent to regain control over how numbers are used in Sweden. It marks a clear move away from previously tolerated models where numbers were sublet – practices often seen alongside VoIP services, virtual numbering solutions and various technical arrangements.

Actions for companies that rent or rent out numbers

Actors that currently rent out or rent Swedish telephone numbers must now take steps to bring their arrangements into line with the law. This is not optional – it is a requirement under LEK.

• Those who rent out: If you are an authorisation holder but allow someone else to use your numbers, you must either cease the rental, apply to transfer the authorisation to the renter, or start using the numbers to provide electronic communications services to a subscriber. Any transfer can only take place following PTS’s examination and approval, where the authority verifies the recipient meets all requirements.
• Those who rent: If you offer services to subscribers using numbers for which you do not hold an authorisation yourself, you are using the numbers in breach of LEK. You need to apply for your own authorisation from PTS without delay or initiate a transfer from the authorisation holder.

PTS has published guidance explaining the process in detail and helping actors understand how authorisations, transfers and the return of numbers work. It is important to act proactively – PTS supervision can otherwise arrive unexpectedly and entail material consequences.

Need assistance?

At Morling Consulting, we have extensive experience supporting companies with supervision and compliance. We help assess whether your operations are affected, identify risk areas and develop action plans – whether you rent, hold an authorisation or are planning to apply.

Our commercial lawyers provide specialised support for complex authorisation structures, number transfers and regulatory engagement with PTS. We ensure your organisation can manage supervision and adapt to new requirements as oversight becomes increasingly active. We operate in and serve clients across Europe.