Interactive television specialist Cellcast is considering the consequences for its business following a possible Ofcom crackdown on premium rate services.

The broadcasting regulator this week proposed rules which would force numerous channels featuring services such as quiz and adult chat to either change or be reclassified as teleshopping. Some services, such as psychic chat and unencrypted adult chat, are already banned under rules for teleshopping channels.

Cellcast, as well as operating user-generated content channel Sumo.tv, provides mobile and participation TV applications to numerous broadcasters. The firm claims to be the world’s leading producer of live interactive pay-to-play programming.

In a statement yesterday Cellcast said it was reviewing what effect Ofcom's plans would have on its content and demand for its services.

Chief executive Andrew Wilson explained: "The technology driving convergence, together with the new tools facilitating audience participation, are blurring the lines between editorial and advertising.

"This is the challenge facing regulators addressing new media. Any regulation that protects the consumer is welcome and good for the interactive industry, its sustainability and growth. From an industry perspective, we trust that Ofcom will, when drawing up any new regulations, ensure that these create a level playing field for broadcasters of all sizes."