 -by Henry Newrick |
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| 0870 numbers are dead, or at least they soon will be, if far reaching changes to the UK non-geographic numbering system being proposed by Ofcom take effect. Spurred by media campaigns and wide ranging public criticism Ofcom has for some time been looking at the future of non geographic numbers, and in particular 0870. In the process it has consulted widely with industry leaders as well as ordinary members of the public. |
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| The result is one of the biggest phone numbering shake-ups seen for a long time in the telecoms industry. |
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| When they were first introduced in the UK about 9 years ago, 0870 numbers, costing the same as a BT long distance call, were called national rate numbers. At that time the standard BT rate for calling long distance within the UK was 6.73p minute + VAT. 0870 numbers provided a non-geographic alternative to standard geographic numbers and brought many advantages including the ability to be moved anywhere in the UK. In other words they offered a lifetime number to businesses no matter where they relocated in the UK. Having such a number meant that businesses were not forced to advise clients of a number change if they moved premises, something that inevitably occurred with a geographic number. Another benefit was that smaller businesses, often operating from equally small towns, could disguise their location and effectively compete with larger companies who were using 0870 or 0800 numbers. |
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| From a consumer’s viewpoint there was no disadvantage in calling a 0870 number because the cost was the same regardless of whether they called 0870 or the geographic code. |
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| That was then. |
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| Over the past few years the telecoms marketplace has become increasingly competitive with the result that rates have been dropping steadily so that now it is possible to make long distance calls to geographic numbers from one end of the country to the other for under 1p. Yet 0870 numbers have remained unchanged at 6.73p. It is an anomaly that has not escaped public attention. |
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| It is also well known among the public (thanks to extensive press coverage) that many companies are receiving a share of the call revenue that arises from these higher priced 0870 calls. That in itself wouldn’t be so bad if call waiting times were short, but many large companies and government departments with their sophisticated call queuing systems routinely keep callers on hold for up to an hour or more with endless repetitions of that perversely bland message ‘Your call is important to us. Please hold’ In the same way as speed cameras are seen as revenue generators for government, so too are 0870 numbers perceived as revenue generators for many companies and call centres. |
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| Something had to give – and now it has. |
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Under about to be published Ofcom proposals there are to be a number of changes to 0870 which, if adopted, will be effective from early 2007. These are.
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An end to revenue share. No longer will BT be required to share revenue with carriers who supply 0870 numbers to their clients or resellers, And BT being BT, it almost certainly won’t.
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0870 Numbers are to be charged at the same rate as geographic numbers offered by various carriers. Therefore if a carrier’s national geographic rate is 2p minute then it must also charge 2p minute to call an 0870 number unless the call is preceded by a recorded announcement telling the caller that the call is costing 7.9p minute (6.73p + VAT). The caller will then have the opportunity to cancel the call. |
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| The inescapable conclusion to this is that we are likely to see the demise of 0870 numbers as companies move either back to geographic numbers or to cheaper non-geographic alternatives such as 0845 (local call) which Ofcom has said will remain untouched for at least 2 years. One of the principal reasons for leaving 0845 untouched at this stage is that many ISPs use 0845 numbers for dial up internet access, and the small revenue share they receive is critical to maintaining their business models. |
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| A further reason that 0870 numbers are likely to disappear is that without revenue share, carriers are going to have to get their income from somewhere. This can either be through levying their customers a line rental and/or fees for incoming calls in much the same way as companies now pay for incoming 0800 calls. This being so some smaller companies may choose to use 0800, especially if the price differential is not that great. |
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| Another possibility is that many companies may move to take up 0844 numbers where calls cost just 4 or 5p minute at all times. With 0844 numbers a small revenue share is still likely. However, if this number range came into widespread use, then in due course there is the possibility of unfavourable media attention – especially once revenue sharing became known. |
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| While the biggest impact of the recent OFCOM review is clearly on 0870 numbers, other number ranges are also referred to. As previously noted 0845 numbers are to remain untouched for two years at which point they too will be reviewed. It is proposed that 0871 calls come under the jurisdiction of ICSTIS the agency responsible for policing premium rate 09 numbers. Adult calls made on 0871 numbers (where the revenue share can be up to 6p minute) are likely to be moved to premium rate 09 numbers. |
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| Severely affected will be companies that have invested heavily in building their brand or business around a particular phone number. Apart from the obvious benefits to the consumer in terms of lower call charges, printers and sign writers will also do well for the next few years as businesses set about changing their stationery and signage. Hardest hit will be businesses that specialised in the supply of 0870 numbers, often giving the numbers away, and relying solely on revenue share as their sole source of income. Already many resellers have formed into a pressure group hoping to Ofcom to take a softer stance, since from 2007 they won’t have a business and many clients will likely as not have any ongoing support for the remapping of numbers should this be necessary. |
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| All in all it will be a time of great change. |
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| Henry Newrick is the Managing Director of Team Telecom (Europe) Ltd, a company specialising in sourcing non geographic numbers for clients throughout the UK and overseas. Although his company will be affected by the above changes it will be more of a minor disruption than a major catastrophe. The above article was published in the October 2005 edition of Business Network the magazine of the Federation of Small Business. |
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