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OFCOM have announced that the rebate currently paid against 0870 numbers will shortly come to an end.
The full text of the decision can be found at:
http://www.ofcom.org.uk/consult/condocs/0870calls/0870statement/0870statement.pdf
Background to the Pricing of 0870 National Rate Numbers
The dialling code 0870 is defined by OFCOM as Special Services: Higher Rate. When originally introduced, it was to be charged at no more than BT's standard national rate charges of 7.91p daytime, 3.95p evening and 1.5p weekend.
It is a non-geographic number (NGN); meaning it does not relate to any specific location in the United Kingdom like a standard geographic (01 or 02) telephone number does. This feature appealed to many businesses who were allowed to advertise just one telephone number to their customers through which all their services could be accessed regardless of the location of the company offices.
Over time call rates offered by telecom networks have dramatically reduced but the 0870 call charge was “frozen” in time. The difference between the call charge and the reducing network cost of delivering the call allowed a call payment (a rebate) to be made to the company owning the 0870 telephone number.
Many businesses utiling 0870 numbers took advantage of these revenues to provide better call handling features for customer service via interactive voce recognition (IVR) telephone systems.
The uptake of of 0870 was widespread throughout the UK, being used by Government bodies and the BBC.
OFCOM delayed the changes Feb 2008 due to issues with their implementation and the impact on some services, with a further announcement would expected in Spring 2008, this was again delayed for review and the review finally was completed end of April 2009 with comments required by 7th May 2009, commencement date set to 1st August 2009.
Why Change
This change has been implemented by Ofcom in response to many hundreds of complaints from the general public and other parties. Ofcom’s main reason for this decision appears to be to reunite the link between the term ‘national rate’ and the 0870 code that they feel has been broken by the fall in the general cost of a call to a normal geographic number. Callagenix find this argument spurious as the ruling does not, for example, stop mobile companies from charging up to 40p per minute to call 0870 numbers – this will still be perfectly valid as long as they provide the same prominence to this tariff as they do to their charges to call normal landlines . Consequently it would appear that the main abusers of the system are allowed to continue whilst the owners and operators of the numbers are penalised.
Although it is probably too late to change the decision by Ofcom we understand that if enough pressure is brought to bear then Ofcom are duty bound to investigate and respond to the counter complaints. To this end if you feel you wish to make your points regarding this decision we would urge you to address your comments to the people concerned within Ofcom. Their details are:
Ed.richards@ofcom.org.uk - Project Director for the 0870 decision
Gareth.davies@ofcom.org.uk - Project Coordinator for 0870 decision
Geoff.brighton@ofcom.org.uk - Project Officer for 0870 decision
If you already have an 0870 number and would like to take advantage of our call rates or revenues, or use our intelligent phone services, you may be able to port your number to us. For more details please click here.
Find out more...
- What are your 0870 options
- 0870 Pricing
- Package Explanation
- Payment Options
- Details of OFCOM ruling and explanation.
Back to OFCOM changes to 0870 numbers
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