Businesses and other organisations currently using 0870 numbers need to be aware of changes to pricing of these numbers due to come in to effect on 1st February 2008.
From this date revenue share (outpayments) will cease and at the same time the cost of calling 0870 numbers will be brought into line with the cost of calling normal 01 and 02 numbers.
The result of this for the owners of 0870 numbers will be as follows:
High volume users currently receiving outpayments from their 0870 service provider, will cease to receive such payments and instead be likely to face a per minute charge to continue to receive calls to their numbers.
Low volume users who currently enjoy the benefit of free or very low flat rate costs to use these numbers will from February 2008 face per minute call charges or monthly rentals of even both.
Full information on such charges may not be available until as late as 31 December 2007. This leaves very little time for owners of 0870 numbers to make a sensible decision as to the best way forward.
Although OFCOM promised an 18 month transition period, the clock started ticking when OFCOM made their decision to change the treatment of 0870s in the latter half of 2006. However, it has taken until early this year for agreement to be reached with the main telecommunications carriers and, as mentioned above, they still have not reached any collective agreement on how the cost of providing the service to number owners will be achieved once the cost to the caller has been significantly reduced.
WHY CHANGE 0870s?
Three main factors have contributed to consumer dissatisfaction with 0870 numbers:
1. The inappropriate use of such numbers by national and local government, some non-governmental organisations and some sectors of UK business where 0845 or even 0800 may have been more appropriate. In particlular those services where the consumer has no choice of who to call.
2. Uneven internal charging between telecommunications operators which has lead to some operators having to charge callers more than the BT national rate to call 0870 numbers, excessive charging by some mobile phone networks for calls to 0870 numbers and the exclusion of calls to 0870 numbers from the various all inclusive calling plans available.
3. Innaccurate and uninformed reporting by sections of the media who jumped upon and sensationalised the concept of “Rip Off Numbers”.
All of these factors combined made it politically imperitive for OFCOM to act to deal with consumer complaints and media pressure.
As A User of 0870 Numbers, What are Your Options?
1. Continue to use your 0870 number but be prepared for it to cost a lot more to operate.
2. OFCOM will be releasing a range of 03 numbers to eventually replace 0870s. The cost of calling these will be the same as 01 and 02 numbers. The cost of operating them will be similar to continuing to operate 0870s. The only difference being that we should know the operational costs of 03 numbers by May 2007. In addition, as yet there has been no national publicity educating the public about 03 numbers.
3. Users could switch to using 0845 numbers which are widely used as customer service numbers and are generally more recognised and accepted by consumers. These numbers attract little or no revenue share because of the lower cost of calling them, but they can be operated with full call management features for a low fixed monthly or annual cost. The only drawback of switching to 0845s is that OFCOM have already stated that they will be reviewing the use of 0845s within two years of the 0870 changes. It is possible that users could then find themselves facing the same dilema as they currently are with 0870s.
4. Revert back to using regular STD 01 and 02 numbers. This would mean losing all of the features and benefits of 08 numbers such as call rerouting, online call logging, call management, autoattendant etc.
5. Switch to using 0844 numbers which OFCOM have approved subject to operators publishing the costs of calling such numbers. These cost the same (or slightly more) to call than 0845 numbers, but have provision for some revenue share (but lower than current 0870) - usually subject to sufficient call volume.
6. Current 0870 operators wishing to maintain their current revenue could do so and even increase it by switching to 0871 numbers. These cost more to call than 0870 numbers and cost the same at all times - i.e. no lower costs at evenings and weekends. The disadvantage with 0871s is that OFCOM are changing their designation to premium rate numbers and placing their regulation under the ICSTIS organisation who currently regulate the use of 09 numbers. This will mean more legal compliance on the part of organisations choosing to switch from 0870 to 0871.
Which of these options you choose to take will depend upon a number of factors:
1. The cost of receiving calls to 0870 or 03 numbers after the changes take effect.
2. The current volume of calls being received to your 0870 number.
3. The importance and value to you of the various call management features you currently enjoy.
4. The importance to you of receiving some share of the revenue of incoming calls.
5. The relationship with your customers and their perception of the numbers you ask them to call.
If you wish to improve your customers’ perception of your service to them you may also wish to consider switching to using 0800 Freephone numbers. Post February 2008, you may find that the cost of operating a freephone number may be only slightly more than 0870 or 03 numbers, but with the added customer friendly benefit of removing the call charge from your customer completely.
This article is based on information available to me at the beginning of March 2007. The changes are ongoing and incomplete at present so obviously no responsibility can be accepted by us for any decision you take on the basis of this very general information.
As always, feel free to contact us for more personalised help with your particular situation.