Sometime in summer 2008 the cost of calling a 0870 number will plummet (the original date was January 31st but this has been pushed forward due to bad planning by Ofcom). Currently charged at 7.91p per minute peak (including VAT), when the changeover occurs this will fall to around 2p per minute, a massive price drop of almost 75%. This is great news for the consumer, but potentially devastating to the business that has invested heavily in advertising its 0870 number(s) not only in the short term but also in ‘longer term’ media such as the Yellow Pages and various other directories. Many companies have built their businesses around a memorable 0870 number and have invested heavily in advertising it – so future strategy must be carefully thought through in order to minimise the impact.

When the changeover occurs, for those companies that received it, there will no longer be revenue share on 0870 numbers. So whether it’s 1p, 2p or 3p minute a company was getting, this will all end by summer 2008. Obviously, for the many organisations not receiving revenue share this is of little consequence.

The real blow however is that companies wishing to retain their 0870 numbers will have to pay up to 3.5p minute to receive calls. So not only will there be no revenue share but organisations seeking to retain 0870 number(s) will have the added cost of paying for incoming calls. BT has stated that it will be charging its customers 3.5p per minute (+ VAT) for a standard 0870 number or 4.5p per minute (+ VAT) for a 0870 number that is routed to different destinations.

For a company receiving say 50,000 minutes of incoming calls per month, instead of getting a revenue share of £1,000 (at 2p per minute) it will now have to pay £1,750 – £2,250 per month for the same calls which, on an annualised basis comes to £21,000 – £27,000. Obviously many companies generate far fewer minutes in which case the impact won’t be anywhere near as great but there are major corporates for whom 1 million minutes or more per month is not uncommon. The impact on these companies will be considerable and most are now planning for the changeover – if indeed they have not already switched.

It is the smaller business that has by and large failed to plan for these upcoming changes. This article should serve as a wake-up call if they are not to be caught by surprise on changeover date.

How the Changes Came About

Most businesses are aware of these changes and the reasons for them. They have been written about extensively elsewhere. For this reason I won’t repeat the details other than to say that the changes were brought about by a media driven consumer campaign protesting the price differential between calling a non-geographic 0870 number and a standard long distance geographic number (calls to which originally cost the same as calling 0870, but which is no longer the position). The case was strengthened by anecdotal evidence that some companies appeared to be keeping callers on hold for lengthy periods simply as a way of making money. In the end Ofcom was forced to respond. They held ‘consultations’ and then published their ‘findings’. Many would argue that they went over the top without considering all the ramifications, but the impact on organisations using 0870 numbers is going to be considerable.

For more information on these changes you might like to consult the following pages:

OFCOM http://www.ofcom.org.uk/media/news/2006/04/nr_20060419
http://www.ofcom.org.uk/media/mofaq/telecoms/nts/

Your Options if your business uses 0870 numbers

You have five options and these are:

1. Carry on as usual. Keep your existing 0870 number and receive calls as you do at the moment. You need to be something of a financial masochist to favour this approach but it is an option if, and here is the caveat, your carrier will allow you. It is also an option if your call volumes are very low so that your monthly charges may not be all that great. However, many carriers and resellers do not have the expensive billing software that will enable them to give you a computer generated monthly bill and for this reason may no longer support 0870 numbers. It is important that you check with your carrier as soon as possible.

2. Divert to a new non-geographic number after first terminating your 0870 number at a carrier-provided voice mailbox (using a recorded message to announce your new non-geographic number). Some carriers can provide this service. Others don’t. BT has announced that “due to the enormous volume of 0870 number changeovers, a Changed Number Announcement is unlikely to be available for everyone”. Your new non-geographic number options would be 0844 / 0845 or 0871 numbers. By following this course you retain the ‘goodwill’ built up in your 0870 numbers. Numbers beginning 03 are also a possible option but bear in mind that it will COST around 3p minute to receive 03 calls. Also, there is very little public awareness of them and I don’t know of any plans to mount a publicity campaign whether by Ofcom or any other organisation. So the public may be distrustful of an unfamiliar range. While some carriers are looking at these, many are not.

3. Divert to a new non-geographic number after first terminating your 0870 number at a voice mail box which you set up. Here you would get a new phone line with BT and connect to Call Minder or a cheap non-message taking Answering Machine. You then get your carrier to divert your 0870 number(s) to this line. The recorded message would then tell people to ring your new number which would be given in the recorded message. The disadvantage of this is that you will have the BT line rental of £41.15 per quarter, the Call Minder charge (£2.50 month) plus the cost of calls to the mailbox which should each be less than 1 minute. You should allow 3p-4p per call. The big advantage is that you lose none of the goodwill built up in your 0870 number.

4. Discontinue your 0870 number altogether and simply get a new 0844 / 0845 or 0871 number. This may be your only option if your carrier can’t provide you with a voice mailbox and you don’t want to set one up yourself. The obvious disadvantage is that you’ll lose the goodwill built up by your former use of the 0870 number and the cost of this could be significant. So, unless you feel there is no ‘goodwill’ in your 0870 number then treat this approach with care. Remember also that even if you think there is no value in your 0870 number, your competitors may think differently – and may very well seek to acquire your number should you decide to relinquish it.

5. Use a local geographic number such as 020; 01273. The big disadvantage here is that by giving up your 0870 number you will lose:

a. Any goodwill built around your number as well as future calls to that number unless you combine this approach with (3) above
b. The national identity that a 0870 number has given you
c. Portability, since the local number can only be moved within the area served by your local exchange. In major metropolitan areas this could mean a radius of no more than 1 or 2 miles from the exchange
d. Any special features that you may have enjoyed with your 0870 number such as call queuing, fax to email, IVR, etc.

http://www.0870ver.co.uk

We’re pleased to to announce the launch of our new 0870 web site www.0870ver.co.uk check it out!

The site provides a simple to follow process to help 0870 users to deal with the forth coming Ofcom changes.