Aug 20
Your old mobile phone may be worth more than you think.
Follow the link at the side of the page ‘Cash For Old Mobiles’ to find out more
Ofcom today set out proposals to provide clarity about the price of calls to 0870 numbers and strengthen consumer protection on calls to 0871 numbers. 0870 numbers are used by many businesses and organisations for a wide range of services including road traffic advice, customer services and financial services. This consultation is part of Ofcom’s wider review of so-called “non-geographic” telephone numbers (those not assigned by location) following consumer concerns over the lack of transparency about the cost of calls. Today’s consultation proposes that all calls to 0870 numbers should normally cost no more than calls to geographic numbers (01 or 02 numbers) and that 0870 calls should be included in communications providers’ call packages price plans on the same basis as geographic calls. This may significantly reduce the cost of calling these numbers. Currently 0870 calls are priced at levels that enable businesses and organisations to share the revenue generated by per-minute call charges. Ofcom’s proposals would effectively end revenue sharing on 0870 numbers when combined with other proposed changes to non-geographic call regulation. Communications providers that want to charge 0870 calls at rates above those for geographic numbers would be bound by strict rules about how prices are publicised and would be responsible for ensuring their customers know what 0870 calls cost. If communications providers do not comply with these rules, they could be subject to penalties including possible fines. Ofcom aims to have the proposed changes in place by the autumn.
Separately, Ofcom also published a consultation setting out proposals to improve consumer protection for calls to the most expensive 08 numbers (0871 numbers) by bringing these within the remit of the premium rate services regulator PhonepayPlus (formerly called ICSTIS). Under PhonepayPlus rules, businesses would be required to publish the price of calls in their advertising and promotional materials and PhonepayPlus would also investigate complaints about excessively long call queuing times only after the complaint has first been referred to the service provider. PhonepayPlus also has a range of powers that enable it to address scams quickly when they arise. Ofcom is now seeking views on the rules that PhonepayPlus will apply to 0871 numbers. Ofcom aims to publish a decision in summer 2008 and PhonepayPlus will start to regulate these numbers by the end of the year. The consultation on 0870 numbers can be found at: http://www.ofcom.org.uk/consult/condocs/0870calls/ The consultation on 0871 numbers can be found at: http://www.ofcom.org.uk/consult/condocs/087prs/ Ends. NOTES FOR EDITORS 1. Advice for consumers on 0870 numbers can be found at: http://www.ofcom.org.uk/consumeradvice/landline/costofcalls/08faq/ 2. In April 2006, Ofcom’s proposed that communications providers that want to charge more than the rate for calls to national rate geographic numbers would be required to provide a pre-announcement informing them of the cost of the call. However concerns were raised about disruption that this could cause to alarm services which use 0870 numbers and this proposal has not been taken forward.
Ofcom today announced proposals to curb unfair additional charges levied by communications providers on consumers’ bills.
The proposals are designed to ensure that extra charges are fair and that landline, broadband, mobile and pay-TV providers clearly market the true cost of their services.
Increasing competition has driven down headline prices and offered consumers more choice. However, falling headline prices are not the whole picture.
Consumers may also pay additional charges as part of complicated contract terms. Some providers make a range of additional charges, for example, when consumers choose to pay by cash or cheque rather than by Direct Debit; cancel a contract before the minimum period has finished; or make a late payment.
Ofcom is proposing to introduce new guidance for communications providers. This will spell out Ofcom’s view of the law and what communications providers have to do to meet their obligations under the Unfair Terms in Consumer Contract Regulations 1999 to ensure that additional charges are fair and transparent.
Once the guidance has been finalised, Ofcom is proposing to give communications providers three months to comply. Ofcom will then start an enforcement programme – where necessary through the courts.
The draft guidance has two main principles:
The draft guidance covers a number of specific areas including:
From mid-2008, BT will offer a new service – BT Basic – which offers a low cost home phone service to those on low incomes and pensioners that are in receipt of certain government benefits. BT Basic will not include an extra charge for consumers who do not pay by Direct Debit and, in contrast to previous social telephony products, will be available to consumers who have pre-pay mobile phones and/or broadband services.
Ofcom is seeking views on the draft guidance. The consultation is published at http://www.ofcom.org.uk/consult/condocs/addcharges and the closing date for responses is 8 May 2008. Ofcom expects to publish the final guidance in autumn 2008.
Ofcom Chief Executive Ed Richards said: “Consumers are benefiting from greater competition and lower prices. But for consumers to get an all round fair deal they need to know the full costs of the services they are buying. Our proposals will encourage companies to be open and straightforward about additional charges where they feel it is necessary to include them. In addition, our proposals mean that, in some cases, additional charges will be subject to clear limits which would provide direct protection for consumers”
Ends.
For further details please see Related Items.
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.
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.
Ofcom today confirmed measures to improve price transparency and strengthen consumer protection for calls to 0870 numbers. These changes are part of Ofcom’s final statement following its review of all chargeable 08 number ranges (known as Number Translation Services or NTS).
Ofcom’s approach is broadly in line with the proposals it published for public consultation in September 2005. Many of the 1,300 responses to this consultation highlighted the case for changes to 0870 and increased consumer protection.
In parallel with its work on NTS, Ofcom is currently consulting on a wider strategic review of UK telephone numbering. This proposes potentially important alternatives for organisations affected by changes to 0870 numbers. In particular Ofcom is proposing a new 03 number range as an alternative for country-wide non-geographic numbers, charged at the same rate as calling a geographic number.
Ofcom has decided that changes to 0870 calls will be introduced 18 months after the conclusion of the wider Numbering Review (due for publication in summer 2006). The 12 month timetable for 0870 changes proposed last September has been revised to ensure coordination with the outcome of the Ofcom’s Numbering Review and to allow sufficient time for industry to make the changes required.
As proposed in September 2005, Ofcom will require mobile and fixed-line providers (including payphones) to charge the same or less for 0870 calls as they do for national-rate calls to geographic numbers (starting 01 or 02). If providers wish to charge more for 0870 calls they will have to make a free-to-caller price pre-announcement at the start of the call.
This change is likely to significantly reduce the price of many calls to 0870 numbers. It will also mean that 0870 calls will generally be included in call packages. Currently daytime 0870 calls usually cost around 8 pence per minute from fixed-lines. Typical fixed-line call packages offer calls to geographic numbers at 3 pence per minute or less.
Organisations using 0870 currently have the opportunity to share the revenue generated by per minute call charges. In September 2005 Ofcom proposed changes to NTS call regulation which would effectively combine with lower call charges to end revenue sharing on 0870. Ofcom has decided to implement these proposals.
In line with the September 2005 proposals, Ofcom will extend the role of the premium rate regulator ICSTIS to include calls made to 0871 numbers. This will happen at the same time as changes on 0870 numbers. Ofcom will also extend ICSTIS’s remit to include all adult services regardless of price. Any adult services currently provided on 08 numbers will have to move to the designated 09 ranges.
Ofcom continues to recommend that public bodies should not use NTS numbers exclusively (ie: without giving equal prominence to a geographic alternative) especially when dealing with people on low incomes or other vulnerable groups.
The new 03 country-wide numbers, proposed as part of Ofcom’s Numbering Review, would be well suited to the needs of many public bodies currently using chargeable 08 numbers.
As proposed in September 2005, telephone providers will be required to provide customers with more comprehensive and accurate pricing information about all chargeable 08 numbers including 0845 and 0844. Ofcom does not intend to make other changes on 0845 or 0844 numbers at this stage.
However Ofcom will review 0845 numbers again within the next two years. Currently 0845 numbers are widely used to provide dial-up pay as you go internet access and Ofcom’s review will assess how much these services are being used in two years time.