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News - May, 2009

087 Number Changes

As you may be aware, Ofcom has recently announced their final decisions regarding regulation of 0870 numbers and has also outlined the reclassification of 0871 numbers as 'Premium Rate Services' and will therefore come under the regulation of PhonepayPlus (formerly known as ICSTIS).

Both of these changes will be implemented on 1st August 2009.


Ofcom have now published their final statement on 0870 regulation.

In addition to the above announcement regarding 0870, both Ofcom and the Premium Services Regulator, PhonepayPlus have recently published details regarding the way in which 0871/2/3 numbers will be regulated from 1st August 2009.

The purpose of this document is to draw the attention of TTNC customers to these important upcoming changes and provide links to the information in full and relevant contact details.

TTNC customers are advised to seek independent legal advice regarding the possible implications of these changes to business practice and their contractual obligations.

0870 Numbers

Ofcom has been consulting on changes to 0870 numbers since the publication of their original proposed changes in April 2006. This review had been largely prompted by concerns that the regulatory regime surrounding calls to these numbers was no longer working as originally conceived. During the course of this review, public concern highlighted some confusion regarding 08 number charging - in particular, the cost of dialling an 0870 number.

Subsequent consultation has resulted in the announcement of a final statement by Ofcom in April 2009 which mandates the changes that will be enforced on this number range from 1st August 2009.

Overview of Changes to 0870

Ofcom's objective to improve Consumer protection, pricing transparency and to address some Industry problems that led to persistent disputes surrounding 0870 remains unchanged. To that extent, key proposals to address 0870 pricing awareness and obligations remain. The key material in the Ofcom statement is quoted below:

  1. A revised designation for 0870 calls in the National Telephone Numbering Plan;

    'The current designation for 0870 calls in the Plan is replaced with a new one that would establish the convention that 0870 calls should be charged at no more than the rates that callers pay for calls to geographic numbers. Where OCPs decide to charge more for 0870 calls they would be responsible for ensuring their customers understand what 0870 calls cost via additional price publication requirements in General Condition 14.'
  2. A Modification to General Condition 17 of the National Telephone Numbering Plan;

    'All CPs must comply with the General Conditions set by Ofcom. General Condition 17 specifies rules in relation to the allocation, adoption and use of telephone numbers, we want the new designation for 0870 calls to apply to all CPs. In order to achieve this, we proposed an amendment to paragraph 17.12 of General Condition 17 to require all CPs to comply with the designation for 0870 calls. We are implementing the modification we proposed in the Consultation, subject to minor changes to the wording of the modification.'
  3. A modification to the SMP Condition in the Market for Call Origination on Fixed Public Networks (removing 0870 from the NTS Condition);

    'Regulatory support for revenue sharing derives from the NTS Condition which is a regulation applied to BT as a remedy to its SMP in the market for call origination on fixed public narrowband networks. NTS Calls are defined in Part 1 of Schedule 1 of the Notification published in Annex A of the 2003 Narrowband Market Review. In order to remove regulatory support for revenue sharing on calls to 0870 numbers, we are modifying the definition of NTS Calls so as to take 0870 calls outside the scope of the NTS Condition.'
  4. A modification to General Condition 14;

    'We have modified specific price publication requirements applicable to OCPs given in the associated guidelines of General Condition 14 to ensure consumers are made aware where discount packages and bundles which include geographic calls also include or exclude 0870 calls. We also restrict OCPs from using the term 'national rate' in consumer communications unless they actually charge 0870 calls at geographic rates.'

Implications of the above Changes to 0870

The above measures are likely to result in a significant proportion of 0870 calls to be charged at geographic rates. The removal of 0870 from the NTS Condition effectively results in the removal of revenue share and the introduction of call delivery charges. Hence, from 1st August 2009 an existing 0870 Customer is likely to see their revenue share be replaced by an inbound call charge.

The exact details of new charging structures on 0870 will be published shortly as they will be influenced by the outcome of a termination rates dispute currently awaiting full resolution by Ofcom.

Implementation of changes to 0870

Ofcom have announced an implementation date of 1st August 2009, therefore it is imperative that Communication Providers ensure compliance with this regulation prior to this date. TTNC will shortly announce details of changes to 0870 charging structure (currently pending resolution of the 0870 termination rates dispute).

0871/2/3 Numbers

Numbers starting 0871, 0872 or 0873 are charged to callers at a range of prices between 6 to 10 pence per minute, hence, under current tariff arrangements it will usually cost more to dial a number from this range than the cost of calling an 0870 number. Revenue share will continue to be available on the 0871/2/3 number ranges. However, to help ensure appropriate use of these numbers and consumer awareness of the higher cost of dialling these numbers, Ofcom has decided that these numbers will be reclassified as 'Premium Rates Services' and therefore must abide with the Code of Practice for these services, as dictated by the regulator for these services - PhonepayPlus. PhonepayPlus regulation of 0871/2/3 numbers will take effect on 1st August 2009.

Overview of regulation for 0871/2/3 numbers

PhonepayPlus were originally created in 1986 and known as 'ICSTIS'. Whilst Ofcom have overall responsibility for the regulation of Premium Rate Services, PhonepayPlus are the designated body responsible for the promotion of and day to day running of these services. A not for profit organisation, they are funded by industry levy and backed by statutory law, with a mandate to deliver consumer protection where phone-paid services are charged to some form of telecoms account. Failure to take the necessary action, set out in the comments below, will result in your business being considered in breach of their Code and may result in sanctions being brought against you by PhonepayPlus. A code of practice and statement of application has been published for PhonepayPlus regulation of 0871/2/3 numbers.

Further information

TTNC

087 Number Update PDF
www.ttnc.co.uk/files/087_Number_Update.pdf

Information Provider Registration form for 0871 Numbers
www.ttnc.co.uk/files/0871_form.doc

Ofcom

0870 Statement Summary: http://www.ofcom.org.uk/consult/condocs/0870calls/0870statement/

0870 Statement in Full: http://www.ofcom.org.uk/consult/condocs/0870calls/0870statement/0870statement.pdf

PhonepayPlus

PRS Code of Practice: http://www.phonepayplus.org.uk/output/code-of-practice-1.aspx

0871/2/3 Statement of Application: http://www.phonepayplus.org.uk/upload/0871-Services-StatementOfApplication.pdf

About TTNC Limited

TTNC Limited is one of the UK's leading Communications Network Operators that provides Businesses and Individuals with Telephone Numbering Services, Inbound Call Management Services, and Voice over IP Services. TTNC is regulated by Ofcom and is also a member of PhonepayPlus.