087 Number Update

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 have now published their final statement on 0870 regulation.

• The final statement regarding changes to 0870 numbers can be viewed in full here: http://www.ofcom.org.uk/consult/condocs/0870calls/0870statement/

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.

• Full details regarding the regulation of 0871/2/3 numbers can be viewed here: http://www.ofcom.org.uk/consult/condocs/087prs/087statement/

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.

Communications to End Customers

1. Publication of prices;
   
   Special attention should be paid to General Condition 14 regarding the obligations of Communications Providers in terms of consumer awareness about the cost of calling 0870 numbers. On publication of the final pricing details, Communications Providers will 'bear the primary responsibility for ensuring that Consumers have a sufficient understanding of call prices to enable them to make rational decisions about using them.'
2. Guidance for businesses and organisations using 0870 numbers;
   
   
   • Those currently utilising the 0870 number range should be made aware of the pending changes in charging structure and this may be a good opportunity to review their customer contact strategy.
   • If retaining revenue share is of significance to the Customer, they may be best advised to migrate to an 0844 number which continues to offer revenue share opportunities whilst not coming under the regulation obligations of 0871/2/3/ numbers (which takes effect from 1st August 2009).
   • Businesses may be able to increase revenue share by migrating to an 0871/2/3 number range which are charged to the caller at a range of bandings up to 10ppm. This option does have implications for the end customer and service provider in terms of compliance with the PhonepayPlus Code of Practice.
   • For Public Sector or voluntary organisations, 03 numbers may offer an attractive alternative as calls to these numbers are linked to geographic number rates and the fact that the 030 range is only available to this sector may help to build an identity for this range of numbers.
   • For many Customers, the main benefit of an 0870 number may be the fact that it is a 'Number Translation Service' which means that they have access to re-routing their inbound calls whenever required. In this case, a TTNC geographic inbound number offers the flexibility of an 08 number without having to charge the caller anything extra in making that call.

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.

There are various obligations set out in the PhonepayPlus Code of Practice which apply to a) Network operators, b) Service providers, and c) Information Providers.

Telecoms entities are broadly classified as follows:

• Network Operators - Network Operators include major networks such as BT, Cable & Wireless or Virgin Media.
• Service Provider - A Service Provider is an individual, company or organisation that contracts directly with a network operator but is not itself a network operator. The service provider holds the main responsibility for ensuring that the content and promotion of a service comply with the PhonepayPlus Code of Practice. Service providers include resellers and aggregators of 087 number ranges.
• Information Provider - Information providers create the content for phone-paid services. In the case of services running on 087 ranges, this might be the provider of a technical helpline or customer service line.

Registration Instructions - Please complete the following steps by 1st of July, 2009

1. TTNC customers using 0871 Numbers are required to register as an Information Provider via the PhonepayPlus website; http://www.phonepayplus.org.uk/output/Register-as-an-Information-Provider.aspx
2. Live professional advice services, interactive broadcast services and some live entertainment services operating over 0871 numbers are required to apply for "Prior Permission" to operate those services, you can also do that via the PhonepayPlus website; http://www.phonepayplus.org.uk/output/Prior-permission.aspx
3. On completion of registration with PhonepayPlus you will need to supply us with a copy of those details by completing and returning our Information Provider Registration form which can be downloaded from; www.ttnc.co.uk/files/0871_form.doc

More information about Prior Permission can be sought by contacting the Industry Support Team: compliance@phonepayplus.org.uk or 0845 026 1060 or by visiting this page; http://www.phonepayplus.org.uk/output/Prior-permission.aspx

Further information

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

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

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