OFCOM changes to the 0870 Phone Number Range

Summary of OFCOM changes to 0870 Phone Numbers

Following on from the Strategic Review of the use of Number Translation Service (NTS), OFCOM has now confirmed some major changes, some of which will affect the use of 0870 Numbers;

• There will no longer be any Revenue on 0870 numbers by end of January 2008.
• Mobile and Fixed-Line providers have to charge the same or less for 0870 calls as they do for National Rate Calls to UK Geographic Numbers (01 or 02).

OFCOM's changes are mainly in line with their proposals published in the Public Consultation in September 2005, many of the responses to the Consultation highlighted the case for changes to 0870 Numbers and increased consumer protection.

These changes may have both Financial and Customer Service implications for Businesses and Organisations currently using 0870 Phone Numbers.

As a PECN Operator, TTNC has many Customers who use 0870 Phone Numbers that will be affected in one way or another. Please take time to read the following information we have put together so you have enough time to decide and plan what to do.

Following an industry meeting, Ofcom have advised TTNC and other Operators that the date to implement these changes has slipped to later in 2008.

Ofcom announces delay to changes to 0870 numbers

Next steps on 0870 numbers (New!)

Background information to the Pricing of 0870 Numbers

The dialling code 0870 is now defined By OFCOM as Special Services: Higher Rate. When originally introduced, it was to be charged at no more than BT's standard national rate charges of 7.91p daytime, 3.95p evening and 1.5p weekend.

The dialling Code 0870 is known is defined as a Special Services National Rate Code. When it was originally introduced, it was to be charged at no more than BT's standard national rate charges of 7.91p daytime, 3.95p evening and 1.5p weekend.

0870 is a Non Geographic Number; which means that it does not relate to any specific Geographic location in the United Kingdom like a standard Geographic (01 or 02) Telephone Number does. This feature appealed to many Businesses who wanted to use just one Telephone Number to their customers through which all their services could be accessed, regardless of the Location of the company offices.

Since the introduction of 0870 Numbers, most Call Rates offered by Telecom Operators have been significantly reduced, however, 0870 call charges have remained the same which means that some people see these Numbers as 'expensive' when calling them.

Revenue is earned on 0870 Numbers because the cost of calling a 0870 Number is lower than the Cost of Delivering the Call to UK Fixed Line Number. The Callers Operator passes on some of the Call Charges to TTNC, this Revenue enables Network Operators to provide better call handling features for Customer.

Background information of the OFCOM Ruling and Strategic Review

The anomaly in the 0870 Numbers pricing structure had attracted complaints from the public various consumer groups and in the summer of 2005, OFCOM carried out a full Strategic Review of the use of Number Translation Service (NTS).

During this review, Ofcom recognised that NTS has helped to develop a large number of useful services now available to UK customers. However, the review also raised a number of consumer concerns relating to whether NTS calls currently represent good value for money and the difficulties customers have in finding out how much these calls cost before making them.

After reviewing these issues in the mid 2006, OFCOM has confirmed the following changes to the UK Numbering Plan regarding NTS.

• Ofcom will stop call revenue sharing on 0870 Numbers by January 2008.
• OFCOM will require mobile and fixed-line providers to charge the same or less for 0870 calls as they do for national-rate calls to Geographic Numbers (starting 01 or 02).
• New UK wide 03 Number range to be introduced (no revenue share allowed)
• 0871 Numbers will be regulated by ICSTIS (Jan 2008)
• 0844 Numbers - No change to this Number range
• 0845 Numbers - Ofcom to review within 2 years

What are the available options to existing 0870 Number users?

At this moment in time, we have not worked out any Charges for 0870 Numbers as BT/OFCOM have not published any wholesale charges for the period after Jan 2008. We are expecting to introduce a Per Minute Call Routing Charges similar to Geographic Numbers, but this has not been confirmed yet.

In deciding how to proceed, customers should consider the following:

• Can you change your 0870 Number without a having a major upon your customers?
• Do you want to offer your customers the ability to call your business for No Charge by using a Freephone 0800 or 0808 Number?
• Do you want to offer your customers a reduced rate for calling your business by using 0845 or 0844 Numbers?

• Do you wish to retain or earn Call Share Revenue?
• Will you accept zero Revenue + pay Call Charges in order to keep your 0870 Number?
• What is the cost of re-printing material if you migrate from 0870 to another Number?

Actions

03 UK-Wide Numbers

As part of changes to NTS and the Numbering Plan, OFCOM is introducing a new UK-Wide Number Range; 03 Numbers are being introduced as an alternative to chargeable 08 Numbers like 0870. Calls to 03 Numbers will cost the same as calls to Geographic Numbers (starting 01 or 02), and be included as part of any inclusive call minutes or discount schemes in the same way as Geographic calls.

Organisations using 03 Numbers will offer consumers a single national point of contact without involving additional charges for the service, over and above the cost of calls to Geographic Numbers.

TTNC is expected to be allocated with about 22 different 03 Number Ranges by the end of March 2007, these Numbers should be fully operational by June 2007. If you currently use a TTNC 0870 Number, then you will be able to get a similar 0370 Number, for instance, if you were using 0870 468 1000, we will also have 0370 468 1000 available.

Your Next Step

You should now start considering your options carefully, particularly if you do not want to start paying for Call Charges or receive a reduction in Call Share Revenue payments.

Please email us at sales@ttnc.co.uk with any questions you may have about the changes to 0870 Numbers or if you are interested in using a 03 Number.