Ofcom has issued its annual report. The part of the report dealing with NTS is shown below.

http://www.ofcom.org.uk/about/accoun/reports_plans/annrep0405/

Number Translation Services

In October 2004, Ofcom published new
proposals to address industry and
consumer concerns about Number
Translation Services (numbers beginning
084 or 087) used for pay-as-you-go
internet access, helpline enquiries,
telephone banking and thousands of other
consumer-facing services.
Whilst 0845 and 0870 numbers are
typically advertised as costing the
consumer the same as a local rate or
national rate call respectively, over the
years the growth of competition in fixedline
telecoms – and consequent
substantial reduction in average call costs
– means that those comparisons are no
longer valid. As a result, there is a
significant differential between the price
per minute of a call to an 0870 number
and the typical price per minute for a call
to a national-rate geographic number.
Ofcom therefore concluded that a lack of
transparency on costs and the potential for
confusion meant that the potential for
consumer detriment was high.
Additionally, telecommunications providers
were seeking clarity on the terms under
which BT should be obliged to offer call
termination for these services.
Ofcom published proposals for public
consultation which set out:
• the removal of links between BT’s 0845
and 0870 tariffs with BT local and
national rates;
• the introduction of new price ceilings
for calls on BT’s network, of four pence
per minute for calls to 0845 numbers
and eight pence per minute for calls to
0870;
• new guidance to prevent misleading
advertising linked to those numbers, in
co-operation with the Advertising
Standards Authority;
• new guidance for Government
departments and associated public
bodies on the appropriate use of these
numbers; and
• extending ICSTIS’s powers to include the
use of these numbers.

The consultation also sought views on
options for the future of revenue-sharing –
the mechanism by which the organisation
which is called via an 0845/0870 number
can choose to share some of the monies
raised with the telecoms provider
supplying the number.
In parallel Ofcom also consulted on its
finding that BT has Significant Market
Power in the NTS call termination market.
Ofcom has therefore proposed that BT be
required to provide call termination to
other companies on fair and reasonable
terms and conditions which were identical
to those offered to its own retail activities.
These consultations will be brought to
conclusion in 2005/6.