0870 Meltdown Predicted  07/11/05
Earning revenue on 0870 numbers is likely to cease next year as a result of an Ofcom shake-up of number translation services. If you’re an 0870 user, not only do you stand to lose this revenue stream, it’s widely anticipated that rental charges will be introduced enabling service providers to recoup some of their lost revenue. It is also likely that 0871 numbers will be re-classified as premium rate numbers at the same time.

Jacqui Brookes, CEO, Federation of Communication Services (FCS) told Comms Business Magazine that she has advised her members of the impending changes.

“Presently, Ofcom is consulting on changes to the number ranges 087 and 084. Among the proposals is to revert the cost of calling a 0870 number to the relevant national call rate. Many British businesses value the use of 0870 numbers because the number can be retained when the company moves premises. In addition businesses can generate income by a revenue share with their telecoms supplier each time a call to the 0870 number is made.

This and several other proposals for changing the management and regulation of “non-geographic numbers” are contained within the consultation document “Number Translation Services: A way forward” which can be found at www.ofcom.org.uk/consult/condocs/nts_forward.”

Matthew Sime, Director of Bury based NGN supplier Business Communications told Comms Business Magazine, “This is a very serious situation for companies like ourselves and our customers who have come to rely on the shared income from 0870 numbers. It is likely that many of these companies will go out of business or face serious financial difficulties.” “There have been many complaints against 0870 numbers from people calling government departmental help lines which has raised the issue of shared revenues on to the Ofcom radar. We believe the changes are likely to be 18 months away and that discussions are still under way. It is possible that only Government bodies will be forced to change but wholesale change will affect hundreds, if not thousands of business’ in the UK.”

In the UK many companies have 0870 numbers as their main line. Number changes will cause them additional cost through having to change stationary and other materials bearing those numbers.

Kind regards all,

Göetz

wrote on Nov 7^th, 2005 at 10:33pm:

Matthew Sime, Director of Bury based NGN supplier Business Communications told Comms Business Magazine, “This is a very serious situation for companies like ourselves and our customers who have come to rely on the shared income from 0870 numbers.

So sad - what a shame. An 'industry' that has extracted more than one billion pounds from customers under the pretext of 'national rate' lies is about to see its revenue stream decline.

Sob! Sob! I couldn't stop crying when I read this - I feel so sorry for them. BoHo...  :'(

A copy of the epistle above should be included on the mass e-mailout ( it illustrates exactly what the '0870 Industry' is all about ) with a brief explanation of what Ofcom are ACTUALLY intending to do (given the public lethargy).

Yes if it actually happens we should all go into 2 weeks deep mourning for them.

Don't forget though that what Ofcom is proposing is to allow the Disguised Premium  scam to continue with 0870 numbers if they have a recorded announcement informing callers that the call will be charged at the higher rate. This just means that they will only have to implement these announcements to continue the rip-off business as it is!

Most businesses justify their 0870, by saying their revenue from them is "very small compared to the cost of running the business", and other excuses include "We introduced 0870 to make our business look more professional, with an easy to use number" and "If we change location, we don't have to change our number", so there shouldn't be any difference should there!!

And as for changing stationary, well if 0870 is changed to true National rate, then what is the problem, after all, didn't they use 0870 to supply an easy to remember number, and avoid the inconvenience of changing stationary, and isn't the revenue minimal.

Looks like they're now admitting that they can't survive without ripping us off with premium rate numbers.  Perhaps these businesses will feel better, once their own telephone bills are reduced by not calling 0870 numbers for outgoing calls.

They are of course welcome to use 090 numbers, and let the customer choose whether they want to phone them, or take their business elsewhere!!