We talk about the premiums passed to companies who use 084/087 numbers. But this isn’t the only aspect of these numbers which consumers are generally unaware of. The amount that the telcos, as a whole, benefit is more difficult to explain.

If we take the retail price of an 084/087/09 call and subtract the amount that is paid to the service provider (let’s assume that we know this for a moment) and subtract the amount it costs the caller for a call to a geographical number, the amount left is the real cost of the NTS (let’s call this amount x). I consider geographical call rate to be the datum as that is where these NTS calls tend to terminate. Geographical call costs are also transparent to the consumer.

In any particular case, the value of x is dependant on the originating call provider’s charges. That does not mean that the telco providing the NTS number does not benefit, because it does.

But the point here is the additional cost (x) incurred by the caller, in effect, for payment of the NTS. To me, this is why telcos are so hooked on selling NTS numbers to businesses, and not necessarily because of any technical benefits they might bring.

Surely, another point to be considered if we want to look at the "True Cost" of these premium phone calls is the cost that business itself has to bear? I seem to recall seeing a couple of posts from business people on this site, complaining of their extraordinarily high phone bills, and basically blaming the cost of phoning 0870 / 0845 / 0871 / 0844 numbers - and often being left in a queue. As in all business costs, if the business is forced to pay, it will, in turn, pass this cost on to the end consumer.

We all know that Britain is known overseas as 'Treasure Island' for the extortionate cost of so many items and services. There appear to be a host of reasons for this, but if businesses are forced to pay far, far more for telephone calls than they would in a truly deregulated and non-NGN environment, surely it must add to the end effect?

Even those businesses who think they are being very clever in accepting the telco's 30 pieces of silver, and hence becoming part of the problem, are then themselves hoisted by their own petard!!  >:(

The problem seems to me to be that in the not too distant future, every UK business will feel obliged to have a NGN, if only just to attempt to defray the extraordinary cost of doing business on the telephone in 'Rip-Off UK'. It's a never ending vicious spiral - and your totally ineffective regulator appears to condone it!

Well said mikeinnc, that just about summarises the whole scam and it's whiplash effect on businesses and ultimately consumers purchasing their products or services. Ultimately it adds to businesses' costs and degrades the UK's global competitiveness.  

This may be of interest. I had a text from o2 today and this address says it all...
http://www.o2.co.uk/specialnumbers. ::)

sherbert wrote on Aug 21^st, 2007 at 4:43pm:

This may be of interest. I had a text from o2 today and this address says it all... http://www.o2.co.uk/specialnumbers. ::)

Its good to finally see the confirmation in black and white that 03 numbers will be charged as geographic 01 and 02 numbers from a major mobile operator.

Equally the call charges levied for "Freephone" 0800 numbers in particular are utterly scandalous and reflect the total incompetence of the pathetic so called telecoms regulator.