Hello,

I was having a chat with a friend a few days ago, and something amused me a little.  So I thought I'd share it with you.

I remember years ago, that several companies had started using Non-Geographic Numbers (NGN's) such as Ericsson Phones (0990 237237) and HMV with their FAMOUS 0990 number (0990 33 45 78).

Also several companies used 0345 numbers, National Rail Enquiries (0345 48 49 50).  Then the BIG Number changed occured, and they all changed to 08 numbers: 0845/0870.  Gradually we had an influx of changes including the general use of the "new" 0843/44 range and 0871/2/3 range.  

The Ofcom got round to a sensible way of thinking and introduced 03 numbers, charged at a standard rate like 01/02 numbers.

So IF all those with 08 numbers changed to 03 numbers it would be like going back in time:

National Rail Enquiries would be: 03457 48 49 50
NHS Direct: 0345 46 47
Sony Ericsson: 03705 237 237

And of course Traveline, once was: 0870 608 2 608, then 0871 200 22 33, could now be 0371 or 0370 or even something else!

Lets hope these companies start to take note, and lets KEEP campaigning to encourage them to change!

:)

Once upon a time, BT was a monopoly provider of telephone services. Once it became independent and open to competition it was regulated as to what it charged. For calls to non-geographic numbers BT, and others providing call origination services, had to share the call revenue with the users of those numbers. This was in the name of encouraging new entrants to provide competition for BT and to stimulate technical and commercial innovation. BT was not allowed to make any money as the originator of such calls, whereas other providers could charge whatever they believed that the market would bear.

Where the level of the on-payment kept the charge to the caller at around the normal BT rates (now the 084 range) no additional regulation was thought necessary. Where callers paid a "premium", rules were imposed on providers of "Premium Rate Services". Being seen to have "Significant Market Presence" BT could be regulated, on the assumption that its competitors would be forced to match its rates. Mobile providers were not regulated, in the belief that they needed all the money they could get to develop this "vital" element of a service-driven economy and they operated in a fiercely competitive market, which would ensure that prices were the lowest possible.

Although views have changed greatly, this is still essentially the regulatory position that exists today. Only BT is regulated as an originator of revenue sharing calls, despite the fact that it only originates less than 25% of telephone calls made in the UK. All providers are regulated in their charges for calling the 03 range, which cannot exceed that for calling a geographic number. There is no additional subsidy available to users of 03 numbers.

Ofcom is now looking to address the situation for all originators of calls to what are now known as "Non Geographic Call Services" (NGCS). BT can no longer be regulated exclusively in this area, as its market presence has ceased to be formally regarded as "significant" and nearly all other rigid regulation of its activities has been lifted. Extended powers of price regulation over all providers are found in an EU Directive which must be incorporated into UK law by early in 2011. Ofcom will be announcing its proposed changes in the Autumn, following a "call for input" earlier this year.

The continuing perverse charges levied by BT (e.g. low rates for calls to 0845 numbers), must be recognised as being caused by obsolescent regulation and affecting a limited number of callers - a recent Ofcom report confirmed that 26% of group DE households rely on mobile phones for all their telephone usage. The subsidy obtained from use of 084 numbers is now invariably at the expense of callers (BT makes a profit overall, so non-profitable services must be subsidised by the rates its customers pay on other services).

This is the message that must be communicated to those who must use 03 numbers, where a non-geographic number is required, unless they are happy to justify themselves taking money from callers. As this charming piece pointed out, users of 084 numbers are in the same business as other providers of premium rate numbers, even though they can, for now, deny being covered by the formal definition of "Premium Rate Services".

Totally agree with your postings, suspect the companies/ services using 084 numbers etc...don,t really care that much about the customer and who pays what, if they did they would not be applying such numbers over the landline numbers and it seems that the introduction of these numbers was revenue orientated, most things are revenue orientated in the world we all live in.....which is a topic for perhaps another web page !

I was wondering something about calls to 08 numbers (excluding 0800/0808).

I am aware there is a call set up fee from most if not ALL landline providers (BT is for the moment 9.9p) for calls to NGN numbers (perhaps excluding 0845/0870).

How does this work for callers on older line rental packages?? For example I have an inclusive package from BT (Anytime), so a call to an 0845 number is "inclusive" but what if I was not on a call plan, would it be "cheaper" to call this instead of an 01/02 number? Does it still attract the call set up fee?

Just wondered for some reference info...

Also is it at all possible that it's "cheaper" to call an 0844 number as apposed to an 01/02 number? There is a serious point to my question.

Thanks in Advance.

CJT-80 wrote on Sep 14^th, 2010 at 10:13am:

... Thanks in Advance.

With effect from 1 October 2010 those with BT Call Plans, but making weekday daytime calls outside the period covered by their plan will pay a setup fee of 10.9p plus:

01/02/03: 6.4p per minute
0844: (up to) 5p per minute
0845: 2p per minute

The first (and the setup fee) is an unregulated "penalty" charge, for going outside the Call Plan. These continue to be increased at a steady rate of 30% per annum, at every price change.
The second (along with all rates for PRS numbers) is fixed by regulation in absolute terms.
The third essentially represents the amount that is paid on in revenue share, because BT is prohibited from making money on these calls.

The regulation of 084 (and PRS) charges does not apply to any other telephone service provider, at present.

Those who mirror BT by charging less for 0845 calls (and giving them away in packages) are suffering a loss for the sake of competing with BT.

Thank you SCV,

can I take that as "most" customers not on call plans and those on older calling schemes?  It's just a case to put to the company I work for as to WHY they should switch back to an 01 or 03 number as apposed to their continued use of 0844 numbers, however based on your call summery those not on calling plans with effect from 01/10/10 will find it cheaper to call an 0844 number than an 01 number.

Not a good sign I feel,

Further to my previous posting giving BT rates.

The most recent Ofcom figures show that BT originates 31.4% of residential telephone calls (from landlines and mobiles).

BT reported last year that 10% of its customers subscribe to the Unlimited Anytime call plan. The continuing rise in "penalty charges" should soon ensure that all those who use a BT landline during the day will subscribe to that plan.

This will further serve to emphasise the irrelevance of the 6.4p figure to any serious discussion about "the standard cost of a telephone call".

P.S. This second posting anticipated the further question. It was being drafted whilst the second question was posted.

The rate for non-inclusive 01/02/03 calls overtook the rate for the most expensive 0844 calls in November last year.

The point which must be emphasised is that your BT Call Plan is for all of the times when you make calls. Anytime is not some fancy expensive deal for those who make lots of calls, it is for anyone who uses their phone during the "daytime".

We can discuss whether the cost of using the telephone is more expensive than it should be and the differences between the various providers. When addressing the issue of the cost of calling non-geographic numbers it is vital that we do not allow ourselves or others to be distracted by the level of BT "penalty charges".

CJT-80 wrote on Sep 14^th, 2010 at 10:42am:

can I take that as "most" customers not on call plans and those on older calling schemes?  It's just a case to put to the company I work for as to WHY they should switch back to an 01 or 03 number as apposed to their continued use of 0844 numbers, however based on your call summery those not on calling plans with effect from 01/10/10 will find it cheaper to call an 0844 number than an 01 number.

Any organisation that chooses to us a 0844 (or 0845) number on the basis that is cheaper to call than a (non-inclusive) geographic or 03 number is advocating its customers (callers) subscribe to BT or another telephone service provider that discounts the cost of calls to 0844/5 numbers.

The review of non-geographic numbers that Ofcom is currently working on is likely to result in the removal of the regulation which keeps BT's 0844 retail call charges so low. Thus, the BT retail call price for 0844 calls are likely to increase in the future and organisations that use them should be mindful of this.