Another Telecom Outfit that needs to get its facts right.

"0845      Offers your customers local rate or even free calls wherever they are."      

http://www.o2.co.uk/business/products-and-services/landline-and-telephony/telemarketingnumbers

Unfortunately, as far as BT and 0845 are concerned, then it is sort of true.

BT's call price for 0845 numbers is exactly the same as a local 01/02 call on the BT tariff where the caller has no free minutes at all.

This tariff still exists, but has no-one on it because all callers were moved to at least the BT Weekend package deal some years ago. It's, in effect, a 'nominal' local rate.

It's all part of the legacy regulations covering BT retail call pricing and which will all be swept away by Ofcom's unbundled tariffs and the lifting of the recently-extended provisions of the NTS Condition.


If any mobile phone companies are describing non-geographic numbers as "local rate", then that is an issue.

The bit that says "free" is referring to the amount the business pays to have and run an 0845 number.

But I did not think the word local was relevent any more.

Surely it costs the same as if I phoned my next door neighbour as it would to someone a couple of hundred miles away?

If I am correct then Bigjohn is right

As far as I am aware it costs the same to call an 01/02 (and 03) number regardless of were in the UK you are calling from and to. 

IE: Lands End to John o' Groats.  The 0845 anomaly is down to BT's old pricing charges.

Technically they should NOT describe 0845 as local rate, because a local rate for most of the UK subscribers does not exist.

I thought ASA ruled in the past that advertisers should  longer describe calls to ngn numbers as “local” or “national” to avoid misleading consumers,and how are the free ? unless they mean if your calling from inclusive minutes which you pay for.

0843, 0844, 0871, 0872 and 0873 numbers can never be described as local, lo-call or national rate. That association has never existed.

BT is in the unique position of having it's non-geographic retail call prices regulated. It is required to charge 0845 numbers at the same rate as the declared "local rate" found on the BT tariff where all calls are paid for and where there are no inclusive minutes. BT still defines prices for that tariff as it is required to do so by the regulations imposed on it by Ofcom. They do this even though it is many years since BT moved all of their customers that were on this old tariff over to the BT Weekend tariff (with an option to upgrade to BT Evenings and Weekends or to BT Anytime).

It is incorrect for a mobile operator to describe its 0845 retail call prices as local rate, because there's no such call rate on a mobile phone.

It is wrong for users of 0845 numbers to describe them as local rate as they have no idea which network the caller will be using.

The anomaly with BT will be eradicated by the unbundled tariff system and the release of BT from the recently-extended provisions of the NTS Condition.

There's a huge omission on that page. It completely fails to mention what a user with a mobile phone, even an O2 mobile phone, might pay to call each of those types of number.

Ofcom also say they shouldn't be described as local.

"Prior to July 2004, the 0845 and 0870 ranges were designated as ‘local rate’ and national rate’ in the National Telephone Numbering Plan. In July 2004, Ofcom modified the designations to reflect the fact that most callers now pay higher charges for 0845 and 0870 calls than for calls to geographic numbers. At the same time, Ofcom advised that the ‘local rate and ‘national rate’ terms may be misleading and should no longer be used to describe 0845 and 0870 call charges.
Ofcom subsequently contributed to Advertising Standards Authority/Committee of Advertising Practice (‘ASA’/’ CAP’) guidance on advertising call charges for 084 and 087 numbers which also advises that the ‘local rate’ and ‘national rate’ terms should not be used. "



http://stakeholders.ofcom.org.uk/telecoms/policy/non-geo-call-services/

Virgin Media - Virgin Media Mobile pay monthly call charges
store.virginmedia.com/virgin-media.../pay-monthly-call-charges.html‎
Local toll rate numbers (0845)6. 41p per minute.

Even Virgin Media don't know the correct terminology IDIOTS they should be fined for misrepresentation

bazzerfewi wrote on Oct 14^th, 2013 at 10:40pm:

Virgin Media - Virgin Media Mobile pay monthly call charges store.virginmedia.com/virgin-media.../pay-monthly-call-charges.html‎ Local toll rate numbers (0845)6. 41p per minute. Even Virgin Media don't know the correct terminology IDIOTS they should be fined for misrepresentation

Already a  thread on Virgin Mobile. ;)

See: http://www.saynoto0870.com/cgi-bin/forum/YaBB.cgi?num=1378100179

I am just in the process of complaining to Tesco who have changed all their 01 and 02 type numbers to 0845.  They are describing them as local rate.  As far as I am aware there is no such thing as a local call anymore, just as someone else has mentioned earlier in this thread.
Why do companies use 0845 numbers? 
Do they make money out of them as they do with 0870 etc?

The correct term for a 0845 number is "a none geographical number." It is not a local rate or local call number, maybe one of the more experienced members of this forum can give you a more in depth explanation.

tangerineRDS wrote on Oct 21^st, 2013 at 11:07am:

Why do companies use 0845 numbers?  Do they make money out of them as they do with 0870 etc?

Calls to 0845 numbers incur a 2p/min Service Charge. The called party uses this money to pay for the call routing costs at their end of the call. There's usually nothing left over for them to receive a revenue share payment. They simply have and use the 0845 number at no cost to the business, by forcing callers to pay for those costs.

Revenue sharing was suspended on 0870 numbers in 2009. Ofcom did that so that the call price would be reduced. Landline operators added 0870 numbers to their inclusive allowances. However, 0870 numbers remain expensive from mobiles. Additionally, many of the 0870 users simply migrated to 0844 numbers in order to continue receiving a revenue share payment.

Businesses currently do not make money from 0870 numbers. They have to pay for their use, often a bit more than they would have to pay for an 03 number.

Ofcom propose 0870 numbers return to revenue sharing in 2015 with a Service Charge around 10p/min and be subjected to the "unbundled tariffs" system. With mobile operators setting and declaring their Access Charge, the price for calling 0870 numbers from mobile phones could fall significantly.

Businesses using 0845 and 0870 numbers should be moving to 0345 and 0370 numbers. The Consumer Rights Directive will soon require it (or a move to a new 01, 02, 030, 033 or 080 number) for customer service lines.