Hi All
I wrote to OFCOM Re o870 numbers
Here is the reply I got:
Thank you for submitting your recent query to Ofcom’s internet site about the use of profit sharing on 0870 numbers.
Ofcom has noted the views that you have expressed about this matter.
I would explain that arrangements for sharing the revenue generated by a call to an 0870 number between the provider of the service and the communications provider is the commercial decision of the communications provider.
It forms part of its package for competing with other communications providers in attracting service providers’ business. Details are available direct from the communications providers. However, as an example, BT’s website states that it offers an extensive range of discounts and incentives for bulk inbound calls.
Companies providing service on 0870 numbers receive payment for every call in excess of 10,000 per month or they can count the minutes towards a Telemarketing total scheme of discount provision. Generally it is argued that the revenue a service provider receives goes some way (although probably not all the way) towards covering the cost of maintaining and enhancing services for the consumer.
The Oftel consultation “0845 and 0870 numbers: Review of retail price and numbering arrangements, 26 September 2003”, addressed two areas of concern - the potential for consumers to be misled by the designation of the number ranges and the effect on Terminating Communications Providers of the geo/non-geo local and national rate link on the BT network.
The follow up statement has now been published by Ofcom. Please see the following link on the Ofcom website:
http://www.ofcom.org.uk/consultations/past/0845/part1/?a=87101 The statement recognises consumers’ concerns regarding the opportunity for service providers to receive revenue share and the possible incentive to use 0870 numbers and prolong calls that this might produce. Ofcom shares consumers’ concerns about the proliferation of 0870 numbers and their possibly inappropriate use in some cases as simple substitutes for geographic numbers. Ofcom plans to address these issues in its forthcoming work.
Not all service providers use 0870 numbers specifically to earn revenue from calls. The level of payments received for each call is in fact very small and service providers often choose 08 numbers for other reasons, such as to use advanced call answering features which can be used to vary the way calls are answered and routed depending on time of day or location of caller. However, whilst it remains the commercial decision of service providers as to what type of number they wish to use to offer their services, Ofcom is aware of growing consumer dissatisfaction with the increasing use of 0870 numbers for information and access services.
As a result, Ofcom intends to give this matter further consideration and seek to develop ways in which it can provide support and protection to consumers who call these numbers. These will include measures designed to increase consumer awareness of 0870 call tariffs and Ofcom will be working with other regulators (such as ICSTIS and the Advertising Standards Authority) and the communications industry to produce guidance on the promotion and marketing of 08 numbers.
Ofcom is also considering a ‘best practice’ guide on the use of these numbers for service and call centre provision and may investigate the need for additional consumer protection measures if further evidence shows that revenue sharing arrangements are creating significant harm to consumers.
Hope you find it of interest
Lyn