Dave wrote on Dec 13
th, 2005 at 9:38pm:
[...] It is, and that is why there should a non-geographical number whereby the caller pays the normal rate, had they called the underlying geographical number(s) directly. The cost of the NTS would be paid by the service provider, as they are clearly the ones benefiting. [...]
I believe you've missed some key points:
When you call from your geographic number (eg 0209999999) to another geographic (eg 01419999999), your call is delivered landline to landline. The call is direct. There is no middle-provider.
Many NTS numbers are run by SME telcos and not big companies like BT. In this example I'll use NTS number 08709999999:
When you call the 0870 number, it generally goes to another landline: eg you call from 0209999999 -> 08709999999 which terminates at 01419999999). An outpayment is made from the originating telco to the NTS provide, after they have made a termination charge. The NTS provider use the revenue they receive to terminate the 0870 call on 01419999999 without any charge to the Customer. Any money left over will be used to pay the overheads of the NTS provider. Additionally, the NTS provider may or may not offer revenue share to the 0870 subscriber.
If you have your own way and the cost of calling an 0870 number is reduced to that of geographic rate, the outpayment made by the originating telco to the NTS provider will be geographic rate less the termination rate. This means the NTS provider will not be able to terminate the call without suffering the effects of negative margin. This leaves the NTS provider with two options: Charge their subscriber to receive the call or close the service down. I suspect alot of the smaller SME telcos will choose to close the service, as alot of NTS users are SoHo/SME companies who simply CANNOT afford to pay for incoming calls. This will lead to job losses in the telecom industry, closure of telcos and an increase in market share by BT, leaving both individuals and businesses less product and service choice in the telecom market.
Let me back this up by giving you a real-life example:
1) I have an 0870 number, an 08445 number and an 0845 number. I do not receive outpayment on any of these numbers, so I am NOT USING THEM FOR REVENUE SHARE.
1.1) The 0870 number is given out to general callers and companies whose products and services I use. I also use it to receive calls from international destinations as diverse as the USA, OZ and the Far-East...blowing away the myth that 0870 numbers cannot receive calls from outside the UK.
1.2) The 08445 number is given out to friends and some family members. They have the benefit of getting hold of me anywhere, anytime and I don't see why I should pay to receive their call. Additionally, the fact it has a per minute cost stops certain people from nattering on the phone for ages...something they would certainly do if they had a geographic number for me. If I were to use an 0845 number in this instance, I would have to pay to receive the call as my numbers are from an SME Telco and not a large telco like BT.
1.3) The 0845 number is my emergency contact point and is routed to my mobile. Only immediate family and some very close friends have access to that number, as I have to pay alot to receive the call - I offer them this choice as IT'S CHEAPER THEN CALLING THE MOBILE DIRECTLY. For the avoidance of any doubt, my mobile is used for general outgoing calls and incoming priority calls only.
2) I change location several times a week and need the flexibility which NTS provides me, including instant rerouting.
2.1) Some of the sites I visit do not allow me to give out any of their geographic numbers. Using an NTS number allows me to assure the sites that any calls I receive will not reveal their TLI.
3) If NTS is forced down to geographic rate, my SME telco will have to charge me to receive calls, or they may close the service.
3.1) Even if they don't close the service (which will be lucky), I will not pay to receive calls.
3.2) I will, therefore, buy a second mobile with a PAYG SIM in it. Now all my contacts using 0870, 08445 or 0845 will have to pay alot more to call me. I won't be giving out my home number as I don't want to receive calls at certain times of the day or night. Remember that NTS 08 numbers allow me instant rerouting, so I can reroute to another number when I don't want to receive calls, or even NU.
3.3) I will have to change contact / calling cards, stationary, website numbers. This will cost me several hours and several hundred pounds.
3.4) I will loose contact with contacts who've had my 08 numbers for up to six years, no matter how hard I work to ensure that everyone knows.