I am writing with an important update on forthcoming changes to 0870 numbers.
Deltaphone are required to make these changes as they are due to policy changes
by Ofcom, the independent regulator of the UK communications industries.  There
are two key changes that will be implemented over the next few months:


(1) END TO REVENUE SHARE

(i) Ofcom statement:

Ofcom have proposed changes which will mean revenue share on 0870 numbers is no
longer possible.

"Ofcom proposes to remove 0870 calls from the scope of the BT NTS Call
Origination Condition ('the NTS Condition'), which requires BT to originate and
retail these calls on behalf of Terminating Communications Providers ('TCPs').
This will remove the regulatory underpinning for revenue sharing on the 0870
range..."
[Reference: Ofcom. NTS: A Way Forward. Final policy statement (19 April 2006).
Paragraph 1.6.]

"In conjunction with re-establishing the link between 0870 call charges and OCPs
(including mobiles and payphones) geographic call charges, Ofcom has decided to
withdraw the regulatory support for revenue sharing on the 0870 range."
[Reference: Ofcom. NTS: A Way Forward. Final policy statement (19 April 2006).
Paragraph 5.10.]

(ii) Implications:

Deltaphone will no longer be able to offer revenue share on 0870 numbers.

(iii) Our action:

Deltaphone will stop offering revenue on calls to 0870 numbers with effect from
6 June 2007.  Revenue earned up until that date will be paid as usual.  Any
revenue accrued under £20 will be forfeited as you will no longer be able to
earn revenue and thus reach the £20 minimum payment threshold.  In recognition
of this change, if you elect to close your account any revenue due with be paid
on closure of the account and will not be subject to the £20 minimum payout.

(iv) Your action:

No action is needed unless you wish to close your account.


(2) CHANGE IN COST OF CALLING 0870 NUMBERS

(i) Ofcom statement:

Ofcom have stated that the cost of calling 0870 numbers should in principle be
the same as the cost of calling a landline.

"Ofcom proposes to amend the National Telephone Numbering Plan ('the Plan') to
establish the principle that every Originating Communications Providers ('OCP')
should charge no more for 0870 calls than national calls to geographic numbers."
[Reference: Ofcom. NTS: A Way Forward. Final policy statement (19 April 2006).
Paragraph 1.3.]

"The proposal would also mean that 0870 calls would be included in call
packages. So for example, if a call package has no additional charges for calls
up to an hour at evenings and weekends, this would apply to 0870 calls, as well
as for calls to geographic numbers."
[Reference: Ofcom. NTS: A Way Forward. Final policy statement (19 April 2006).
Paragraph 4.8.]

(ii) Implications:

At present, the cost of calling 0870 numbers is generally greater than the cost
of calling a landline.  For example, on a BT residential landline calls to 0870
numbers during the day on weekdays cost 7ppm (pence per minute) whilst calls to
landlines cost either 3ppm (BT Together Option 1 and 2) or are free (BT Together
Option 3).  The difference in cost in used to fund the delivery of calls from
0870 numbers to your landline.  With effect from 1 January 2008 the cost for
calling 0870 numbers and landlines will be the same and may in fact be free and
thus there will thus be no funding to convey the call.  The exact details have
yet to be finalised by the telecommunications industry but it is probable that
you will need to fund the delivery of the call from the 0870 number to your
landline and thus pay to receive incoming calls on the 0870 number.

(iii) Our action:

As soon as the details become clearer, I will write again with the details of
what will happen from 1 January 2008.

(iv) Your action:

Please consider how you use your 0870 number and the possible implications of
this change.  A number of Deltaphone accounts are presently inactive.  If you
have an inactive account, it would be wise to close this account to avoid any
charges in the future.


IMPORTANT:  It is not the decision of Deltaphone to implement these changes and
Deltaphone does not indeed wish to implement them.  However, these changes have
been mandated by Ofcom.  For further information, please refer to the document
mentioned above on Ofcom's website (www.ofcom.org.uk) or contact Deltaphone by
email.


Gavin Winston
Deltaphone
www.deltaphone.co.uk
sales@deltaphone.co.uk