From: http://www.ofcom.org.uk/media/news/2008/05/nr_20080502

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Ofcom today set out proposals to provide clarity about the price of calls to 0870 numbers and strengthen consumer protection on calls to 0871 numbers.

0870 numbers are used by many businesses and organisations for a wide range of services including road traffic advice, customer services and financial services. This consultation is part of Ofcom’s wider review of so-called “non-geographic” telephone numbers (those not assigned by location) following consumer concerns over the lack of transparency about the cost of calls.

Today’s consultation proposes that all calls to 0870 numbers should normally cost no more than calls to geographic numbers (01 or 02 numbers) and that 0870 calls should be included in communications providers’ call packages price plans on the same basis as geographic calls. This may significantly reduce the cost of calling these numbers.

Currently 0870 calls are priced at levels that enable businesses and organisations to share the revenue generated by per-minute call charges. Ofcom’s proposals would effectively end revenue sharing on 0870 numbers when combined with other proposed changes to non-geographic call regulation.

Communications providers that want to charge 0870 calls at rates above those for geographic numbers would be bound by strict rules about how prices are publicised and would be responsible for ensuring their customers know what 0870 calls cost. If communications providers do not comply with these rules, they could be subject to penalties including possible fines.

Ofcom aims to have the proposed changes in place by the autumn.

Extension of Premium Rate Services Regulation to other 087 numbers

Separately, Ofcom also published a consultation setting out proposals to improve consumer protection for calls to the most expensive 08 numbers (0871 numbers) by bringing these within the remit of the premium rate services regulator PhonepayPlus (formerly called ICSTIS).

Under PhonepayPlus rules, businesses would be required to publish the price of calls in their advertising and promotional materials and PhonepayPlus would also investigate complaints about excessively long call queuing times only after the complaint has first been referred to the service provider.

PhonepayPlus also has a range of powers that enable it to address scams quickly when they arise. Ofcom is now seeking views on the rules that PhonepayPlus will apply to 0871 numbers.

Ofcom aims to publish a decision in summer 2008 and PhonepayPlus will start to regulate these numbers by the end of the year.

The consultation on 0870 numbers can be found at: http://www.ofcom.org.uk/consult/condocs/0870calls/

The consultation on 0871 numbers can be found at: http://www.ofcom.org.uk/consult/condocs/087prs/
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Regards
Sunil

http://www.computeractive.co.uk/computeractive/news/2215793/ofcom-opens-consulta...

Ofcom opens consultations on new rules for two 08 numbers

Regulator wants clarity on costs and greater protection for consumers

Dinah Greek, Computeract!ve 02 May 2008

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Ofcom has proposed greater protection and clarity on prices for consumers when they use 0870 and 0871 numbers.

The move follows increasing public concern about the lack of transparency over the cost of calls to these so-called non-geographic phone numbers. They are often used by organisations or businesses for services such as customer helplines or traffic advice.

But the different tariffs that companies can charge are bewildering. Anger over the costs has lead to websites, such as Say No to 0870, that give consumers alternative numbers to call.

As part of a wider review of the pricing of all non-geographic telephone numbers (those not assigned by location) Ofcom has proposed ending revenue sharing on 0870 numbers.

At the moment 0870 calls are priced at levels that enable businesses and organisations to share the revenue generated by call charges. The regulator also wants the cost of these calls to be no more than calls to geographic numbers (01 or 02 numbers). If adopted this could significantly reduce the cost of calling these numbers.

It said in a consultation opened today that communications providers that want to charge 0870 calls at rates above those for geographic numbers would be bound by strict rules about how prices are publicised. They would be responsible for ensuring their customers know what 0870 calls cost.

If they do not comply with these rules, they could be subject to penalties including possible fines. Ofcom also said 0870 calls should be included in communications providers' call packages on the same basis as geographic calls.

It has opened a separate consultation on the more expensive 0871 numbers. The regulator said these should be brought under the remit of premium-rate regulator Phonepayplus.

Businesses would be required to publish the price of calls in their advertising and promotional materials and Phonepayplus would also investigate complaints about excessively long call queuing times – but only after the complaint has first been referred to the service provider.

Ofcom aims to publish its decisions this summer and, providing no significant changes are made, Phonepayplus will start to regulate 0871 numbers by the end of the year.
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http://news.bbc.co.uk/1/hi/business/7380147.stm

Price cut plan for 0870 numbers

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The cost of calls to 0870 numbers will be cut under proposals by the regulator after complaints about price clarity.

The number is typically used by consumers when calling customer services departments or seeking advice such as traffic information.

Regulator Ofcom wants prices to come down from a typical daytime tariff of 6p to 10p per minute to 3p to 4p.

More expensive 0871 numbers would also be regulated by the premium-rate watchdog, under Ofcom's proposals.

The plans, which Ofcom wants in place by the autumn, are part of a wider review of so-called "non-geographic" numbers - which are not assigned by location.

Cutting prices

The 0870 numbers are used by a wide range of businesses and organisations offering anything from traffic information to financial services.

Consumers have complained to Ofcom about a lack of transparency in pricing.

On average these calls cost between 6p and 10p per minute in the daytime from a BT landline and 1p to 5p at other times.

Ofcom wants this to be reduced to around 3.5p a minute in the day and 1p to 1.5p a minute at other times - similar to "geographic" telephone numbers.

The proposals would effectively rule out companies or organisations sharing the revenue generated by the calls.

Those which wanted to charge more would have to abide by strict rules on how call charges were advertised.

'Scandal'

"The continued high prices of calling 0870 numbers, particularly from mobile phones, remains a shame and a scandal," said Ofcom Consumer Panel chairwoman Anna Bradley, who welcomed the proposals.

"It is simply unacceptable that consumers are paying up to 25p a minute to call 0870 numbers from mobile phones, or 10p a minute from a landline, when compared to the lower costs of calling geographic numbers."

In a separate decision, Ofcom announced plans to improve consumer protection for calls to more expensive 0871 numbers.

It wants these numbers to come under the remit of PhonepayPlus, the premium-rate regulator.

Under the watchdog's rules, prices would have to be published on any advert or promotional material for an 0871 number and excessively long call queuing times could also be investigated.
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I knew Ofcom was going to remove the requirement for a pre-call announcement.

I have yet to read the whole consultation before making comments because Ofcom have been known to leave important information out of their brief description, instead burying it within the a very large consultation (over 100 pages in this consultation on 0870 alone).

http://news.scotsman.com/uk/Watchdog-plans-0870-cost-cuts.4047988.jp

Watchdog plans 0870 cost cuts

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OFCOM has announced plans to cut the price of calls to 0870 numbers so they are no more expensive than geographic numbers.

Many firms use 0870 numbers for customer services. They can cost up to 10p a minute to call from a landline, or 25p from a mobile.
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Four weeks to go until the deadline.

idb wrote on May 19^th, 2008 at 7:04pm:

... which make some good points, but (sadly and predictably - I intend no criticism) do not seriously address the content of the consultation document. It is full of technical detail and requires an understanding of the vital context, in particular the outcome of the ongoing dispute about BT termination fees and the intentions of BT and others in respect of the options presented by Ofcom.

I would suggest that no member of the public is able to offer a meaningful response whilst these items are unknown and their significance unrecognised.

So, nothing's changed, nothing's going to happen, there are now no meaningful proposals on the table and, in reality, all that has happened is the abusers have been given more time to quietly move to 0844, 0871 and 0872 numbers.