Once upon a time, BT was a monopoly provider of telephone services. Once it became independent and open to competition it was regulated as to what it charged. For calls to non-geographic numbers BT, and others providing call origination services, had to share the call revenue with the users of those numbers. This was in the name of encouraging new entrants to provide competition for BT and to stimulate technical and commercial innovation. BT was not allowed to make any money as the originator of such calls, whereas other providers could charge whatever they believed that the market would bear.

Where the level of the on-payment kept the charge to the caller at around the normal BT rates (now the 084 range) no additional regulation was thought necessary. Where callers paid a "premium", rules were imposed on providers of "Premium Rate Services". Being seen to have "Significant Market Presence" BT could be regulated, on the assumption that its competitors would be forced to match its rates. Mobile providers were not regulated, in the belief that they needed all the money they could get to develop this "vital" element of a service-driven economy and they operated in a fiercely competitive market, which would ensure that prices were the lowest possible.

Although views have changed greatly, this is still essentially the regulatory position that exists today. Only BT is regulated as an originator of revenue sharing calls, despite the fact that it only originates less than 25% of telephone calls made in the UK. All providers are regulated in their charges for calling the 03 range, which cannot exceed that for calling a geographic number. There is no additional subsidy available to users of 03 numbers.

Ofcom is now looking to address the situation for all originators of calls to what are now known as "Non Geographic Call Services" (NGCS). BT can no longer be regulated exclusively in this area, as its market presence has ceased to be formally regarded as "significant" and nearly all other rigid regulation of its activities has been lifted. Extended powers of price regulation over all providers are found in an EU Directive which must be incorporated into UK law by early in 2011. Ofcom will be announcing its proposed changes in the Autumn, following a "call for input" earlier this year.

The continuing perverse charges levied by BT (e.g. low rates for calls to 0845 numbers), must be recognised as being caused by obsolescent regulation and affecting a limited number of callers - a recent Ofcom report confirmed that 26% of group DE households rely on mobile phones for all their telephone usage. The subsidy obtained from use of 084 numbers is now invariably at the expense of callers (BT makes a profit overall, so non-profitable services must be subsidised by the rates its customers pay on other services).

This is the message that must be communicated to those who must use 03 numbers, where a non-geographic number is required, unless they are happy to justify themselves taking money from callers. As this charming piece pointed out, users of 084 numbers are in the same business as other providers of premium rate numbers, even though they can, for now, deny being covered by the formal definition of "Premium Rate Services".

I was wondering something about calls to 08 numbers (excluding 0800/0808).

I am aware there is a call set up fee from most if not ALL landline providers (BT is for the moment 9.9p) for calls to NGN numbers (perhaps excluding 0845/0870).

How does this work for callers on older line rental packages?? For example I have an inclusive package from BT (Anytime), so a call to an 0845 number is "inclusive" but what if I was not on a call plan, would it be "cheaper" to call this instead of an 01/02 number? Does it still attract the call set up fee?

Just wondered for some reference info...

Also is it at all possible that it's "cheaper" to call an 0844 number as apposed to an 01/02 number? There is a serious point to my question.

Thanks in Advance.

Thank you SCV,

can I take that as "most" customers not on call plans and those on older calling schemes?  It's just a case to put to the company I work for as to WHY they should switch back to an 01 or 03 number as apposed to their continued use of 0844 numbers, however based on your call summery those not on calling plans with effect from 01/10/10 will find it cheaper to call an 0844 number than an 01 number.

Not a good sign I feel,

CJT-80 wrote on Sep 14^th, 2010 at 10:42am:

Any organisation that chooses to us a 0844 (or 0845) number on the basis that is cheaper to call than a (non-inclusive) geographic or 03 number is advocating its customers (callers) subscribe to BT or another telephone service provider that discounts the cost of calls to 0844/5 numbers.

The review of non-geographic numbers that Ofcom is currently working on is likely to result in the removal of the regulation which keeps BT's 0844 retail call charges so low. Thus, the BT retail call price for 0844 calls are likely to increase in the future and organisations that use them should be mindful of this.