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The Use of Non-Geographic Numbers (NGN's) (Read 37,299 times)
CJT-80
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The Use of Non-Geographic Numbers (NGN's)
Feb 3rd, 2011 at 2:02pm
 
I am going to break this post into two parts

Part One

What actual use is there for NGN's apart from charging the end user (us) extra and making a "profit" on calls? As far as I can see there is NO other benefit. Perhaps someone (anyone) can correct me if I am wrong. Wherever I now seem to go all I see is 08 numbers even for so called "local" business which used to have 01/02 numbers. I am sure when only 0845/0870 existed there were fewer companies using them. Anyone's thoughts are greatfully received.

Part Two

How much does it actually cost to call an NGN (excluding BT's special status) ? Is it 5p per minute plus a connection charge? 5.5p/8p/10p or more? As their appears to be NO set cost it is up to the general public (yup that's you and me again) to determine the cost of calling before calling the number!  I know how much it costs to call an 01/02 number, but I don't for the others...

Perhaps it's time the tide turned, we need to educate others, and work on convincing companies that these numbers do NOT benefit their callers, which they seem to want to convince us they do.

Again your thoughts are welcome.

Smiley
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SilentCallsVictim
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #1 - Feb 3rd, 2011 at 2:47pm
 
I will try to have a go at Part One quickly.


A non-geographic number removes any association from a particular locality. This can be useful for a national or regional service that does not wish to be associated with a specific town or area.

Non-geographic numbers provide ready access to certain features of the telephone network through what are known as intelligent switches. These features can be applied to geographic numbers, but less readily.

When a 03 number is used, the user of the line pays for whatever services they use; callers are charged at Geographic Rate. The availability of 03 is very important because it enables a distinction to be made between the functional and financial benefits of using non-geographic numbers.


When a 084, 087 (except 0870), 070 or 09 number is used the telephone company that originates the call (known as the OCP) pays an additional sum of money (per minute) to the telephone company that terminates the call (known as the TCP). Part of that money is used to offset the cost of the services provided, the remainder is passed on to the user of the line. Because this revenue is "per call", whereas some of the costs are fixed, there are various arrangements in place to determine exactly how this works. For example, DWP recently switched from paying for the services in full and then receiving a revenue share for each call received to simply paying at a reduced rate - this enabled it to claim that it had given up benefiting from "revenue sharing", whereas this change in the detailed arrangements with its telephone service providers made no difference whatsoever to what callers paid their providers.


Whether or not the user "profits" depends on the cost of the services used. With infrequently called 0845 numbers (on which the additional payment is only at the rate of around 1.7p per minute) it may be that the cost of the service is not fully covered.

One must also remember that handling incoming telephone calls is a cost for a business - in terms of staff etc. My general take is that for 084 and 087 ("Business Rate") numbers users are subsidising their costs, whereas for 09 ("Premium Rate") numbers they are earning money from each call received. Subsidy of costs that would otherwise have to be met does however make a positive contribution to the bottom line.
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CJT-80
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #2 - Feb 3rd, 2011 at 3:08pm
 
Ok, that's very helpfull.

The reason for the question was, that I seem to notice an increase in the number of Business' and organisations using 084 numbers, mainly 0844. With the varying "cost" of calling these numbers the "benefit" to the business can sometimes be outweighed, causing complaints and sometimes resulting in compensation to the customers.

The company I work for seems hell bent on using these numbers, even though a subsidary company they own does not use them.

It appears to be somewhat if a minefield.

Sad
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Heinz
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #3 - Feb 3rd, 2011 at 7:51pm
 
If I don't find a geographical number on here, I rarely give any company offering an 0843/4 number my business.  

If an 0871/2/3 number is offered, there is almost no chance.

I wonder what % of the population does the same?
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« Last Edit: Feb 3rd, 2011 at 7:51pm by Heinz »  

After years of ignoring govt. guidelines & RIPPING OFF Council Tax payers using 0845 numbers, Essex County Council changed to 0345 numbers on 2 November 2015
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CJT-80
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #4 - Feb 3rd, 2011 at 8:24pm
 
Heinz wrote on Feb 3rd, 2011 at 7:51pm:
If I don't find a geographical number on here, I rarely give any company offering an 0843/4 number my business.  

If an 0871/2/3 number is offered, there is almost no chance.

I wonder what % of the population does the same?


I always look for a Geo number or if not an alternative method of conact, such as e-mail. If all else fails, I find a way to point out I won't use them for business.

Smiley
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #5 - Feb 4th, 2011 at 8:08am
 
In response to the previous comments - customers are being encouraged to use alternative methods of contact, rather than the telephone. Call centres are expensive to staff, largely because they require an immediate and competent response. This is one reason why subsidy of the costs and redirection of customer enquiries may be deliberately sought.

If Ofcom's proposals for unbundling of charges and mandatory declaration of the "service charge" element (currently out to consultation) come into effect then the percentage who refuse to pay an unreasonable service charge would be expected to increase - AND QUITE RIGHT TOO.


Prompted in part by the Part Two question, I have collated and polished some relevant data into this blog posting.

If anyone spots any error that needs correction - PLEASE let me know BY EMAIL. Information on my campaigning blogs may provide a useful source of reference for individual members of this forum, but they are quite separate from this site.
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Heinz
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #6 - Feb 4th, 2011 at 8:22am
 
SilentCallsVictim wrote on Feb 4th, 2011 at 8:08am:
In response to the previous comments - customers are being encouraged to use alternative methods of contact, rather than the telephone.

That may be the intention of companies which use 084/087 numbers but, in reality, they're just losing business!
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« Last Edit: Feb 4th, 2011 at 8:23am by Heinz »  

After years of ignoring govt. guidelines & RIPPING OFF Council Tax payers using 0845 numbers, Essex County Council changed to 0345 numbers on 2 November 2015
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SilentCallsVictim
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #7 - Feb 4th, 2011 at 9:37am
 
Heinz wrote on Feb 4th, 2011 at 8:22am:
SilentCallsVictim wrote on Feb 4th, 2011 at 8:08am:
In response to the previous comments - customers are being encouraged to use alternative methods of contact, rather than the telephone.

That may be the intention of companies which use 084/087 numbers but, in reality, they're just losing business!

There may be some who would never fly because every airline uses 0871 numbers for some purpose or other, or use the NHS because NHS Direct uses a 0845 number, however it is unlikely that many would take such a principled stand.

Using a "Business Rate" number in a B2C situation as a means of winning business would probably be seen as a rather foolish strategy. This is however done with "booking" services, where the concept of a "booking fee" is not entirely foreign (Ticketmaster is the obvious case). Near-monopoly providers also do it with enquiry services (e.g. TfL) The common complaint however is that the Business Rate and Premium Rate numbers only appear once one is looking for after-sales support.

I would expect that if required to clearly state the service charge (as current proposed by Ofcom) then many would regard the dissatisfaction readily and obviously caused as being worth enough to offset the subsidy gained from using Business Rate numbers. The proposal at least has the merit of ending attempts to hide the premium charge by implying that every Telco other than BT is ripping off their customers.

There are probably also quite a number of cases where users of 0845 numbers genuinely do not realise what they are doing. I am certain that there are many who still believe that a 0845 number enables most callers to make a national call at the (lower) local rate. They may be losing business from some, but there will be other customers who believe this to be true. Indeed, BT callers either pay the same or less to call a 0845 number.
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #8 - Feb 4th, 2011 at 9:53am
 
SilentCallsVictim wrote on Feb 4th, 2011 at 9:37am:
Indeed, BT callers either pay the same or less to call a 0845 number.


Less.

I have recently made a day time 0845 call and it cost 29 pence for eight minutes and seventeen seconds. A day time call to a geographical number lasting 1 minute 48 seconds cost 26 pence
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #9 - Feb 4th, 2011 at 10:38am
 
sherbert wrote on Feb 4th, 2011 at 9:53am:
SilentCallsVictim wrote on Feb 4th, 2011 at 9:37am:
Indeed, BT callers either pay the same or less to call a 0845 number.


Less.

I have recently made a day time 0845 call and it cost 29 pence for eight minutes and seventeen seconds. A day time call to a geographical number lasting 1 minute 48 seconds cost 26 pence

SCV's statement is correct as those on inclusive packages pay the same (no incidental cost). Those who make a call at a time when it will be chargeable (i.e. not inclusive) will pay more to call geographic numbers.
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SilentCallsVictim
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #10 - Feb 4th, 2011 at 7:16pm
 
sherbert wrote on Feb 4th, 2011 at 9:53am:
I have recently made a day time 0845 call and it cost 29 pence for eight minutes and seventeen seconds. A day time call to a geographical number lasting 1 minute 48 seconds cost 26 pence

These costs tally with the rates from 4 Jan 2011.

This example helps to demonstrate the odd effect of the present regulation on BT. (The figures which follow are rough, rounded to a penny.)

14 pence would have been paid over to the telco terminating the 0845 call. This means that (with VAT removed) BT earned 10p from a 8 minute 17 second call to a 0845 number (the setup fee plus some costs), but 22p from a 1 minute 48 second call to a geographic number. It is fairly meaningless to express this selective example in terms of pence per minute rates, when a significant element is the fixed charge, however people do like to think of telephone charges in this way.

Excluding VAT and the "Service Charge" paid to the call recipient, the BT rates for these calls were 1 penny per minute for the 0845 call and 12 pence per minute for the geo call; less indeed. This ratio does not serve as general rule, it simply shows how a well-chosen real example can highlight the bizarre nature of the present situation. Examples like this can be exploited by our opponents to add to the confusion and misunderstanding of the underlying reality of "Business Rate" numbers.

No business would operate in such a way, unless required to do so by regulation. This is why it is absurd to quote BT rates (when BT originates less than 25% of non-business calls) and say that other providers' charges may vary. It is BT that is the odd case - due to regulation.

BT subscribers who regularly make weekday daytime calls - so that the monthly cost of geo rate, 0845 and 0870 calls approaches £5 (£2 if paying for unlimited evenings and weekends) should be subscribing to "Unlimited Anytime". This should be thought of as the standard option, except for those who only rarely or never make weekday daytime calls.

With "daytime" now extended to 7pm and package prices frozen whilst call charges were increased by 9% (not 2.13%) on 4 Jan, those for whom "Unlimited Anytime" is not the standard are fewer in number.
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« Last Edit: Feb 4th, 2011 at 7:31pm by SilentCallsVictim »  
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sherbert
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #11 - Feb 4th, 2011 at 7:37pm
 
SilentCallsVictim wrote on Feb 4th, 2011 at 7:16pm:
BT subscribers who regularly make weekday daytime calls - so that the monthly cost of geo rate, 0845 and 0870 calls approaches £5 (£2 if paying for unlimited evenings and weekends) should be subscribing to "Unlimited Anytime". This should be thought of as the standard option, except for those who only rarely or never make weekday daytime calls.


Evenings and week ends option does not seem to be advertised on the BT site. However there is no charge for this 'extra' if you sign up to a 12 month 'rolling contract'.
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« Last Edit: Feb 4th, 2011 at 7:38pm by sherbert »  
 
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bigjohn
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #12 - Feb 4th, 2011 at 8:00pm
 
sherbert wrote on Feb 4th, 2011 at 7:37pm:
Evenings and week ends option does not seem to be advertised on the BT site. However there is no charge for this 'extra' if you sign up to a 12 month 'rolling contract'.


No they want customers to take the fully inclusive plan. Smiley

You can find details of the Unlimited UK Evening & Weekend calls at no extra cost plan – 12 month renewable contract deal
here though   http://www.productsandservices.bt.com/consumerProducts/dynamicmodules/pageconten...
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« Last Edit: Feb 4th, 2011 at 8:02pm by bigjohn »  

BJ.
 
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #13 - Feb 4th, 2011 at 8:18pm
 
Firstly thanks to everyone who has contributed so far.  Smiley

From what I can establish so far, to the consumer there is little benefit in calling an 084 number (excluding BT's reduced rates) to contact a company. It benefits them more than us, and in some cases can be hugely expensive.

As an example, IF 0845 calls on BT were charged (ie not part of any call plans) at the same rate as an 0844 call ANY caller to these numbers would pay 6p per minute (rounded up) PLUS a 11.50 pence connection fee! Where as calling a 01/02/03 number outside a call plan is 7p per minute (no rounding needed) plus the same call set up fee! That's the difference of 1 pence per minute... !

Standard Calls
No Geo Calls

As pointed out the largest part of the overal price is the call set up fee!

bigjohn has posted elsewhere that the call set up fee is due to rise as of April - here

Also noted are price rises by other call providers.

Under these circumstances callers wishing to contact companies are being penalised for NOT using calls plans, and obviously for calling 084 numbers!

I think it's time we started to highlight directly to companies and friends and family the EXACT costs of calling these companies! Perhaps the deluge in complaints will force/convince them that the sales tactics of telecom's companies are just sales tactics!

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SilentCallsVictim
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Re: The Use of Non-Geographic Numbers (NGN's)
Reply #14 - Feb 4th, 2011 at 8:29pm
 
Quote:
No they want customers to take the fully inclusive plan.

We are now off the subject of NGCS, although the inclusion of 0845 calls is a major issue of concern as it adds further confusion to an already confused situation.

If, in a competitive market, BT chooses to offer its services with Geographic Rate calls included, applying penalty charges for calls made outside the terms of the chosen Call Plan, then I cannot see a problem with that in principle. All other landline providers now do the same. Moving to the situation where Geographic calls (of up to an hour) are not subject to call charges is a culture change for many of us. This has been led by the Mobile market where call packages have long been the way that things are done.

For myself, I think that this is a positive move, although I understand that those who only make calls rarely (during particular periods) do lose out by this approach. The most positive aspect of this from the point of view of our campaigning efforts is that it isolates "Business Rate" and "Premium Rate" calls as being subject to call charges because a portion of the charge has to be paid on to the recipient. We presently have a mess with 0845 calls and landlines, which is down to the fact that BT can afford to make them inclusive.

The move away from call charges for "regular" calls does create issues and confusion during the transition. There will be more to come once the process of reducing the inflated termination rates for calls to mobiles is complete - we will then see "unlimited" packages including calls to mobiles.
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