I have had a further letter from Mr Maude.
Dear Mr ***********
The Secretary of State for Business Enterprise ans Regulatory Reform has replied to my representations on your behalf about the widespread use of 0800 numbers.
I enclose a copy of the response I have received from John Hutton to the concerns you raised in your recent e-mail. Thank you again for writing to me on this issue.
Yours sincerely
Francis Maude
As my scanner is sick, I have typed out John Hutton's reply. I would just point out that I am not a copy typist and have tried to copy it as acuurately as I can.
Dear Francis
Thank you for your letter of 19 June, enclosing correspondence from your constituent, Mr xxxxx of xxxxx about the widespread use of 0800 numbers. I do understand the concerns your constituent raises, and would like to explain the back ground and the action is being taken to address this matter.
The Independent Office of Communications (Ofcom) is responsible for numbering policy in the U.K. The first few digits of a UK telephone number give a broad indication to the caller of the type of service and /or cost of the call with 0870/0871 being the most expensive, 0844/45 in the middles and 0800 Freephone free of charge
There are various reasons why a company may choose to use an 0870 number. The prefix code may give a company a separate clearer identity as well as, perhaps being easier to remember. These numbers can also be used in conjunction with Intelligent Networks to manage calls. An Intelligent Network is a switching system that enables telecoms companies to process and route telephone calls more efficiently. The BT freephone 0800 and the mid-range 0844/0845 numbers can also be ised by Intelligent Networks, but whereas a company would have to pay BT for call charges associated with these codes, calls using an 0870 number would not cost the company anyting. There may be revenue sharing arrangements between an organization using an 0870 number and telecoms provider.
It is clearly down to the company’s own commercial judgement to decide what type of telephone number to use and Ocom cannot dictate to companies the type of numbers they must use. Neither can they demand that the link their non-geographical numbers to a local number. There are also price variations, which can be confusing for consumers because two people might dial the same 0870 number but be charged a different rate. The variations are caused by differences in the charges made by different telecoms companies for a call to an 0870 number. For example, a BT subscriber might well pay a different rate to a cable company subscriber, and a call from a mobile phone will probably be significantly higher than both.
Ofcom knows that consumers have concerns that 084 and 087 numbers (including 0844, 0845, 0870 and 0871 ranges) are increasingly being used by businesses as a higher priced alternative to ordinary geographical telephone numbers. Ofcom recently undertook a major review of its policy on these numbers. On 19 April 2006 following extensive consultations, Ofcom published a statement, setting out a package of consumer friendly measures. These includeintroducing a new range of 03 non-geographical numbers which will cost no more than the geographical rates, and restoring the link between 0870 prefix and the actual rates charged by telecoms companies for national rate calls, even within discount packages.
These new measures are being introduced over time so, for instance, the introduction of 03 numbers has already started and the alignment of 9870 costs with national rated will come into effect in January 2008. These measures should result in considerably lower prices for consumers. The website address for the Ofcom document is:
www.ofcom.org.uk/consult/condocs/nts_forward/statement/Communications Providers are obliged to publish “clear and up to date information on applicable prices and tariffs” for all calls including 0870 calls. Ofcom has also issued a statement about the publication of the pricing of non-geographical numbers, and has decided that telecoms companies should modify their codes of practice to ensure non-geographical call prices are given prominence in published price lists and in promotional material for different service packages, including whether or not non-geographical numbers are included in discount schemes. The website address for this document is:
www.ofcom.org.uk/consult/condocs/nts_info/statement/statementFor government contact Centres, the Central Office of Information has issued guidance recommending against the use of 0870/0871 numbers for services designed for individual consumers, because of the cost. The guidance recommends use of a geographical number either alongside or as an alternative to the 0870/0871 number. The guidance also draws attention to the relative expense of calling 0844/0845 numbers because they are often excluded from discount packages, and draws attention to the advantages of ne 03 numbers which will be much cheaper to call. This guidance can be found on the internet at:
www.coi.gov.uk/documents/gcc-second-edition.pdfYours
John Hutton