Ian01
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All over the internet are thousands of calls to 'ban all 084 and 087 numbers'. A five-pronged approach to the various issues, by DoH, BIS, CO, FCA and Ofcom has eventually led us almost to that situation.
GP practices and NHS bodies, post-sales helplines used by retailers, traders and passenger transport companies, helplines used by government departments, their agencies and 'other bodies across the public sector landscape' and phone lines used by financial services including banks and insurance companies must use numbers starting 01, 02, 03 or 080. Ofcom requires that all remaining usage of 084, 087 or 09 numbers (such as by chargeable services that are paid for as the call is being made, and by sales and enquiry lines used by companies that charge callers extra when they phone up to buy something) must be accompanied by a declaration of the applicable Service Charge.
It is now clear that all 084, 087 and 09 numbers are premium rate. The premium is the Service Charge paid to the benefit of the called party and their telecoms provider. It is also clear that these numbers should be used only to provide a chargeable service paid for as the call is being made.
An attempt on an outright ban on all 084 and 087 numbers and immediate closure of these number ranges would have seen Ofcom in court and losing the case. Instead, this has had to be done in measured and well-reasoned steps. It has also had to involve other regulators. The eventual outcome will be much the same.
International dial-through providers exploited a feature of 084, 087 and 09 call pricing that applied only to calls made from BT landlines (and from landline providers that copied BT's rates even though it made no financial sense to do so).
For more than a decade, an obscure Ofcom regulation called the 'NTS Retail Condition' required BT to make zero margin on call origination to 084, 087, 09 and 118 numbers. This meant that of whatever you paid BT for the call, almost all of it was passed on and paid to the benefit of the terminating telecoms provider. In the case of international dial-through providers, they used this revenue to pay the cost of forwarding the call to an international destination. Other landline and mobile provider's retail call prices were not restricted in this way, they were allowed to make margin on call origination. The same call made from another landline would cost at least several pence per minute more than calling from a BT landline and from mobiles would likely cost a lot more, typically 30p to 40p per minute.
The ending of this rule is what has led to BT increasing the call cost. BT can now make margin on originating these calls, but must declare their part of the call cost as their Access Charge - as must all landline and mobile providers. BT's Access Charge is 10.24p per minute. Other landline providers charge between 2p and 12p per minute. Mobile providers charge between 5p and 45p per minute.
Calling an international dial-through provider on an 084, 087 or 09 number from a BT landline is now as expensive as calling from some other landline. For a long time, most international dial-through providers have offered an alternative 020, 03 or 080 number for non-BT landline and all mobile users to call. BT customers now also need to use that option.
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