tangerineRDS wrote on Sep 11
th, 2012 at 8:11am:
Has anyone else noticed that since the likes of BT offered the 0870 and 0845 numbers as part of their talk plans, that companies started to use 0871 and 0844.
Why have offcom allowed this?
Local Rate numbers do not appear to be of any benefit nowadays.
What has occurred is not as a result of these numbers being offered in call plans.
In August 2009 the subsidy or service charge passed on 0870 was removed. This means that call providers now no longer have to pay out higher rates than they do to connect 01, 02 and 03 calls.
BT pre-empted this by including 0870 in packages in February 2009, I believe it was. It decided to take a hit for six months knowing that 0870 would fall inline with 01, 02 and 03.
I believe that the reason that 0845 was included by BT was because of the changes that it believed were likely to be proposed by the consultation that has just closed. The consultation put forward suggestions for major changes to non-geographic numbers and BT thought that the service charge would also be removed from 0845, thereby allowing it to come down to the same rate as 01, 02, 03 (and 0870) calls.
Whatever call providers charge, this has no bearing on the benefit that number-users get; this remains the same.
A "local rate" number (0845 and previously 0345, although not today's 0345) was only ever of benefit to people calling from BT who were signed up to its non-discounted plans; these can be thought of as "pre-competition" rates. These plans offered different rates for local and national calls
and it was decreed by the then regulator, Oftel, that 0845 should be aligned to the local rate on these plans.
It was inevitable that the price of geographic calls would fall (due to competition) because the wholesale price is much lower than 084. This "wholesale" price is the amount that call providers must pass on to the telephone company that runs the number. The increased wholesale price is the service charge passed for the benefit of the user of the 084 number. Thus it's hardly surprising to find that 0845 numbers generally cost more to ring than geographic ones.