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The UK’s regulator, Ofcom, has decided to change the rules that apply to 0870 numbers. Operators will be required to charge callers no more to call an 0870 number than it costs them to call a “geographic number”, with a dialling code starting with 01 or 02. As a result, the amount callers will be charged will reduce substantially, essentially eliminating the chance for organisations using 0870 numbers to generate revenue.
How this change affects your business; From July 2009 the cost of calling 0870 numbers will be dramatically reduced and all revenue sharing will cease. This means that ‘Number Providers’ will lose their revenue stream and therefore will start charging you for your incoming calls in order to make their revenue. Your business will soon pay to receive incoming calls on your 0870 numbers
Why the changes? Initially 0870 numbers were charged to callers at the same rate of the cost of calling an 01 or 02 number, around 7p + vat. More recently, the cost of calling 01 & 02 numbers has been significantly reduced, and they now cost closer to 3p + vat. The price of 0870 numbers did not change, which meant that they became viewed by customers as premium rate calls. In response to complaints, OFCOM have decided to reduce call costs to 0870 numbers, to bring them into line. Express Telephony can guide you through the following options;
Option 1 – Keep your existing 0870 numbers
Keep your existing 0870 numbers. From July 2009 you will be charged a ‘pence per minute’ rate to receive calls/faxes. Each month your ‘Number Provider’ will bill you for your total calls received and you will have to pay this bill.
Option 2 - Change your numbers to 0871
Costing 8.5ppm to call (excluding VAT), 0871 again has all the benefits of 0870 is ideal for generating a higher revenue stream from incoming calls, due to the call cost. Please be aware that ICSTIS the governing body for premium rate in the UK will be governing this code and this presents further problems.
Option 3 - Change your numbers to 0844
These cost 4.25ppm to call (excluding VAT), almost half the current cost of calling 0870 but with all the benefits, including a rebate dependent upon call volume. Many companies have already changed to 0844, making this option a popular choice.
Option 4 - Change your numbers to 0845
Your callers will only pay local rate charges. Calls are charged at 3.5p per minute (excluding VAT) to the caller and local rate 0845 has been used in the UK for over 10 years and is well established.
Option 5 – Change your numbers to 0800
Free phone numbers mean that you pay for your customers’ calls. This option is a powerful marketing tool as it tells your customers that you value their business. The rate you pay depends on the volume of calls you receive and is typically around 3.5p per minute.
Your course of action; • Think about the impact that the above options might have on your business.
• Act now and give yourself time to implement the changes
• Call Express Telephony to discuss your requirements and the implications.
• Be assured that you will be ready for the deadline of July 2009 OFCOM documents The following are web links to the Ofcom website which explain the 0870 changes:- Summary
http://www.ofcom.org.uk/consult/condocs/nts_forward/statement/#2 Full Document
http://www.ofcom.org.uk/consult/condocs/nts_forward/statement/statement.pdf
Express Telephony can provide you with all the Non Geographical Number support that you require, call us to discuss the options for your business.
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