Wake up over 0870, says analyst

Date: 4th September, 2009.

British businesses and organisations will face a wake up call when new rules from Ofcom, the telecoms regulator,

relating to the 0870 number range take effect from 1 August, predicts a top telecommunications expert.

Nigel Rosehill, head of the communications team at Expense Reduction Analysts said: ‘Up to now 0870 calls

have been priced by communications providers at levels that enable businesses and other organisations to share

in the revenue generated by per minute call charges with the phone company. ‘These numbers have allowed

many organisations to provide a wide range of information and advice via a single number and the revenue

generated has been used to fund improvements to the customer service operation and the processing behind it,

or as simply a revenue creating activity. However, as Rosehill points out, the new rules, which are designed to

stop phone companies charging higher prices for calls to the 0870 number range than calls to standard numbers

such as 01, 02 and 03, will mean that companies and organisations using these numbers will from the 1 August

suddenly find themselves paying on average between 2-3 pence for each 0870 minute they receive.

This will be instead of earning the same amount as a rebate from the communications provider, as had been the

case.

Rosehill continued: Companies and other organisations that have not yet taken action, need to do so as quickly

as possible. ‘Whilst many organisations have migrated to the 0844 number range, which still provides a share of

the revenue, it is on a lesser scale than before. ‘Also in time I believe that this number range is also likely to

come under the spotlight as pressure continues to bring to an end many revenue sharing numbers, which are not

currently classified as premium numbers, such as 0871 and any number in the 09 range, which are now a lot

more strictlyregulated.

British businesses and organisations will face a wake up call when new rules from Ofcom, the telecoms regulator, relating to the 0870 number range take effect from 1 August, predicts a top telecommunications expert.

Nigel Rosehill, head of the communications team at Expense Reduction Analysts said: ‘Up to now 0870 calls have been priced by communications providers at levels that enable businesses and other organisations to share in the revenue generated by per minute call charges with the phone company. ‘These numbers have allowed many organisations to provide a wide range of information and advice via a single number and the revenue generated has been used to fund improvements to the customer service operation and the processing behind it, or as simply a revenue creating activity. However, as Rosehill points out, the new rules, which are designed to stop phone companies charging higher prices for calls to the 0870 number range than calls to standard numbers such as 01, 02 and 03, will mean that companies and organisations using these numbers will from the 1 August suddenly find themselves paying on average between 2-3 pence for each 0870 minute they receive.

This will be instead of earning the same amount as a rebate from the communications provider, as had been the case.

Rosehill continued:

Companies and other organisations that have not yet taken action, need to do so as quickly as possible. ‘Whilst many organisations have migrated to the 0844 number range, which still provides a share of the revenue, it is on a lesser scale than before.
‘Also in time I believe that this number range is also likely to come under the spotlight as pressure continues to bring to an end many revenue sharing numbers, which are not currently classified as premium numbers, such as 0871 and any number in the 09 range, which are now a lot more strictly regulated.