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At midnight on July 31, 2009 the cost of calling a 0870 number will plummet. Currently charged at 7.74p per minute peak (including VAT), from August 1 this will fall to around 1p-2p per minute, a massive price drop of almost 75%. This is great news for the consumer, but quite devastating to the business that has invested heavily in advertising its 0870 number(s) not only in the short term but also in ‘longer term’ media such as the Yellow Pages and other directory advertising. Many companies have built their businesses around a memorable 0870 number – so future strategy must be carefully thought through in order to minimise the impact.
From August 1, for those companies that received it, there will no longer be any revenue share on 0870 numbers. So whether it’s 1p, 2p or 3p minute a company was getting, this will all end on July 31st. Obviously, for the majority of organisations not receiving revenue share this is of little consequence.
The real blow however is that companies wishing to retain their 0870 numbers will, from August 1, have to pay on average 3-3½p minute to receive calls. So not only will there be no revenue share but organisations seeking to retain 0870 number(s) will have the added cost of paying for incoming calls. BT has stated that it will be charging its customers 3.5p per minute (+ VAT) for a standard 0870 number or 4.5p per minute (+ VAT) for a 0870 number that is routed to different destinations.
Depending on your monthly traffic here is what the changes will mean for you – unless you do something about it.
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Monthly charge (at 3p min) |
Annual Cost |
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500 minutes month |
£15.00 |
£180.00 |
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2,500 minutes month |
£75.00 |
£900.00 |
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5,000 minutes month |
£150.00 |
£1,800.00 |
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10,000 minutes month |
£300.00 |
£3,600.00 |
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20,000 minutes month |
£600.00 |
£7,200.00 |
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50,000 minutes month |
£1,500.00 |
£18,000.00 |
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100,000 minutes month |
£3,000.00 |
£36,000.00 |
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250,000 minutes month |
£7,500.00 |
£90,000.00 |
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How the
Changes Came About
Most businesses are aware of these changes and the reasons for them. They have been written about extensively elsewhere. For this reason we won’t repeat the details other than to say that the changes were brought about by a media driven consumer campaign protesting the price differential between calling a non-geographic 0870 number and a standard long distance geographic number (calls to which originally cost the same as calling 0870, but which is no longer the position). The case was strengthened by anecdotal evidence that some companies appeared to be keeping callers on hold for lengthy periods simply as a way of making money. In the end Ofcom was forced to respond. They held ‘consultations’ and then published their ‘findings’. Many would argue that they went over the top without considering all the ramifications, but the impact on organisations using 0870 numbers is going to be considerable.
For more information on these changes you might like to click on the following link:
Your Options
You have four options and these are:
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Carry on as usual.
Keep your existing 0870 number and receive calls as you do at the moment. You need to be something of a financial masochist to favour this approach but it is an option if, and here is the caveat, your carrier will allow you. However, many carriers and resellers do not have the expensive billing software that will enable them to give you a computer generated monthly bill and for this reason have said they will no longer support 0870 numbers. It is important that you check with your carrier as soon as possible.
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Divert to a new
non-geographic number after
first terminating your 0870
number at a carrier-provided
voice mailbox
(using a recorded message to announce your new non-geographic number). Some carriers can provide this service. Others don’t. BT has announced that “due to the enormous volume of 0870 number changeovers, a Changed Number Announcement is unlikely to be available for everyone”. Your new non-geographic number option would be
a 0844 number. We advise against 0845 numbers since Ofcom will almost certainly reduce the cost of calling these following the implementation of the 0870 changes. By following this course (where possible) you retain the ‘goodwill’ built up in your 0870 numbers.
We also caution against 0871
numbers because of the high
calling charge and the legal
requirement to advise callers of
the cost of the call. Numbers
beginning 03 are a possible
option, but there is very little
public awareness of them and we know of
no plans to mount an awareness campaign whether by Ofcom or any other organisation. There is also an incoming call charge associated with 03 numbers. So the public may be distrustful of an unfamiliar range. While some carriers are looking at these, many are not.
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Simply get a new 0844 number. This
is undoubtedly your best option
if you wish to carry on with a
non-geographic number without
incurring call charges. Ofcom
has indicated that it has no
intention of changing the status
of 0844 numbers. For further
information on 0844 numbers please
go to www.0844UK.com.
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Use a local
geographic number.
The big disadvantage here is that by giving up your
non geographic number you will lose:
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a. |
The national identity
that a
non geographic
number
gives you |
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b. |
Portability, since the
local number can only be
moved within the area
served by your local
exchange. In major
metropolitan areas this
could mean a radius of
no more than 1 or 2
miles from the exchange |
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c. |
Any special features
that you may have
enjoyed with your
non geographic
number such as call
queuing, fax to email, IVR, etc |
Further
Information
For further information on these changes and possible solutions for your business please feel free to call Telecom Solutions at any time on 0800 195 6498 or visit our website
www.0844uk.com
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