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.

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:

1. 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.
    

2. 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.
    

3. 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.
    

4. Use a local geographic number. The big disadvantage here is that by giving up your non geographic number you will lose:

   a.	The national identity that a non geographic number gives you
   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
   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