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0870 Number Alternatives

What are the options when Ofcom implements its 0870 changes?

In April 2006 Ofcom announced that it would be looking to change the way calls to 0870 numbers were charged to address consumer and industry concerns about the costs involved.

The communications watchdog proposed that all calls to 0870 numbers should cost no more than calls to landline 01/02 numbers. This would effectively rule out companies and organisations sharing the revenue generated by the calls unless providers specifically publicise the higher prices on all of their promotional material.
 
Two and a half years later, the changes have yet to be introduced, although Ofcom has declared that a formal announcement on the changes (following its public consultation in May 2008) will be made by the end of 2008.

But what does this mean for organisations that already have an 0870 number?

Well, there are a variety of options.

Many commentators are suggesting that the new 03 numbers are the answer and in particular, 03 migration numbers.

03 migration numbers (http://www.windsor-telecom.co.uk/03-numbers.php) allow organisations that already have an 0870 number to obtain its 03 equivalent. For example, if a company already has 0870 111 1111 it can obtain 0370 111 1111 instead.

This migration could make the change more manageable as the majority of the telephone number is exactly the same (which could make it slightly easier for callers to remember the new number).

Like all 03 numbers, 03 migration numbers cost the same to call as a standard landline 01/02 number - even from a mobile phone. The numbers are also included in the free minutes allocation offered by all major mobile and landline operators, so effectively they are free to dial for many callers.

The cost for organisations to run 03 migration numbers varies, although there is normally a connection fee, annual service charge and pence per minute charge on the inbound calls received. Although telecommunications company, Windsor Telecom (http://www.windsor-telecom.co.uk) gives its customers 10,000 free inbound minutes per month.

0845 numbers (http://www.windsor-telecom.co.uk/0845-numbers.php) are the UK's most popular non-geographic number and therefore have a high public awareness. When 0845 numbers were first introduced the cost to call them was the same as a local rate call. However, with the increased popularity of mobile phones and the varying tariffs that mobile phone networks offer, there is now a variety of call costs associated with them. From a standard BT landline, calls to an 0845 number currently cost 3.36p per minute (daytime) and 0.85p per minute (evening and weekends). The cost for organisations to run 0845 numbers varies, although there is normally a connection fee and annual service charge.
 
0800 numbers (http://www.windsor-telecom.co.uk/0800-freephone-numbers.php) are powerful marketing tools. They are totally free for people to dial from a landline, as the organisation that runs the number pays for the cost of the call. This displays to callers that the organisation values their call. In fact, research by the Institute of Direct Marketing has revealed that organisations that use 0800 numbers can increase their response rates by 185%. Although 0800 numbers are free to call from landlines, mobile phone companies charge their customers to call them. The cost for organisations to run 0800 numbers varies, although there is normally a connection fee, annual service charge and pence per minute charge on the inbound calls received.

Revenue sharing is not possible with 03 numbers, 0845 numbers or 0800 numbers and for organisations that still want to make a share of the profit from their incoming calls, then 0844 numbers could be the answer.

0844 numbers are a sister range to 0845 numbers, although unlike 0845 numbers, they allow organisations to revenue share because of the fixed cost of the incoming calls (From a BT landline it will cost callers to 0844 numbers 4.25p per minute at all times). It is worth noting though, that once Ofcom has decided on its 0870 changes, they could well decide to implement such changes to 0844 too.
The cost for organisations to run 0844 numbers varies, although there is normally a connection fee and annual service charge.

So, it would seem that there is life after 0870 after all - it's merely up to the organisation to work out which telephone number alternative suits them best and which fits in with their specific requirements in preparation for Ofcom's 0870 announcement at the end of 2008.

About the Author

Mark Guy is Public Relations Officer at Windsor Telecom in Poole, Dorset. For more information call 0845 230 1660 or visit http://www.windsor-telecom.co.uk

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