'03' numbers being introduced in March 2007

Heinz

Ofcom have announced that '03' numbers will be introduced beginning in March 2007.

From consumers' point of view, the most important part is:

03 numbers are being introduced as an alternative to chargeable 08 numbers like 0870. Calls to 03 numbers will cost the same as calls to geographic numbers (starting 01 or 02), and be included as part of any inclusive call minutes or discount schemes in the same way as geographic calls.

Because many MSE-ers use 1899, 18185 and 18866 for their weekday daytime UK 01/02 calls (5p connection and 0p/minute for a call of any duration), I e-mailed all three and asked:

Please confirm 18185 (1899, 18866) will be providing access to the new UK range of '03' numbers (charged at the same rate as UK 01 and 02 numbers).

18185 replied:

That is correct, 18185 will provide access.

Less helpfully, 1899 and 18866 both replied:

You should be able to make call; please try and let us know if it works.
You will be charged according to the tariff message you hear before each
call.

N.B. I'll be doing another update to the Orchid program (to route 03 calls via 18185 weekdays and via CPS evenings and weekends) when the numbers are introduced (based on 18185's confirmation - above - they they will carry such calls for their usual "zero pence per minute" and assuming Primus will carry them free evenings and weekends).

deanos

Whats the point tho it wont make people any money so cant see it changing

ioscorpio

I heard that companies will no longer get a cut of the call, so no profit for them having 0870 / 03

peterg1965

I heard that too. Ofcom are finally clamping down on this deceitful practice. So I shall now expect Sky to go up in price by 10% to compensate!!

Heinz

peterg1965 wrote:

I heard that too. Ofcom are finally clamping down on this deceitful practice. So I shall now expect Sky to go up in price by 10% to compensate!!

I'd bet Sky will change to 10p/minute at all times 0871 or 5p/minute at all times 0844 numbers.

bunking_off

The commercial (inter-operator) arrangements haven't yet been agreed for 03. It seems unlikely that at a geo retail rate, there'll be enough revenue to do the kind of services that are typical on 08, e.g. distributing calls to individual agents based on how busy they are, on origin of call, time of day etc etc, indeed the likelihood is that the number holder will have to pay to receive calls. On that basis, I'd be surprised if there was a stampede to take up these numbers, and as others have said the companies that do take them will expect to recover their revenues another way.

18185 etc's reaction was interesting. Low cost providers make their money on geo numbers by being able to terminate as much traffic as possible to the correct BT exchange, hence get the lowest possible charges (plus, in the case of indirect access, being able to collect calls they've originated directly from the correct BT exchange). The little I know of 03 charging is that it's likely to be somewhere in the region of "single tandem" rate...this is considerably higher than their current cost base (as in 40-50%, and these inter-operator payments make up the vast bulk of costs). Now, Ofcom's mandate is that originating telcos will charge no more than their standard geo tariff for calls to 03...which as far as I can see means that either (a) ultimately companies such as 18185 will have to hike their geo rates to offset the loss they'll make on 03 calls, or (b) they'll not enable access. Guess 18185 are hoping 03 doesn't take off...

bbb_uk

bunking_off wrote:

The commercial (inter-operator) arrangements haven't yet been agreed for 03. It seems unlikely that at a geo retail rate, there'll be enough revenue to do the kind of services that are typical on 08, e.g. distributing calls to individual agents based on how busy they are, on origin of call, time of day etc etc, indeed the likelihood is that the number holder will have to pay to receive calls. On that basis, I'd be surprised if there was a stampede to take up these numbers, and as others have said the companies that do take them will expect to recover their revenues another way.

From the limited info I know, Ofcom are leaving the arrangements (I'm guessing fees also) upto CPs and any having probs arranging fees, etc have to ask Ofcom to look into it.

Do you think that for the very basic service (ie route the call to one geo) that it could be free of incoming call charges - maybe if a set monthly fee was introduced or something to offset incoming call charges.

I also believe there will be little uptake in these numbers but that's because they're are given the choice of using 084 which is advertised as local rate and is relatively unknown to many consumers of the actual costs of the these calls.

If companies never had the 084x/087x options and were stuck with choosing premium rate 09x or geo's with specialised PABX exchanges, etc then the uptake of 03x would be a lot more significant I believe.

18185 etc's reaction was interesting. Low cost providers make their money on geo numbers by being able to terminate as much traffic as possible to the correct BT exchange, hence get the lowest possible charges (plus, in the case of indirect access, being able to collect calls they've originated directly from the correct BT exchange). The little I know of 03 charging is that it's likely to be somewhere in the region of "single tandem" rate...this is considerably higher than their current cost base (as in 40-50%, and these inter-operator payments make up the vast bulk of costs). Now, Ofcom's mandate is that originating telcos will charge no more than their standard geo tariff for calls to 03...which as far as I can see means that either (a) ultimately companies such as 18185 will have to hike their geo rates to offset the loss they'll make on 03 calls, or (b) they'll not enable access. Guess 18185 are hoping 03 doesn't take off

Interesting! I didn't realise that. There again I'm surprised Call18185, etc make money from geo calls now never mind the new 03x range when available.

crackberry

does this mean end of 0870 etc phone #s?

utilitybroker

crackberry wrote:

does this mean end of 0870 etc phone #s?

No their still exist, but revenue sharing will end.

DonnyDave

crackberry wrote:

does this mean end of 0870 etc phone #s?

0870 numbers will become the same (in most cases) as geographical numbers. At present we have, in ascending order of maximum price from a BT landline:

0845, 0844, 0870, 0871

Come 1 February 2008 it will be:

0870, 0845, 0844, 0871

So 0845 will be more expensive than 0870! Those companies who opted for a lower rate than 0870, ie. 0845 will be at a disadvantage.

There is a consultation on Ofcom's website, see Heinz's link. Give your views on this, only a couple of weeks left to go!

bunking_off

bbb_uk wrote:

Do you think that for the very basic service (ie route the call to one geo) that it could be free of incoming call charges - maybe if a set monthly fee was introduced or something to offset incoming call charges.

Sorry bbb...missed the follow-up on my "user CP" so hadn't noticed your question.

It's too early to say. As you highlight, Ofcom are leaving it to the Communications Providers to agree the accounting regime between themselves (given the regime for 08 numbers has been subject to constant disputes over the last 12 years, it'll be interesting to see how successful that will be).

Obviously CPs with mainly originating traffic (e.g. BT, 1899 etc) will be pushing for the termination rate to be low, while the providers of 03/08 numbers will be pushing for it to be high.

Termination accounting for geographic calls currently has 3 basic levels - LES is where the call is delivered to the correct exchange, Single Tandem is where the call is delivered to its parent tandem, and Double Tandam is where the call is delivered to any old tandem switch (so the call goes through the tandem to which it's delivered, the tandem that parents the destination exchange, and the destination exchange...this level is also sub-divided by the distance the call's carried as well).

For normal geographic calls, CPs carry the call as far as they can to minimise how much they pay for delivery (called "far end handover"). For these 03 numbers however, there'll be no geographic significance so the only thing originating CPs can do is hand over to the terminating CP as quickly as they can (called "near end handover"). Some of the calls will co-incidentally hit the terminating CP at the correct location, others will go through two switching stages, but on average it may be more. But there can be only one rate for delivering the calls because the originator can have no idea where the end customer's located. So, the million dollar question (well in reality the market's worth tens of millions of pounds per year) is whether the termination rates for 03 will be similar to ST or DT. If the rates are similar to DT, there's scope to deliver the call without requiring a contribution from the 03 number holder. If it's more like ST, then chances are they'll have to pay.

Of course, the reality is very few of these numbers will ever be used to deliver calls directly. Most involve "intelligent network" call routing, which also costs (NB even the most basic 0870 number does this, to translate the 0870 to the geo delivery number). So, chances are 03 will involve the number holder paying for inbound calls. But until the rates are agreed, who knows?