MSE News: 0800 calls could finally be free from mobiles

Ian01

Mattecarter wrote: »

The problem is how long will it take 0800 numbers to be made free from mobiles?

According to the original Ofcom plans from several years ago, legislation should have been out at the beginning of 2013, with a mid-2014 implementation date (concurrent with the provisions of the Consumer Rights Directive). This has slipped and the Ofcom legislation isn't now expected for several more months. The implementation date has also slipped to early 2015.

0500 and 080 numbers will be "free" from mobiles and landlines. Users of 0500 and 080 numbers currently pay for call routing at their end of the call as well as paying a small call origination fee to compensate the caller's network for carrying the call (because the caller isn't paying for it). The present level just about compensates landline networks for originating the call, but falls short of covering the cost of call origination from mobile networks.

At the present level of compensation, it would be reasonable for mobile operators to charge callers up to about 5p/min for calls to 0500 and 080 numbers. However, mobile networks have shown themselves to be greedy and they charge up to 41p/min for "freephone" numbers. Ofcom's proposals represent a significant intervention in the market and will greatly benefit consumers. Under Ofcom's plans, the call origination fee paid by users of 0500 and 080 numbers will be higher than it is now so that it covers all call origination costs from landlines and mobiles.

Mobile network EE have vigourously objected to Ofcom's proposals. They don't want consumers to have the level of call price transparency that Ofcom are proposing in the unbundled tariff. They also want to carry on charging rip-off rates for Freephone numbers. See: http://stakeholders.ofcom.org.uk/consultations/simplifying-non-geo-no/?showResponses=true (scroll down for the EE contribution).

Mattecarter wrote: »

Also if they are then this will make 0330 numbers pretty obsolete.

03 numbers are charged at the same rate as 01 and 02 numbers and inclusive in call plans. This applies to landlines and mobiles. These calls are effectively "free" when they are made within the allowances of a call plan, otherwise the caller pays for the call.

The user of the 03 number pays only for call routing at their end of the call. 03 numbers are cheaper to run than 080 numbers but are not universally "free" for all callers. Both types of number have a significant role to play in the marketplace.