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Who will buy the EE £3/month add-on for 084 & 087 numbers from 1 July 2015?

Ian011
Ian011 Posts: 2,432 Forumite
Fifth Anniversary 1,000 Posts Name Dropper
edited 17 May 2015 at 11:24AM in Mobiles
On 1 July 2015, call prices for 084, 087, 09 and 118 numbers are being split into two parts, each separately declared.

The Access Charge is the part charged by the caller's phone provider to connect and convey the call.

The Service Charge is the part paid to the benefit of the called party and their telecoms provider for providing the chargeable service.

Service Charges for calls to 084 numbers will vary from 1p to 7p per minute depending on the exact number called.

Service Charges for calls to 087 numbers will vary from 1p to 13p per minute depending on the exact number called.

EE has set their Access Charge at 44p per minute.

EE has also announced an add-on (for contracts, not available on pay as you go) which will give 300 minutes of calls to 084 and 087 numbers for £3 per month.


Who may be tempted to buy this add on?

People who call customer helplines for retailers, traders and passenger transport companies may be tempted to buy this add-on. They will have missed the point that since 13 June 2014 these helplines are required by Regulation 41 of the Consumer Contracts Regulations 2013 to use 01, 02 and 03 numbers which are inclusive in normal call allowances or 080 numbers which are free to call from landlines and will also (from 1 July 2015) be free to call from mobiles.

People who call government departments such as HMRC and DWP may be tempted to buy this add-on. They will have failed to notice that HMRC changed their 0845 and 0870 numbers to new 0300 and 0345 numbers between March and October 2013. Likewise, DWP changed their 0845 numbers over to 0345 numbers in March 2014. The new 03 numbers are already inclusive calls on landlines and on mobiles, else charged the same as calls to 01 and 02 numbers.

People who call their bank may be tempted to buy this add-on. They will have missed the point that most banks have already moved over to new 0345 numbers which are inclusive within normal call allowances else charged at 'geographic rate'. While there are a small number of banks currently retaining usage of various 084 and 087 numbers, the FCA will ban this within the next few months and require the use of 01, 02, 03 or 080 numbers.

People who call international destinations via instant-access dial-through providers may be tempted to buy this add-on. It is very likely that these types of call are excluded from the 300 minute allowance and charged at the full 44p per minute Access Charge plus Service Charge rate, making the add-on completely useless.

Once the point is reached where retailers, traders, passenger transport companies, government departments, public services, NHS services and financial services including banks and insurance companies have complied with the relevant regulations and guidance by moving to 03 and other "basic rate" or free numbers, most people will thereafter make zero minutes of calls to 084 and 087 numbers.

I can only assume that EE expect lots of people will buy this add-on and then not actually make any calls to 084 and 087 numbers, EE thereby gaining £3 per month for nothing.

The economics of the deal make no sense at all. 300 minutes of calls to 084 and 087 numbers would otherwise run up an Access Charge bill of £132 and a Service Charge bill of up to £39 (at up to 13p per minute). Upon payment of £3 per month by the caller, EE is committed to pay out up to £39 Service Charge to the organisations being called. This deal therefore relies on other callers subsidising the additional costs incurred and perhaps explains why the Access Charge is otherwise 44p per minute.


Who should buy this add-on?

A small business that has staff out and about and who call back to the office for about an hour per week could benefit from this add-on.

If the office number is an 087 number with a 13p per minute Service Charge, it will pay out revenue share somewhere around 8p or 9p per minute. 300 minutes of incoming calls would earn around £24 to £27, neatly offsetting a large proportion of the main part of the monthly bill for the mobile phone that is making the call.

It would do so, as would all other calls to 084 and 087 numbers, to the detriment of other EE customers who will be subsidising the outgoing Service Charge costs at up to 12p per minute on each call made.



See also
https://forums.moneysavingexpert.com/discussion/5219756
https://forums.moneysavingexpert.com/discussion/5220589
https://forums.moneysavingexpert.com/discussion/5224090

Comments

  • d123
    d123 Posts: 8,747 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I won't, I just don't call 084x or 087x, if I can't find an alternative normal number I'll find an email address for the company and email them instead.
    ====
  • ducky2004
    ducky2004 Posts: 99 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Good analysis.

    However, EE is offering a 1p access charge for those who pay £3 per month. Service charges are on top.

    So, calling a 5p/min number cost 5+1= 6p/min with the package, rather than 44+5=49p (!)
  • sparky93
    sparky93 Posts: 393 Forumite
    Part of the Furniture 100 Posts
    not me, i use sayno to get a 0800/01/02.(my ee has free 0800)
  • Carl31
    Carl31 Posts: 2,616 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    I got the text, just assumed they were doing this out of kindness...how naive of me

    Ill just carry on using the 'We Q4U" app on my phone, its free then anyway
  • Ian011
    Ian011 Posts: 2,432 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 22 May 2015 at 12:32AM
    ducky2004 wrote: »
    Good analysis.

    However, EE is offering a 1p access charge for those who pay £3 per month. Service charges are on top.

    So, calling a 5p/min number cost 1+5= 6p/min with the package, rather than 44+5=49p (!)
    The 1p/min rate is true only if you make exactly 300 minutes of calls. If you make only 100 minutes of calls that will equate to 3p per minute.

    The EE page says '300 minutes of calls' and 'calls for 1p per minute', implying it covers both the Access Charge and the Service Charge.

    It doesn't say '300 minutes of Access Charge, Service Charges are on top'.
  • simax
    simax Posts: 1,977 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The 300 minute bundle covers both charges, so does actually equate to 1p/minute.
    I spent 25 years in the mobile industry, from 1994 to 2019. Worked for indies as well as the big networks, in their stores also in contact centres. I also hold a degree in telecoms engineering so I like to think I know what I’m talking about 😂
  • MrChips
    MrChips Posts: 1,057 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    I get free calls to 08 numbers with my T Mobile contract anyway so I won't sign up for this even though they texted me to offer it!
    If I had a pound for every time I didn't play the lottery...
  • sparky93
    sparky93 Posts: 393 Forumite
    Part of the Furniture 100 Posts
    MrChips wrote: »
    I get free calls to 08 numbers with my T Mobile contract anyway so I won't sign up for this even though they texted me to offer it!
    amused me, for same reason . ee.
  • Pompeyfan
    Pompeyfan Posts: 51 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I use a 69p app (SayNoTo0870) on my phone that automatically checks for alternative numbers and dials that instead.
  • Ian011
    Ian011 Posts: 2,432 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 23 May 2015 at 8:15PM
    Pompeyfan wrote: »
    I use a 69p app (SayNoTo0870) on my phone that automatically checks for alternative numbers and dials that instead.
    Most retailers, traders, passenger transport companies, government departments, public services, local authorities, NHS services and banks have swapped to 03 numbers, or in some cases 080 numbers.

    There are very few 084 or 087 numbers still in use compared to, say, two years ago. Those that remain in use after 1 July 2015 must declare their Service Charge everywhere their number is advertised. There are no exceptions.

    The days of looking for alternative numbers are coming to an end. It is important for people to look on the official website of organisations they call in order to discover the new 03 and 080 numbers.
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