Will all providers comply with Ofcom's new rules from 1 July 2015?

Ian011

Most mobile providers currently take a variable share of the call cost. They might take more than £1 per minute on 09 and 118 calls but less than 10 or 20p per minute on calls to 084 and 087 numbers. Under the new scheme they average it out, presumably weighted against call volumes, hence why these call costs sometimes vary from out-bundle geographic rates. They could have taken this opportunity to equalise them, but that might come later. Be careful what you wish for.

The Access Charge can be inclusive. That move would lose massive amounts of revenue and would result in a large increase in monthly call package prices. Be careful what you wish for.

BT (both BT landline and BT Mobile) have notified their customers directly, but, as you note, have not yet published their Access Charge on their website. Neither has Sainsbury Mobile, O2 Mobile, Vodafone Home Phone, Post Office Home Phone, EE Home Phone and several others.

Regulation on the use of 084 and 087 numbers by financial services is not far away. Ahead of this, most banks have already changed their 0845 lines over to the matching 0345 number. The insurance sector needs a kick up the backside though.

1st July won't see 100% compliance, but it puts in place all the tools needed to expose unjustified usage of service numbers, hence leading to change. There will still be a few in use this time next year, just as there are a few stubborn cases that have not complied with the Consumer Contracts Regulations which came into force a year ago. There are still several hundred GPs that haven't complied with the ban on 084 numbers that was written into their contracts in 2010.

In the main, the cost of calling 084 and 087 numbers is becoming irrelevant. Most services are now using 03 numbers. Everyone seems to be focussing on Access Charges. It's the imposition of a Service Charge on callers that's the real issue.

thewinelake

I disagree - the access charge is going to be bigger than the service charge in most cases, and has the least justification.

You seem to be suggesting that the poor old telco's had to preserve their revenue on NGNs, and that's where the inflated access charges have come from. You might be right, but it doesn't make it fair or sensible!

How about pre-sales hotlines? eg. services like TicketMaster can legitimately use 087x numbers and I'm not aware of any impending restrictions there, but I'm not an expert on that.

I'd like to call out PlusNet as being the good guys - just 1ppm access charge - hooray!

Edit: That is actually incorrect based on a misunderstanding of their email. PlusNet are as much a bunch of scoundrels as the rest!

thewinelake

Oh, just a quickie - are there any 1xxxx IDA suppliers doing a good deal on 08xx calls?

Ian011

thewinelake wrote: »

I disagree - the access charge is going to be bigger than the service charge in most cases, and has the least justification.

In many cases, these numbers are being used for inappropriate purposes. They cling on to usage all the while claiming their numbers are 'only 5p per minute from a BT landline' (80% of calls originate elsewhere), calls are 'local rate' (untrue for 0845 since 2004, never true for other 084 and 087 numbers), 'we don't receive a financial benefit' (ignores the fact that caller s subsidise the non-geo costs), and so on. Exposure of the Service Charge reveals the truth. Changing the number to 03 makes both the Service Charge and the Access Charge go away and the call becomes inclusive.

thewinelake wrote: »

How about pre-sales hotlines? e.g. services like TicketMaster can legitimately use 087x numbers and I'm not aware of any impending restrictions there, but I'm not an expert on that.

There are no specific regulations for sales lines using 084, 087 and 09 numbers other than to declare the Service Charge everywhere the number is advertised. However, this declaration clearly reveals the businesses that charge customers extra when they call to buy something and charge potential customers extra when they call to discuss buying something. Customers are free to take their business elsewhere to a company that does not charge for these things.

thewinelake wrote: »

I'd like to call out PlusNet as being the good guys - just 1ppm access charge - hooray!

The only announcement I have seen from Plusnet said 9.58p per minute.

thewinelake

OK, see where you're coming from there. The sooner we're shot of them the better, but what's happened to 0870 still almost makes me feel sorry for it!

Ian011

Returning 0870 to revenue sharing reverses the error made by Ofcom in 2009 and ensures that all 084, 087 and 09 numbers are charged in exactly the same way as each other. Businesses who want calls to them to be charged at geographic rates and inclusive in call plans simply change to 0370 numbers.

The requirement to declare the Service Charge is already having an effect:
https://www.gov.uk/government/news/changes-to-hmrc-telephone-numbers
http://www.berwick-advertiser.co.uk/news/local-news/all-news/new-county-council-phone-number-1-3805819
The 30 June 2015 date is no coincidence.

thewinelake

Sure - it would be shocking for government/councils to continue with 08's - in fact I'm slightly horrified that it's taken them this long.

What is the deadline for (private) financial services firms to stop using 08's?

Ian011

FCA regulation for financial services should be published in the next few months. Ahead of this, most banks have already changed their 0845 lines over to 0345 numbers. The insurance sector has been slower to act. From 1 July, callers should challenge the imposition of a Service Charge - which must be declared.

martinjohn

I agree with whats been said here, this ofcom intervention seems to be putting up the prices of calls!

Also if the organisation you are calling has to tell you the cost of the call, what happens if they put up the cost without telling you?!!! So now you have to rely on some organisation your callin to inform you correctly of the call charge, i am getting this right ?

A least when it was fixed by your supplier, the price was clearly stated on their literature,
what was confusing about that?

martinjohn

You are kidding me,
We are going to have to rely on another organisation to ensure that prices are displayed correctly on adverts, is this some sort of joke?

So if i get overcharged when dialing a number i have to go thru the asa and try to prove that a website/advert was incorrectly displaying the price whereas before my phone company would have displayed the correct price?! EASIER?

Quote from ofcoms business site

"PhonepayPlus and the Advertising Standards Authority will be responsible for enforcing the requirements for including service charge information in advertising. More information about their penalties for non-compliance is available on their websites (and the website of the ASA’s sister body the Committee of Advertising Practice – https://www.cap.org.uk)

Broadcasters must abide by Ofcom's Broadcasting Code, or face potential penalties. The Code is currently being updated to reflect the requirement to explain the service charge."