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Will all providers comply with Ofcom's new rules from 1 July 2015?
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Ofcom does not permit variable charges for 03 numbers. Their rules require that 03 numbers are charged the same as calling 01 and 02 numbers and count towards inclusive allowances on landlines and on mobiles in the same way.
Thanks for the clarification. That's good to know. And this also implies that the Plusnet wording I mentioned only applies to 0845/0870 numbers, particularly since they could charge for these calls if they wanted to, but are instead including them in the inclusive allowance for some call packages.Providers can exclude specific 01 and 02 numbers from inclusive allowances if they want to do so.
Ah, so, I could still be caught out! However, I assume a provider would be obliged to specify excluded numbers, so if they've said "all 01, 02, 03 numbers" then I shouldn't be overly concerned, right?
While we're on the topic of 01 numbers, however, isn't there a genuine risk that companies providing 01 numbers to call overseas might use number from IoM or CI? (Do you have a link to a definite list of non-UK numbers that start with 01, 02 etc.? I saw you'd listed them on another thread, but a permanent link would be helpful).0 -
The main exclusions are landline and mobile numbers in Jersey, Guernsey, Isle of Man. There are various lists of these prefixes. The easiest one to find via Google is on the O2 website.
Another set is the so-called 'non-mobile' numbers. Ofcom removed the basis for this anomaly (higher than normal termination rates) on 1 May 2015, but most providers are still charging extra for these numbers.
The last set are the 'non-landline' numbers and although these exist, most providers have failed to produce a list, e.g. some networks exclude numbers starting (020) 3505 but you'll not see it mentioned anywhere.
ASA specifically requires excluded number ranges are listed. Not all providers do so.
Ofcom is working to remove as many anomalies as possible, but in a competitive market there will never be 100% standardisation.
The forthcoming review of 055, 056, 070 and 076 could prove very useful. 0500 will be withdrawn in June 2017.0 -
Another set is the so-called 'non-mobile' numbers. Ofcom removed the basis for this anomaly (higher than normal termination rates) on 1 May 2015, but most providers are still charging extra for these numbers.
Is it easy to explain what's meant by 'termination rates', as I've seen you talk about that a lot. If it's not straightforward, don't worry.ASA specifically requires excluded number ranges are listed. Not all providers do so.
Sounds like the only way to be 100% sure of anything is to call a number and then check your phone bill before continued use!Ofcom is working to remove as many anomalies as possible, but in a competitive market there will never be 100% standardisation.
I've been meaning to ask – do you work for Ofcom? If not, you're extremely well informed. Thanks for all the advice to me and many others.0 -
Termination rates are the amount of money the caller's landline or mobile provider (the call originating provider) has to pay to the provider that hosts the number that was called (the terminating provider).
The regulated maximum rates are currently:
- up to 0.21p per minute for calls to 01 and 02 geographic numbers (not including calls to Jersey, Guernsey and Isle of Man)
- up to 0.56p per minute for calls to 03 non-geographic numbers
- up to 0.68p per minute for calls to 071-075 and 077-079 mobile numbers (not including calls to Jersey, Guernsey and Isle of Man)
If you pay, e.g. £7.50 per month for unlimited inclusive calls to 01, 02 and 03 numbers on your landline you'd have to make a lot of calls before your provider started losing money. If you're paying 45p per minute on your mobile for these calls you are being ripped off.
High termination rates have prevented calls to Jersey, Guernsey and Isle of Man from being inclusive. These remain outside of Ofcom control but are gradually reducing.
High termination rates have prevented calls to mobile numbers becoming inclusive from landlines. As the termination rate for calls to mobiles is reduced each year, the possibility of such deals comes ever closer.
The other regulated rates are
- up to 7p per minute or per call for calls to 084 numbers
- up to 13p per minute or per call for calls to 087 numbers
- up to £6 per call and/or up to £3.60 per minute for calls to 09 numbers
Other numbers are not regulated and their termination rates can be
- up to 50p per minute for calls to 070 numbers
- up to £7 per call and/or up to £3.60 per minute for calls to 118 numbers.
On calls to 084, 087, 09 and 118 numbers, the termination rate is now separately declared as the Service Charge.
The Service Charge subsidises or pays for the chargeable service that was accessed. This is why these calls should not be inclusive. The caller that accessed the service is the one that should pay the applicable Service Charge.
No. I don't work for Ofcom.0 -
Thanks for the detailed explanation. I think I get most of what you said, but...Termination rates are the amount of money the caller's landline or mobile provider (the call originating provider) has to pay to the provider that hosts the number that was called (the terminating provider).
So, let's say I'm with Virgin and I call a friend who is with BT – Virgin have to pay BT the termination rate. But if the Service Charge element of 084 and 087 numbers is also a termination change (as you mention below), then how do service providers get their hands on the money if the termination charge is paid to the telecommunication provider?- up to 0.56p per minute for calls to 03 non-geographic numbers
- up to 0.68p per minute for calls to 071-075 and 077-079 mobile numbers (not including calls to Jersey, Guernsey and Isle of Man)
High termination rates have prevented calls to mobile numbers becoming inclusive from landlines.
Hmm... not far off the termination rates for 03 numbers, though! (Although I suppose in this case phone companies didn't get a choice about including 03 numbers in inclusive calls.)On calls to 084, 087, 09 and 118 numbers, the termination rate is now separately declared as the Service Charge.
The Service Charge subsidises or pays for the chargeable service that was accessed. This is why these calls should not be inclusive. The caller that accessed the service is the one that should pay the applicable Service Charge.
Agreed. And I'm sure I'm not alone in saying I'm happy to pay the service charge element of these calls. But I don't see how that justifies phone companies now charging 10p per minute just to be able to connect to the service which you wish to use... (I now have to spend 11p to access a service which someone is prepared to sell for 1p/min, making the phone company a nifty little bit on the side!)0 -
Ofcom does not permit variable charges for 03 numbers. Their rules require that 03 numbers are charged the same as calling 01 and 02 numbers and count towards inclusive allowances on landlines and on mobiles in the same way.....The regulated rates are currently:
- up to 0.21p per minute for calls to 01 and 02 geographic numbers (not including calls to Jersey, Guernsey and Isle of Man)
- up to 0.56p per minute for calls to 03 non-geographic numbers
.........
Bit of a contradiction there don't you think?
.Don`t steal - the Government doesn`t like the competition0 -
The caller's landline or mobile provider pays the Service Charge to the non-geographic number provider. They use part of it to pay for the call-handling (IVR etc) and call-forwarding costs (including the termination payment for the final landline or mobile destination) and the rest is either paid out to the called party as 'revenue share' or is used to provide a discount off other services they supply. In some cases it pays off the lease of switchboard equipment that came with the deal.
The Mobile Termination Rate was more than 25p per minute in the 1990s. Mobile phone contracts did not have inclusive minutes to other networks. As the MTR fell, cross-network calls became possible. As the rate fell further the number of inclusive minutes went up. By 2009 the MTR was down to around 4p per minute. Ofcom intervened in the market to push it down further. By 1 April 2017 it will be 0.51p per minute which is just below the current termination rate for calls to 03 numbers.
Termination rates for calls to mobile numbers in Jersey, Guernsey and Isle of Man are still in the range 1.2p to 1.5p per minute and are also coming down over time.
Most people make calls to 01, 02 and 03 numbers using some sort of inclusive allowance. This may be an 'anytime' call plan on a landline or it may be a contract or a pay-as-you-go monthly add-on or bolt-on on a mobile. In all cases phone providers treat these as 'discount schemes' over their published per-minute rates. Numbers starting 084, 087, 09 and 118 are premium rate numbers, the premium is separately declared as the Service Charge. Most providers have decided to not offer an inclusive discount covering the Access Charge component of these calls.
As the Access Charge is separately declared it is now a simple matter to compare providers. Most providers have set their Access Charge for calls to 084, 087, 09 and 118 numbers at the same rate as a non-discounted chargeable call to an 01, 02 or 03 number. If you make a lot of these calls pick a provider with a low Access Charge.
One effect of having a single Access Charge per tariff is that the cost of calling 09 and 118 numbers has decreased by up to £1 per minute from landlines and up to £4 per minute from mobiles.0 -
Bit of a contradiction there don't you think?
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I don't think this is necessarily a contradiction, as the first paragraph relates to what consumers are charged, while the second paragraph relates to how much of the charge gets passed on to the phone company who receives the call. What that means is your phone company makes less money when you call an 03 number.
(This assumes I've understood things correctly, but I'm sure Ian011 will clarify things.)0 -
Not at all.Bit of a contradiction there don't you think?
Those figures are the regulated maximum termination rates.
Ofcom requires the retail cost for 03 numbers to be no more than that for 01 and 02 numbers.
As well as the termination fee, the caller's provider will also have to pay transit costs to route the call to the terminating provider.
Calls to 01 and 02 numbers have far end handover and large transit costs. Calls to 03 numbers have near end handover and low transit costs. The sum of the transit costs and the termination fee for calls to 01 and 02 numbers is nearly identical to that for 03 numbers.
The transit cost will vary with carrier and route. The termination fee will vary by terminating provider as well as by prefix.
@trf0412 You understood it very well.0 -
Ofcom does not permit variable charges for 03 numbers. Their rules require that 03 numbers are charged the same as calling 01 and 02 numbers and count towards inclusive allowances on landlines and on mobiles in the same way.Not at all.
Those figures are the regulated termination rates.
Ofcom requires the retail cost for 03 numbers to be no more than that for 01 and 02 numbers.
As well as the termination fee, the caller's provider will also have to pay transit costs to route the call to the terminating provider.
Calls to 01 and 02 numbers have far end handover and large transit costs. Calls to 03 numbers have near end handover and low transit costs. The sum of the transit costs and the termination fee for calls to 01 and 02 numbers is nearly identical to that for 03 numbers.
So not the same then?
.Don`t steal - the Government doesn`t like the competition0
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