0870 number

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An 0870 number is a United Kingdom dialling code, defined by Ofcom as "Special Services: Higher Rate".

When originally introduced, it was charged at BT's standard national rate, where carried by BT, but now that BT have changed their pricing structure and there is much lower-priced competition from other providers 0870 and other NGNs are much more expensive than normal calls from the least expensive providers, and via BT, particularly relative to the cost from public telephones and mobiles. [0870 has been reclassified at various times in BT's price list as "Premium Rate".] This is one of a series of so-called Non-Geographic telephone Numbers (NGNs) which have been abused since their introduction originally as pure NTS numbers, to be used as covert Premium numbers with call queuing permitted. These abused NTS numbers include: 0870, 0871, 0845, 0844 and 070 PNS. The principal attraction of these numbers to companies, entities and the UK government (who increasingly are using them for additional stealth tax purposes) is that call queuing is permitted whilst per minute revenue is being generated, which can allow call centres particularly to generate very large amounts of revenue with high call volumes. Questions have been asked in the UK House of Commons concerning the amount of revenue which the UK government is generating from using call queuing on these numbers. It is claimed that calls to Welfare Benefit Claim and Retirement Pension lines are being charged in this way, which many may find objectionable.^{[citation needed]}

0870 is a non-geographic NTS number; that is, it does not relate to any particular location within the United Kingdom, but is translated to one - unlike a standard geographic (01 or 02) telephone number which does relate to a specific location. From a BT line, it costs 6p/min in the daytime and 1.5p/min in the evenings (plus VAT) to call. However, it can cost up to 10p/min from other providers, and up to 40p/min if calling from a payphone or a mobile phone because of the Premiums which have to be transferred. Most of the significant Premium revenue with 0870 numbers and other NGNs is made from abuses with call queuing.

1 History
2 Pricing
3 Future
4 References
5 External links

[edit] History

The 0870 code was originally introduced as 0990, the code formerly used for Ascot, when it was subsumed into 0344 (Bracknell). 0990 numbers were originally six-digit, and when 0870 was brought in to replace 0990, the six-digit numbers were prefixed with a 5 to make 0870 5xx xxxx. Mercury Communications Ltd (now Cable & Wireless) had a similar scheme, with its numbers beginning with 0541. Like 0990, they were also renumbered into the 0870 scheme, with the numbers becoming 0870 1xx xxxx. Other operators (such as Vodafone) also had national rate codes and were renumbered in a similar way.

Like 0845 numbers, 0870 numbers have much of the same features and benefits, such as routing by time of day, location of caller, day of week, capacity, etc.

[edit] Pricing

When 0870 numbers were originally introduced, they were called national rate numbers. This is because they cost the same as a call to a telephone number outside of your local dialling zone.

However, since 2004, the distinction between local and national rate calls has been abolished - it is now incorrect to refer to 0870 numbers as national rate. While the cost of geographic calls (01 and 02) has dramatically dropped due to competition, with many tariffs including unlimited calls to such numbers in their price, the cost of non-geographic calls (such as calls to 0870 numbers) has remained high. This difference is often passed back to the call recipient in the form of a revenue share (for example, up to almost 5p a minute for the highest call volumes), although this does not always take place, in which case the revenue is shared amongst the call carrying telcos. Ofcom and BT for years disputed that this "revenue sharing" with NGNs was in effect identical to that for Premium calls. However they have both now publicly admitted that it is the same as with Premium calls. Indeed Ofcom have decided to make a complete "u" turn by transferring the regulation of 0871 numbers to PayphonePlus (which was previously ICSTIS) which regulates all UK Premium numbers, therefore admitting that 0871 is in reality a Premium number - but allowing call queuing to continue. This is the first of what clearly is going to be an increasing anomaly in the UK, since call queuing is actually prohibited with all Premium numbers (as in most of the civilized world.) It seems that this is now seen as the way to allow call queuing to continue with some Premium numbers in the UK, so as to circumvent the original decision of Oftel - that call queuing on Premium numbers was very much against the consumers' interests. There will probably now be a whole series of other NGNs, which Ofcom for years denied were being used as Premium numbers with call queuing, transferred to the regulation of PhonepayPlus, including 0870 which Ofcom have now postponed taking any action with, to allow call queuing to continue whilst charging the Premiums. Some new 08--- numbers have already been planned by Ofcom to extend this range of Premium numbers with call queuing permitted.

There is increasing consumer opposition to 0870 numbers due to this per minute revenue sharing, most of all because call queuing is permitted whilst charging and thus revenue generation continues. This is because the public have become increasingly aware of the per minute revenue sharing with non-geographic numbers. (The public is clearly aware of the situation with overt 09 Premium rate numbers, where prices have to be clearly indicated, and on which call queuing is specifically prohibited). There has been increasing media coverage^[1]^[2] which has raised awareness of this.

Some consumers have sought ways of avoiding calling 0870 numbers by instead calling a non-advertised geographic number.^[3]

[edit] Future

Ofcom originally announced that from February 2008, revenue sharing on the 0870 number range would no longer be allowed, and that a new range of non-geographic numbers will be made available to service providers in the '03' numbering range, known as UK-wide codes, for those organisations who require a national presence, but who do not wish to charge Premiums to consumers for contacting them. Ofcom also were going to permit the higher rate of charge for 0870 numbers to continue provided that there was a Public Announcement before the Call (PAC). However, since that announcement Ofcom has changed its decision, because of Health and Safety implications^[4] and now postponed any changes with regard to 0870 number range. It seems this may be because they now intend to move 0870 numbers under the regulation of PhonepayPlus as with 0871, to continue as Premium numbers with call queuing permitted. Originally Ofcom had announced that call tariffs for 0870 were going to change to being the same as for geographic numbers, unless there was a PAC, but now for the foreseeable future this will not be so.) The call tariffs and call discounts for the 03 range will be the same as if the consumer was calling a geographic (01 or 02) number, The new 03 range is also intentionally numerically next to the existing geographic number ranges.^[5]

It remains to be seen which organisations will move to the new 03 range and how many will migrate to the 0844, 0845 or 0871 number ranges, as some have already been doing, to continue receiving Premiums with call queuing permitted. Any migration will now be delayed until Ofcom have announced their new decision for the 0870 number range.