You may, or may not be aware that on 8th January 2008 Ofcom will force telecoms companies to change the cost of calling 0870 numbers for good. From 2008 it will cost the same to call an 0870 number as it will an ordinary national number.
Ofcom have also removed the revenue share element of calling these numbers. Operators receive a share of the income generated by calls to 0870 numbers which enables them to provide the numbers at either no, or very low cost. But, compounding the end to revenue sharing is the fact that Ofcom have stated that businesses will actually incur charges of approximately 3p per minute to receive calls to their 0870 numbers.
My feelings as a consumer? Great, now I’m not going to be charged for the privilege of calling my bank, hotel or call centre. In fact from 2008 it will cost them to receive my call - a 180 degree turnaround.
But it’s not that simple, businesses operating and receiving revenue from us calling their 0870 numbers need to migrate to other revenue generating numbers such as 0844 and 0871. And 0845 numbers are predominately charged at a call rate far higher than the advertised local rate.
What to do? A change in the importance of low cost access to business by their clients, customers and suppliers is paramount. The provision of a straightforward communication access as a high priority service will always be a discussion point when, as a consumer, you are selecting a business / product to work with. It’s the very reason why supermarkets do not charge us for parking in their car parks. Easy access encourages regular visits which equals revenue to them.
What will the large corporate do from 2008? Maybe it’s too early to tell. After all they have spent time and money promoting and marketing their 0870 number as their identity (and generate revenue from that number). No doubt many will migrate to other revenue generate numbers and others will adopt 0800 or normal geographic numbers.
What would I like? Businesses need to be encouraged to view their clients and suppliers as an opportunity to help them enhance their services and understand what’s needed - not as a means of a tiny amount of increased profit from some 3p a minute kick-back. Surely, quality services and good communication are value add elements of a business and not cost centre controlled.
For our part, as a communications company who promotes the use of normal geographic numbers, we are investigating what services as a VoIP provider we can provide to enhance and offer businesses large and small a way to transform their 0870 identity. By using VoIP, its possible to have geographic, international and 0800 numbers that replace 0870 numbers and help promote an image of clear communication with clients and suppliers.
We will be watching and reporting on the fate of 0870 and via our blog offering consumer friendly alternatives for the future changes.
(As an aside if you do not want to contact business via their 0870 or 0845 numbers visit www.saynoto0870.com for a comprehensive list of alternative geographic numbers to contact these business).
You can also find more information on Ofcoms decision here
Information on 0871 numbers moving to premium rate can be found here