So, Ofcom, after years and years of research and consultation have rushed into action to change the 0870 charging system on 1^st August.In their own words: “These new rules will encourage communications providers to stop charging higher prices for calls to 0870 numbers … These measures may significantly reduce the cost of calling 0870 numbers.” (emphasis mine)

So what will change?

The official definition of 0870 numbers will be changed and communications providers will be bound by strict rules about how prices will be publicised. Ofcom also plan to encourage the industry to reduce their internal charging rates for these calls so that there is an incentive to charge less to the customer and less of an incentive to share revenue with the service provider.

What difference will it make?

Well, BT and Utility Warehouse have already pre-empted this change by including 0845 and 0870 numbers in their calling plans – making calls effectively free to a large proportion of their customer base. It is likely that market forces will prompt other landline providers to follow suit. Ofcom’s encouragement may speed up this process – or Ofcom may simply end up taking credit for a market-led process that started without their help.

Crucially, though, this is unlikely to influence mobile phone operators who are routinely charging customers for 0800 “free phone” calls. Many people now make the majority of their calls on mobile phones now so a large part of the market is not addressed.

Will it end the confusion and stigma of 08xx numbers?

Frankly, no; as Ofcom itself notes, many service providers have already fled the unpopular 0870 number range in favour of 0844 or 0871. These proposals do not affect either of these number ranges and the confusion about calling rates across the whole band will very much continue:

• The 0800 range continues to be referred to as “free” even though most mobile operators charge for calls.

• The 0844 and 0843 range can cost anything from 1p to 5p per minute, or per call, or both – with no clear way for customers to see which numbers charge which rate.

• The 0845 “local call rate” range is unchanged with operators free to charge or not as they see fit

• The 0871, 0872 and 0873 ranges are now regulated by the premium rate calls regulator but, like the 0844 range, charges vary across the band so, as a customer, you cannot tell from the number what you are likely to be charged.

• The 0870 range is going to be “more like” the 03xx geographic rate numbers – but not exactly the same. Operators are merely encouraged to charge the same for it.

So there you have it. All very clear then!

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