Business un-prepared for Major OFCOM 0870 number changes
03/Jan/08
(Business)
Sometime in summer 2008 the cost of calling a 0870 number will plummet (the original date was January 31st but this has been pushed forward due to bad planning by Ofcom). Currently charged at 7.91p per minute peak (including VAT), when the changeover occurs this will fall to around 2p per minute, a massive price drop of almost 75%. This is great news for the consumer, but potentially devastating to the business that has invested heavily in advertising its 0870 number(s) not only in the short term but also in 'longer term' media such as the Yellow Pages and various other directories. Many companies have built their businesses around a memorable 0870 number and have invested heavily in advertising it - so future strategy must be carefully thought through in order to minimise the impact.
When the changeover occurs, for those companies that received it, there will no longer be revenue share on 0870 numbers. So whether it's 1p, 2p or 3p minute a company was getting, this will all end by summer 2008. Obviously, for the many organisations not receiving revenue share this is of little consequence.
The real blow however is that companies wishing to retain their 0870 numbers will have to pay up to 3.5p minute to receive calls. So not only will there be no revenue share but organisations seeking to retain 0870 number(s) will have the added cost of paying for incoming calls. BT has stated that it will be charging its customers 3.5p per minute (+ VAT) for a standard 0870 number or 4.5p per minute (+ VAT) for a 0870 number that is routed to different destinations.
For a company receiving say 50,000 minutes of incoming calls per month, instead of getting a revenue share of £1,000 (at 2p per minute) it will now have to pay £1,750 - £2,250 per month for the same calls which, on an annualised basis comes to £21,000 - £27,000. Obviously many companies generate far fewer minutes in which case the impact won't be anywhere near as great but there are major corporates for whom 1 million minutes or more per month is not uncommon. The impact on these companies will be considerable and most are now planning for the changeover - if indeed they have not already switched.
It is the smaller business that has by and large failed to plan for these upcoming changes. This article should serve as a wake-up call if they are not to be caught by surprise on changeover date.
How the Changes Came About
Most businesses are aware of these changes and the reasons for them. They have been written about extensively elsewhere. For this reason I won't repeat the details other than to say that the changes were brought about by a media driven consumer campaign protesting the price differential between calling a non-geographic 0870 number and a standard long distance geographic number (calls to which originally cost the same as calling 0870, but which is no longer the position). The case was strengthened by anecdotal evidence that some companies appeared to be keeping callers on hold for lengthy periods simply as a way of making money. In the end Ofcom was forced to respond. They held 'consultations' and then published their 'findings'. Many would argue that they went over the top without considering all the ramifications, but the impact on organisations using 0870 numbers is going to be considerable.
For more information on these changes you might like to consult the following pages:
OFCOM http://www.ofcom.org.uk/media/news/2006/04/nr_20060419
http://www.ofcom.org.uk/media/mofaq/telecoms/nts/
Your Options if your business uses 0870 numbers
You have five options and these are:
1. Carry on as usual. Keep your existing 0870 number and receive calls as you do at the moment. You need to be something of a financial masochist to favour this approach but it is an option if, and here is the caveat, your carrier will allow you. It is also an option if your call volumes are very low so that your monthly charges may not be all that great. However, many carriers and resellers do not have the expensive billing software that will enable them to give you a computer generated monthly bill and for this reason may no longer support 0870 numbers. It is important that you check with your carrier as soon as possible.
2. Divert to a new non-geographic number after first terminating your 0870 number at a carrier-provided voice mailbox (using a recorded message to announce your new non-geographic number). Some carriers can provide this service. Others don't. BT has announced that "due to the enormous volume of 0870 number changeovers, a Changed Number Announcement is unlikely to be available for everyone". Your new non-geographic number options would be 0844 / 0845 or 0871 numbers. By following this course you retain the 'goodwill' built up in your 0870 numbers. Numbers beginning 03 are also a possible option but bear in mind that it will COST around 3p minute to receive 03 calls. Also, there is very little public awareness of them and I don't know of any plans to mount a publicity campaign whether by Ofcom or any other organisation. So the public may be distrustful of an unfamiliar range. While some carriers are looking at these, many are not.
3. Divert to a new non-geographic number after first terminating your 0870 number at a voice mail box which you set up. Here you would get a new phone line with BT and connect to Call Minder or a cheap non-message taking Answering Machine. You then get your carrier to divert your 0870 number(s) to this line. The recorded message would then tell people to ring your new number which would be given in the recorded message. The disadvantage of this is that you will have the BT line rental of £41.15 per quarter, the Call Minder charge (£2.50 month) plus the cost of calls to the mailbox which should each be less than 1 minute. You should allow 3p-4p per call. The big advantage is that you lose none of the goodwill built up in your 0870 number.
4. Discontinue your 0870 number altogether and simply get a new 0844 / 0845 or 0871 number. This may be your only option if your carrier can't provide you with a voice mailbox and you don't want to set one up yourself. The obvious disadvantage is that you'll lose the goodwill built up by your former use of the 0870 number and the cost of this could be significant. So, unless you feel there is no 'goodwill' in your 0870 number then treat this approach with care. Remember also that even if you think there is no value in your 0870 number, your competitors may think differently - and may very well seek to acquire your number should you decide to relinquish it.
5. Use a local geographic number such as 020; 01273. The big disadvantage here is that by giving up your 0870 number you will lose:
a. Any goodwill built around your number as well as future calls to that number unless you combine this approach with (3) above
b. The national identity that a 0870 number has given you
c. Portability, since the local number can only be moved within the area served by your local exchange. In major metropolitan areas this could mean a radius of no more than 1 or 2 miles from the exchange
d. Any special features that you may have enjoyed with your 0870 number such as call queuing, fax to email, IVR, etc.
http://www.0870ver.co.uk
I'd listen guys! When I first heard about it I was gob smacked.
Get in early and save your hard earned cash.
Adam Hawas.
Posted by:
Adam
Hawas
on
04/Jan/08 14:10
0870 Changes –
Consultation Period Closed
The consultation regarding changes
to 0870 numbers is now closed. (16th June
2008)
Whilst we are waiting for OFCOM to
confirm the change date. (Expected to be this autumn)
Here is a summary of changes that
will affect your business if you use 0870 numbers:-
- If
you receive revenue share, it will stop
- You
will start paying to receive your telephone calls
If you’re present provider has not
confirmed their position or offered you an alternative? Now is the time to
consider our solution.
Posted by:
Don
Bradley
on
20/Aug/08 05:52
Lascom Solutions Ltd is pleased to announce the launch of their new online
number shop. There customers can browse a range numbers, freephone,0845,0844 and
0871 and choose their number.
http://numbers.lascomsolutions.co.uk
Numbers are just £9.95 this includes sameday setup with your own secure login
to the ICS control platform were you can add a range of call services like,
greeting messages, auto attendant, voicemail, fax2email and many more.
Why would you want to use 08xx numbers?
Call
routing
NTS numbers can help you to control
where and when your calls are received. There are many options available,
including routing calls based upon time of day and day of week, routing on no
answer or busy to another number or voicemail and even routing based on the
geographical location of the caller.
Generate
revenue
Certain types of NTS numbers 0844,
0871 can be used to generate revenue, this makes them ideal for companies that
are providing a service of value to the caller.
Increase sales
response
Free phone numbers, 0808 for
example, are widely recognised as a very powerful marketing tool, research has
shown that advertising responses can increase significantly when using one.
Professional
image
NTS numbers are usually associated
with large companies that have a wider presence or image, therefore the use of
these types of numbers could possibly help to improve perception and image for a
smaller business.
Portable
Companies sometimes move premises
and it’s not always possible to keep the existing telephone number, this can be
a problem regarding company literature, signage or even your customers being
able to contact you. By using a NTS number, this problem is easily overcome and
you’ll never miss a call, simply by changing where it translates to.
Monitor
marketing
Many NTS numbers can be pointed to
the same telephone number, which gives the opportunity to use different numbers
for different promotions, allowing you to measure the effectiveness of your
marketing against budget. For example, a company could use different numbers in
Yellow pages & Local adverts, to the o
Posted by:
Don
Bradley
on
07/Nov/08 09:43
0870
Charges
Had
your bill yet? £10, £20, £30, Or more?
Don't delay
free of charge we will put a redirection announcement on your number so you
won’t get any more charges when you take your calls!
Call us now 08444 127 009 solution hosted by cable
& wireless
OFCOM
have changed the way 0870 numbers work
What
these changes mean to you
The
introduction of call charges to receive your calls will drive additional costs
into your business. We are keen to make business aware of a FREE of CHARGE solution we offer so these
additional charges can be stopped.
Companies that continue to use 0870
numbers after 31st July 2009 will face increased costs in the form of charges
(pence per minute and/or monthly charges).
Our
Solution
If we can
transfer your 0870 number to Cable & Wireless, we can offer you FREE of CHARGE a new 08xx number and put a
redirection announcement on your 0870 number. The charges you are now receiving
with stop immediately
www.0870charges.co.uk
Posted by:
Don
Bradley
on
19/Sep/09 12:51