Ofcom consults on new approach to 0870/1 and 0844/5 numbers

Ofcom has published new proposals to increase consumer protection measures governing the use of 0870/1 and 0844/5 numbers.

0870/1 and 0844/5 numbers (known as Number Translation Services or NTS) were introduced in 1996. Calls made to these numbers, which are not geographic numbers, have been priced at a level that has enabled businesses to share the revenue generated by per-minute call charges.

These numbers benefit consumers and businesses by enabling access to a range of services, including dial-up pay-as-you-go internet access, travel enquiries, tele-voting, telephone banking and many others. However, the growth and spread of usage of these non-geographic numbers in recent years has generated high levels of consumer concern about the lack of clarity in the pricing and marketing of these services.

Ofcom's initial proposals, published last October, prompted a range of responses from consumers and industry, including some significant disagreement.

Ofcom is now consulting on its new proposals. The key points include:

1. 0870: END TO REVENUE SHARING. Ofcom proposes that all calls to 0870 numbers should cost the same as calls to national-rate geographic numbers. This change would bring the cost of calling 0870 numbers down significantly. This price reduction would effectively end revenue sharing on 0870 when combined with other proposed changes to NTS call regulation.

Communications providers wishing to charge more than the rate for calls to national-rate geographic numbers would be required to provide a pre-announcement informing the caller of the cost of the call.

Ofcom proposes that providers should have up to 12 months to implement these changes. In the interim Ofcom proposes that 0870 call prices should not increase beyond their current levels.

2. 0871: RE-CLASSIFIED AS PREMIUM RATE. Companies using 0871 numbers would be regulated by the premium rate services regulator, ICSTIS, and would be subject to the same requirements as companies using 09 numbers.

3. 0845: NO CHANGES FOR THE NEXT TWO YEARS. Many Internet Service Providers (ISPs) currently rely on 0845 numbers to offer dial-up pay-as-you-go internet services. Maintaining the current arrangements would protect these services for more than 5 million UK dial-up internet users.
At present it is also often more cost effective for more than 1 million consumers on low incomes using BT's Light User scheme to dial an 0845 number than to make a national-rate call to a geographic number.

4. 0844: INCREASED PRICE TRANSPARENCY. Changes to current prices (up to 5p per minute, with a 5p minimum charge, for BT customers) are not proposed at this time. However, Ofcom is proposing that providers should be required to publish more comprehensive and accurate pricing
information. Ofcom plans to monitor the types of service offered on 0844 very carefully and will consider taking action if providers start to offer services on 0844 which are better suited to other number ranges.

5. IMPROVED CONSUMER INFORMATION. Ofcom proposes to require providers to give consumers better information about the cost of calling 087/084 numbers. To implement this, Ofcom is consulting separately on changes to General Condition 14, set under the EU Telecommunications Framework.

6. ADVERTISING AND MARKETING. Ofcom will continue to provide support to the Advertising Standards Authority/Committee of Advertising Practice ('ASA/CAP'), whose guidance requires advertisers to provide consumers
with pricing information for calls to NTS numbers. The guidance currently states that advertisers should not refer to 087 or 084 numbers as being charged at the "national" or "local" call rates.

7. ADULT SERVICES CONFINED TO 09 NUMBERS. Ofcom also wishes to clarify that all adult services should be provided on the 0908 and 0909 ranges. This means that any adult services currently on the 08 number range will be required to move to the 0908 and 0909 ranges where they will be
subject to regulation by ICSTIS.

8. USE OF NTS NUMBERS BY PUBLIC BODIES. Ofcom has already stated that, in its view, it is inappropriate for public bodies to use NTS numbers exclusively (i.e. without giving equal prominence to a geographic alternative) when dealing with people on low incomes or other vulnerable groups. Ofcom has also contributed to the Government's Central Office of Information (COI) best practice guidance on how NTS numbers should be used. Ofcom would like to see greater compliance with the COI's guidelines.

These measures aim to give consumers improved confidence in services using 0870/1 or 0844/5 numbers. Ofcom believes that the new proposals will prevent inappropriate use of these numbers and deliver clarity for consumers without disrupting important existing services such as dial-up
internet access. Ofcom also believes that this approach will deliver greater certainty for telecoms companies carrying NTS calls.

The deadline for responses to the consultation is
6 December 2005.

Answers to frequently asked questions have been published at: http://www.ofcom.org.uk/media/mofaq/telecoms/nts/

The full consultation document is available on Ofcom's website at:
http://www.ofcom.org.uk/consult/condocs/nts_forward/

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