Changes to service numbers

Changes to service numbers 1

2 Advice and information If your organisation uses a non-geographic service number for people to contact you, (that s one beginning 08, 09 or 118) you need to be aware of major changes. Research has found that telephone users are confused about how much it costs to call service numbers. This means people can lack confidence in these numbers, and sometimes avoid using them. Lupta volo peria volor landandus The new system will introduce greater confidence into this important market by enabling organisations to say how much calls to them will cost. The changes will be implemented in summer 2015 (implementation date is to be confirmed but likely to be 1st July 2015). The communications regulator, Ofcom, is working with major phone companies to communicate the changes to consumers under the campaign UK Calling. To help you make sense of the changes and understand the potential impact to your organisation we ve put together some information which will help answer questions you may have. What is UK Calling? UK Calling is the information campaign being led by Ofcom, the communications regulator, to help explain the changes that are happening to make telephone charges clearer. Ofcom is working together with major phone companies. Where can I get more information? Ofcom have set up a website, www.ukcalling.info, to provide more information. It is available now but will be actively promoted in January 2015 to support a national consumer campaign. How service number call charges work today At present, the information you see or provide about the cost of calling a service number often looks something like this: Calls will cost 10p per minute from a BT landline. Other landlines may vary and calls from mobiles may cost considerably more. From the consumer s perspective this makes it difficult to know what the call will cost, unless you happen to be calling from a BT landline. 2 2

How will it work in the future? From summer 2015, the cost to the consumer of calling a service number (starting 084, 087, 09 or 118) will be split into two pieces: 1. An access charge. This goes to the consumer s telephone company. The access charge for calls to service numbers will be made clear on consumers bills and contracts. The access charge will be a pence per minute (ppm) rate 2. A service charge. This is the remainder; it includes any revenue going to the service provider (that s you, the party being called), as well as revenue going to the terminating call provider (the company which provides the number to you) At the same time, all Freephone numbers beginning 0800, 0808 or 116 are being made free for consumers to call from mobile phones, just as they usually are from landlines. Let s take an example Say Sue s phone company charges her 2ppm for calls to service numbers that is their access charge. And let s say the service charge for a particular number Sue wants to call is 10ppm. In that case, Sue would see information like this: Calls will cost 10p per minute, plus your phone company s access charge. In this particular example, the call would cost 10ppm (the service charge), plus 2ppm (the access charge). So the call would cost Sue 12p per minute. Which numbers are affected? These rules will apply to all consumer calls to 084, 087, 09 and 118 numbers across the UK, delivering clearer call rates for everyone. Calls to other numbers those beginning 00, 01, 02, 03, 05 or 07 are not affected. Do the changes apply to calls from mobiles or landlines? Yes, they apply to calls to service numbers from both mobiles and landlines. Do the changes apply the whole of the UK? Yes, they apply across the UK. This does not include the Channel Islands or the Isle of Man which have their own structure for these calls. Will the changes affect me on my home phone? Yes, in order to make the cost of calls clearer the way these numbers are being charged for will change from 1 st July for your home phone or mobile. We ll be announcing more nearer the time but for now you may find this information useful: http://www.kc.co.uk/products/phone/uk-calling/ 3 3

What s happening to the Freephone numbers? All Freephone numbers (which begin 0800, 0808 or 116) are being made free for consumers to call from mobile phones, just as they usually are from landlines. Will 0500 Freephone numbers become free to call from mobiles? 0500 is a legacy Freephone number range. 0500 numbers are not part of these changes and calls from mobiles to these numbers will still be charged for. Ofcom has decided that the 0500 number range will be withdrawn from use in 2017. Who will meet the cost of Freephone calls from mobiles? The recipient of the call will be responsible for paying for the call, just as they are for calls from landlines at present. The origination charge for the call will be subject to regulation that requires it to be fair and reasonable. Ofcom has set out guidance as to how this should be interpreted. There may be an increased cost of operating an 0800, 0808 or 116 number, but the size of the increase will depend on the balance of fixed and mobile calls you receive. You should discuss this with your call provider. Are there any phone numbers changing? The new arrangements do not require any telephone numbers to change. None of the organisations offering services on service numbers will be required to change their number. Of course, businesses and public organisations remain free to move to a new number if they wish. Will the cost of calling the number(s) I use change? If you use a number starting 080 or 116, this will become free to call for consumers from mobile phones. For the other affected number ranges, the access charge element of the call will be determined by the caller s telephone provider. Because the access charge will apply across the different non-geographic number ranges, there may be a small change in the overall cost of some calls. You will be advised of the service charge which will apply to your contact number by your call provider ahead of the implementation of the changes. I currently receive a share of the revenue from calls. Will I have to disclose how much I receive from each call? 4 4

You will not be obliged to disclose how much you receive from a call. However, you will have to disclose the service charge for the call. The service charge is the sum of all revenue from the call which is not retained by the caller s telephone company. The service charge will be the same from all telephones, and the level will usually be set for a given block of numbers allocated by Ofcom (usually these are in blocks of 10,000 numbers blocks). Your call provider will be informing you what the service charge will be for your service numbers. Is Ofcom going to impose caps on the price of calls to certain numbers? Calls to numbers starting 080 and 116 will be free to call for consumers. There will be caps on the maximum amount of the service charge for the other affected non-geographic numbers, with the exception of 118 directory-enquiry numbers, with the caps varying according to the number range. The 084 and 087 ranges will be capped at 7p and 13p respectively (per minute, or as a fixed fee, and including VAT). The 09 range will be capped at 3.60 per minute and 6 per call (including VAT). When will these changes happen? All the changes will be implemented in summer 2015. Ofcom are running a national consumer campaign, UK Calling, from 5 January 2015 to make telephone users across the UK aware of the changes in plenty of time. Why are we telling people about these changes now? For the telecoms industry, the new system requires major changes. Ofcom is working with telephone companies to ensure they are prepared. Ofcom is also working with organisations which use these numbers to make sure they understand what is happening and how to update print or online material where they promote these numbers. What do you need to do? You may want to discuss how this might affect your organisation and how you use service numbers with your call provider. It s advisable to make your Customer Service and Marketing teams aware of the impending changes so they can plan for them too. The new service charges for your contact numbers will be formally communicated to you thereby providing notice to update marketing communications material to include the service charge. This is important because, for the first time, organisations will have to make clear the cost of calls to service numbers on print and online material which they produce. This information should take the form: Calls cost xp [or xp per minute], plus your phone company s access charge. If you use a Freephone number for people to contact your organisation, you may also wish to discuss the implications of these calls becoming free from mobile phones. 5 5

My business uses numbers affected by the access and service charges. We currently do not have to publish pricing information in adverts. Will that change? Yes, in future you will need to include information about the cost of the service charge for calling these numbers in any print or online material. This will bring these numbers into line with other non-geographic numbers. Will every piece of material which promotes my contact number need to carry details of the cost of calls? Who will enforce this? PhonepayPlus and the Advertising Standards Authority (ASA) will continue to regulate this area. More information is available on their websites, including details about what types of material falls within their remit. The 084 number range and any 087 numbers with a service charge of less than 7p per minute (or 7p if the call has a fixed per-call charge) will be regulated by the ASA. The 09 and 118 number ranges, as well as any 087 numbers with a service charge of 7p per minute (or a 7p fixed per-call charge) or higher, will be regulated by PhonepayPlus (all figures are inclusive of VAT). What happens if I don t include this information on everything from the day the changes come into force? Will there be penalties? PhonepayPlus and the Advertising Standards Authority will be responsible for enforcing the requirements for including service charge information. Information about their penalties for non-compliance is available on their websites (and the website of the ASA s sister body the Committee of Advertising Practice www.cap.org.uk). Making calls from business phones Will access and service charges apply to calls made from business lines to non-geographic numbers? Most businesses make outbound calls to 08, 09 or 118 numbers. The new charging system (the access and service charges) applies to calls made from residential lines and consumer mobile phones. However, Ofcom anticipates that providers may extend the same pricing arrangements to business customers. You should speak to the phone company which provides services to your business about this. Can I insist that my phone provider applies the access and service charge regime to my business landline of mobile phone? The tariff package for your business contract for non-geographic calls will be subject to the same type of negotiation that occurs when you are signing up to, or renewing, your tariff package as a whole. Therefore, you can make this request to your phone provider as part of that negotiation. However, there will be no obligation on providers to apply the access charge and service charge structure. 6 6