Designation of 08 special service numbers

Elizabeth Greenberg

Numbering Policy Adviserelizabeth.greenberg@oftel.gov.uk

The issue

• amongst Oftel’s objectives is to ensure consumers have reliable information and are adequately protected

• are consumers calling special service numbers receiving a good deal in terms of pricing transparency?

• is the designation of 08 numbers confusing and misleading consumers?

• links to Melanie Johnson MP’s initiative for increased tariff transparency for 0870 numbers

Current designation of 0845 and 0870 numbers

• first few digits should indicate tariff• 08 ranges use a relative charging structure linking

non-geographic tariffs to that operator’s geographic local and national rates

• designed to give consumers a reliable indication of tariff

• consumers might expect calls to local and national NTS services to be priced the same as geographic local and national numbers

The problem

• there is evidence that originating OLOs are not aligning geographic and non-geographic local and national rate tariffs

• at certain times of day, some operators charge up to 3 times as much for non-geographic calls

• there is a consumer protection issue if consumers are being misled and confused over the tariff

• tariffs may be advertised as local/national rate but if that promotion is misleading it may be an offence under the Consumer Protection Act 1987

Oftel’s considerations• an examination of operators’ price lists found that

basically only BT aligns geo and non-geo tariffs

• Convention A6.2 provides that non-geo local and national rate tariffs should be aligned to geo tariffs, however, the Conventions are applied to the range holder and not the originating operator

• OLOs cost of call origination may be valid

• a fixed rather than relative charging system may better protect consumers

• therefore, Oftel plans to consult on the merits of adopting on 08 charging system based entirely on fixed charges

Fixed tariff vs relative chargingin support of fixed tariffs

– confusing to link tariffs of separate markets– terms ‘local’ and ‘national’ imply tariffs match– operators increasingly structure geo tariffs according to time-

of-day gradients rather than distance– calling circle discounts might not be applied equally– a tariff ceiling gives indication of maximum cost

in support of relative charging– majority of consumers originate calls with BT, where geo and

non-geo local and national rates are aligned– operators may raise tariffs to the fixed ceiling

Summary

Oftel is interested in views on:– whether consumers are being misled

and the level of consumer detriment– the best approach to ensuring

consumers are adequately protected– re-designating 0845 & 0870 ranges

and will be consulting during the summer