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FCS UPDATE


More non-geo reforms I


n the competitive telecoms market non-geo numbers feature as important services to business end user customers. But the industry has been aware for some time that the regime is cracking and there have been successive disputes between telcos relating to termination rates. There are at least two regulators to add to the confusion. Furthermore, the public has become distrustful of these numbers, believing that they cost more to call than is the case. This has led to a decline in revenues for everyone.


For the past two years Ofcom has been reviewing this market by taking evidence from industry and customers and has now formulated major proposals for reform. This will affect everyone in the channel, either as number suppliers or as number users. Ideally, reforms will boost the income of number suppliers as customers make more calls and a fair distribution of revenue share results.


Firstly, what is a non geo number? They are 03, 05, 070 not mobile numbers, 08, 09, 116 and 118. Ofcom has concluded that two major changes are needed. There will be maximum retail prices: • All calls to 080 and 116 numbers will be free to callers on all phones.


• 03 numbers are linked to the price of a geo number call.


There will also be a new tariff structure for other non geo calls – separation of the access and service charge: • 08X number service charges will be up to seven pence per minute (ppm) for 084 and up to 13 ppm for 087 plus the phone company’s access charge.


Kieron James


Kieron James, Chairman of Nexbridge and Chairman of the FCS Numbering Group, explains the implications of proposed reforms for non-geo numbers.


• 09, PRS numbers, up to 145 ppm plus the phone company’s access charge.


• Shared revenue will continue where it is legal to do so.


At this stage there is no proposal for price caps on access charges, however there are price caps to service charges. What will this mean for CPs and resellers who bill


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customers? Firstly, the phone bill will show the full cost of a call (proposals to split out the access and service charges for each call have been dropped). There will be one access charge per tariff package and each service will have single service charge irrespective of which type of phone the caller was using to make the call. This means there will be fewer service charges. There is to be a new rule for service providers forcing them to tell consumers what their service charge is in adverts and marketing. Adverts must say, ‘Your call will cost you X pence per minute plus your phone company’s access charge’.


Ofcom has proposed a series of new icons for numbers to help the public understand the different type of telephone number. In its consultation Ofcom excluded mobile short codes from the review, despite growing industry unease. Ofcom has not supported pre-call announcements for all numbers.


There has been a thorny debate on regulation of the new non geo regime. Ofcom had floated the suggestion that PhonePay Plus take over management of 084 numbers as well as 0871. The vast majority of industry respondents did not support this proposal. FCS members across the country have told us that the 0871 service has suffered dramatic decline since PPP took over regulation in 2009. Ofcom has challenged industry to come up with an alternative such as reliance on ASA rules or a new industry code of practice.


The implications of Ofcom’s latest non-geographic numbering consultation are more far reaching than any of its predecessors and several aspects may well be appealed by sectors of the communications industry. As we enter a period of uncertainty over the coming months, your input will be essential. If you’re confused by the issues or would like the opportunity to join the debate, please contact numbering@fcs.org. uk. The closing date for responses to this consultation is 27th June 2012.n


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