Ofcom decision to remove 0870 rebate revenue

Background to the Pricing of 0870 National Rate Numbers

When the 0870 number range was created it was charged at BTs then standard national rate charges of 7.91p daytime, 3.95p evening and 1.5p weekend.

Businesses liked using “0870” numbers as they conveyed a “national” presence. The 0870 number allowed businesses to advertise just one telephone number to their customers through which all their services could be accessed regardless of the location of the company offices.

Over time call rates offered by telecom networks have dramatically reduced but the 0870 call charge was “frozen” in time. The difference between the call charge and the reducing network cost of delivering the call allowed a call payment (a rebate) to be made to the company owning the 0870 telephone number.

Companies owning 0870 numbers took advantage of these monthly payments to fund improvements to their call centre customer service either in call centre staff or interactive voce recognition (IVR) computer systems.

The success of 0870 was shown through its widespread use throughout the UK, being used by the Government (it is said that the government makes £1.25million from calls to the DVLA) and prestigious organisations such as the BBC.

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