Ofcom puts cheaper 0870 numbers on hold

There was bad news for home phone users yesterday after it emerged the telecoms regulator has quietly delayed plans that would have seen the end of expensive 0870 phone calls.

Following a consumer campaign, Ofcom had agreed that 0870 numbers, which typically cost up to 10p a minute, should be priced at no more than standard landline calls. That was due to come into force on February 1 next year.

However, it emerged last night that Ofcom has delayed its implementation by a "short period" because of concerns that some household alarm systems would not work under the new regime.

Consumer groups complained that Ofcom told the telecoms industry of the delay but did not make a formal announcement.

The 0870 numbers, which can cost as much as 40p a minute if dialled from a mobile phone, have become a money-spinner for the companies called as they typically get about 40% of the call's cost. Almost every customer hotline and many government departments routinely use 0870 numbers. The calls often feature long waits on hold. In 2003, calls to numbers with an 08 prefix cost UK consumers £850m.

Ofcom had ordered that all calls after next February should cost the same as standard calls to numbers with an 01 or 02 prefix. Companies that wanted to carry on charging the higher rate had to warn of the call's cost at the start - something it has now discovered would not work with home alarm systems.

A spokesman for Ofcom said: "There's no change to our overall policy. The key point about these changes is bringing down the price of calls to 0870, which will happen in spring next year. The pre-call announcement option would only be relevant to providers who chose to depart from that general rule. We will keep any delay to a minimum."

David Hickson, a member of the Saynoto0870.com group, which offers consumers alternative numbers to call, said: "We have been waiting patiently for the new rules to come into place and finally end the rip-off that 0870 numbers represent. To find that Ofcom has suspended this at the eleventh hour is both frustrating and very disappointing."

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