Ofcom bans 0870 revenue sharing

Companies with an 0870 helpline will no longer receive a cut of revenues generated from customer calls.

Under new Ofcom rules, effective from 1 August 2009, revenue sharing for 0870 numbers is now illegal.

In addition, companies will have to inform customers exactly how much their 0870 number costs to dial.

Ofcom set up the ban in a bid to bring the price of 0870 calls down to the same rate as geographic numbers.

UK-based cost consultants, Expense Reduction Analysts, said companies that previously used an 0870 number to generate revenue will lose out.

“The Ofcom ruling effectively spells the ultimate death knell of certain revenue sharing calls,” said Nigel Rosehill, ERA’s head of communications.

“For example a company that has been receiving 100,000 call minutes per month via its 0870 telephone number would have generated some £36,000 a year on a rebate of 3p per minute.

“From the 1st August they could be charged £36,000 instead for receiving the same amount of calls on the same number – a difference of £72,000 on the bottom line.”

Network technology provider Opal echoed ERA’s concerns.

“If a business keeps its number then it will lose the revenue it generates,” said Geoff Wilson, Opal business development director.

“This needs to be replaced somehow, either by cutting costs in other areas of the business, stealth charges to the consumer, or by the business simply absorbing the costs.”

Source: The Telecom, 3rd August, 2009

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