Oh Eight Seven No!

Premium-rate telephone numbers starting 087 are a huge rip-off. The good news is that regulator Ofcom is set to tighten the rules.

This article was first sent to Fools as a standalone email in our 'The Good, The Bad and The Ugly' email series. 

If you use a telephone, then have I got (good) news for you...

Communications regulator Ofcom has announced that it is planning to stiffen up the rules surrounding those infuriating 0870 and 0871 numbers. I'm delighted to hear this, because I consider 087 numbers to be one of the biggest rip-offs in Britain today.

In case you're not familiar with 087 numbers, these non-geographic numbers are used by businesses, other organisations and the government to generate revenue from incoming calls. These premium-rate numbers are charged at the following per-minute tariffs:

Often, 0870 numbers are described as `national' rates when, in fact, they are much more expensive than calling UK geographical numbers. As for 0871 numbers, at a fixed rate of 10p per minute, they are nothing short of a disgrace!

Personally, I refuse to call 087 numbers. Any organisation which forces me to do so will most likely lose my custom. My view is simple: why should a company make money from my inbound calls, especially if I'm calling for help or to complain? Instead, I look up geographical alternatives on the excellent Say No To 0870 website.

Ofcom steps in

In order to address consumer concerns over a lack of transparency and the cost of calls, Ofcom has issued a set of proposals as part of a consultation on 087 numbers. Ofcom proposes that 0870 charges should be reduced, and these tariffs should be better displayed. As for 0871 numbers, they will be subject to entirely new regulation. About time too...

0870? No!

Ofcom suggests that 0870 calls should normally cost no more than calls to geographic numbers (beginning 01 or 02). Furthermore, it recommends that 0870 calls should be included in the call packages and price plans offered by telephone-service providers.

If providers wish to charge 0870 call rates above those for geographic numbers, then they face stricter rules governing how prices are publicised. Furthermore, they must ensure that customers know exactly how much 0870 calls cost. Failure to comply with these rules could lead to penalties, including fines.

In effect, Ofcom's proposals would end the revenue-sharing that makes 0870 numbers so attractive to businesses and other organisations. Of course, these steps should lead to a dramatic reduction in the cost of 0870 calls, which will be of great benefit to consumers.

087...1 big rip-off

As for 0871 numbers, Ofcom intends to bring these under the same regulation as applies to (hugely expensive) 09x numbers. Bringing 0871 numbers within the remit of the premium-rate services regulator PhonepayPlus (formerly called ICSTIS) should improve consumer protection for callers.

Under these new rules, businesses must publish 0871 call charges in their advertising and promotional materials. Also, PhonepayPlus would investigate complaints about excessively long call-queuing times, but only after these have first been referred to the service provider.

Alas, these changes will not take immediate effect. Following consultation with the telecommunications industry, Ofcom aims to publish its decision in the summer. Changes to 0870 numbers should take effect this autumn, with 0871 numbers being regulated by PhonepayPlus by the end of the year.

So, thanks to Ofcom, these ugly 087 numbers are set to become much prettier in future. Hurrah!

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