Ofcom Proposes New Measures to Help Clarify UK Telephone Charges

The UK telecoms regulator has today proposed a series of “major changes” to how phone call charges are handled, which is designed to make the cost of calling businesses and services clearer for consumers (focus on 08, 09 and 118 numbers). Calls to 080 numbers could also become free from “all telephones” including mobile.

An Ipsos MORI survey of more than 2,000 UK people, which was conducted in October 2011, found that the majority of respondents didn’t know the cost per minute of making calls from their fixed line to “any type of telephone number” (here). By comparison the proportion of people who claimed to know the cost per minute of calling 07 numbers was just 12%, which increased to 14% for 0845’s and down to 7% for 0870 numbers.

Part of the reason for this is because different ISPs and telephone providers can charge different amounts for calling the same numbers. On top of that businesses and public services often operate lines that may have a similar degree of price diversity. According to Ofcom, unless you’re using a BT landline, it can apparently be very difficult for callers to 08, 09 and 118 numbers in particular to tell how much they will be charged.

Ofcoms New Proposals – Statement

“Consumers will pay a single ‘access charge’ to their phone company for all calls to these numbers, plus a ‘service charge’ to the company or organisation they are calling.

Phone companies will inform their customers of their access charge when they sign up to a new service, and it will appear on bills; while service providers will specify the charge for their service wherever they advertise or communicate it. Consumers will therefore be able to understand the exact cost of making the call by adding the access and service charges together.

Ofcom also intends that calls to 080 (Freephone) numbers will be made free from all telephones. At present some phone companies, particularly mobile providers, charge for calls to such numbers.”

The regulator notes that its proposals represent a “fundamental restructuring of call charging” and will require new “legal instruments“. As a result Ofcom has opened a new consultation, which will run until 28th May 2013. Unfortunately the regulator doesn’t expect to publish its conclusion for another 18 months, which gives operators a “reasonable time” to implement the changes. See you next summer then.

The move itself should represent good news for consumers, although in theory some operators may feel encouraged to claw back any lost revenue by simply increasing subscription costs or call charges in other areas.