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Summary

The purpose of this document

1.1 This document implements a number of Ofcom’s decisions on how telephone numbers will be managed in the future. Having set out our general strategic framework in July 2006 , this document confirms some specific steps that we are taking now, and makes one further proposal.

1.2 Ofcom is responsible for managing telephone numbers effectively. This includes making sure that enough numbers continue to be available to consumers, so that they can benefit from the services which numbers support. We must also ensure continued trust in the meaning provided by numbers, so that consumers can use them with confidence.

1.3 The decisions in this document address those two objectives, by taking action to:

• Raise consumer confidence, which is threatened by confusion about the prices and services associated with certain numbers, including services beginning with 08 numbers. Consumer confidence is also threatened by the misuse by some communications providers (‘CPs’) of certain types of numbers, such as ‘personal numbers’ beginning ‘070’, which tends to bring all services offered on such numbers into disrepute; and
• Avoid potential shortages for some non-geographic numbers, such as certain 08 numbers, where the usual response - opening new number ranges - could add to consumer confusion. We are also taking steps to ensure continued availability of geographic numbers, supporting the entry of new market competitors.

1.4 Ofcom does not intend to change the geographic telephone numbers traditionally used by most households and businesses. We do not think that this is needed, mainly because of changes we are making to how we manage the allocation and use of telephone numbers.

1.5 We have, however, decided to provide a new range of numbers - beginning with ‘03’ – which we think many customers will trust more than many current 08 numbers. Consumers will pay the same amount for calls to 03 numbers as they would for calling a geographic number (beginning with ‘01’ or ‘02’). We think that many businesses, public services and voluntary services will want to enable their customers to call them on 03 numbers rather than 08 numbers.

1.6 We are also making changes to increase consumer protection from abuses on some existing 070 personal numbering services. For these numbers - which are often confused with mobile numbers - we are making it a requirement that customers get a free announcement about the cost of a call before the call begins, in any case where a call will cost more than 20p (per minute or per call).

1.7 In addition, we are finalising some detailed measures to avoid number changes, by changing how we allocate geographic numbers (numbers starting with 01 or 02) so they can be used more efficiently by the growing number of CPs that want these numbers.

1.8 These steps are part of a long-term plan for telephone numbering which we set out in our July 2006 document (‘the July document’). That plan was based on a set of strategic principles for numbering policy decisions, and it drew on a significant base of evidence and consultation responses. The resulting set of measures, some of which this document covers, are designed to deliver a plan for UK telephone numbers which reflects consumers’ concerns about the continuity of their own number, their desire to dial other numbers with confidence, and the need to make enough numbers available for current and future services.

Policy decisions

We are allocating new 03 numbers to increase certainty, trust and confidence in the numbers that consumers use to call public services, voluntary organisations and companies who want a national presence

1.9 The original purpose of those non-geographic numbers starting with 08 (and ‘09’) was as a single point of contact for those businesses and public services which have a national presence and identity. These numbers also allow businesses and public sector bodies that make services available to the public to make charges using a micro-payment mechanism known as ‘revenue-share’, whereby they take a share of the charges paid by the caller; this capability is widely used.

1.10 However, consumers have a poor level of confidence in many 08 numbers. Many people significantly over-estimate charges for these numbers, so are deterred from calling them. Many are not aware of the nature of revenue-share, and a number of ‘scams’ have emerged which exploit that system. Negative views on 08 numbers are exacerbated by their use for some services (both public and private) that customers view as essential. Many calls to chargeable 08 numbers also relate to services to which they are ‘locked in’.

1.11 As a result of these factors there has been a substantial erosion of consumer trust in 08 numbers. Ofcom has already taken some steps to restore this trust in its Number Translation Services Review (‘the NTS Review’) .

1.12 As well as consumer confidence issues, most of the 08 ranges that are currently in use are projected to run out in the next few years, due to strong growth in underlying demand. There are enough spare 08 numbers for these services, but we want to take this opportunity to make more numbers available in a way that benefits consumers.

1.13 We therefore are creating a new type of number – starting with 03 – for those organisations who require a national presence, but who do not wish to make an additional charge to consumers for contacting them. We expect the new range to become trusted by consumers as covering clearly-understood services and price ranges. The new range will meet the need for consumer certainty and confidence in making calls, mainly due to the charging features of 03 numbers:

• consumers will have a clear understanding of the price that they are paying for a call, mainly as call tariffs and call discounts will be required to be the same as if the consumer was calling a geographic (01 or 02) number. This will apply to all call minutes, including ones that are part of the customer’s inclusive minutes; and
• the use of revenue-sharing will be forbidden on this new range. Consumers calling these numbers should be confident that they will be paying only for the call, and not for any additional services provided by the organisation being called.

1.14 Ofcom intends that these requirements will apply to calls from all CPs on all lines – whether a BT line, any other fixed line, a mobile or a payphone. We are conducting a short further consultation (see paragraph 1.30 to 1.31) with a view to implementing this requirement. Subject to the outcome of this consultation, we expect the requirement to be in place before customers are able to call 03 numbers.

1.15 The 03 range will thereby address the key customer concerns about many 08 numbers, will align with consumer expectations, and so should increase their willingness to make calls.

1.16 In addition, 03 numbers will retain service provider (‘SP’) benefits that are available on 08 numbers, such as managing call volumes in a flexible way and collecting useful call data. We expect 03 numbers to be attractive to a variety of SPs, including public services. The Varney Review on the delivery of public services, published as part of the Chancellor’s pre-budget report in December 2006, indicated the likely widespread adoption of 03 numbers by public bodies.

1.17 To promote early adoption of 03 numbers, we are making 03 numbers available so that all SPs will have a good choice of different 03 numbers:

• memorable numbers, such as ones starting with ‘0300’ and ‘0333’;
• a specific part of the 03 range - all numbers beginning with ‘030’ - for use only by public bodies and not-for-profit services; and
• numbers that are reserved for SPs on existing 08 numbers, so that they can move across to 03 numbers by changing only the ‘8’ digit in their number to a ‘3’.

1.18 Ofcom will be allocating the first of these numbers to CPs during March 2007. The first 03 applications can be accepted in three weeks’ time, from 6 March 2007. Some of these new number blocks are likely to be very popular because memorable numbers are involved. Ofcom will therefore be allocating the first of those memorable numbers through a competitive process, before moving to the standard first come, first served system. Ofcom has today published full details of that allocation process .

1.19 Ofcom recommends that SPs who are interested in acquiring a 03 number but have not yet been in contact with CPs should do so without delay. SPs should also approach CPs about the commercial issues involved in delivering services on 03 numbers.

1.20 Creating 03 does not mean that 08 numbers will disappear. Services requiring small micro-payments will stay on the 08 range, with new number allocations as required by demand. But creating the new 03 range does avoid the need for more types of 08 numbers, so we can simplify the meaning of 08 numbers in future to allow consumers to better understand the price and service relating to each call. Figure 1.1 shows our long-term plan, with only three broad categories of 08 numbers, each with ample capacity to retain their meanings.

Figure 1.1 The future structure of the 03 and 08 ranges

Number range	Tariff/Service
03	Calls at the same rate as calls to geographic numbers, no revenue-sharing permitted
080	Freephone
084	Calls up to 5ppm, revenue-sharing permitted
087	Calls up to 10ppm, revenue-sharing permitted

1.21 Some 08 numbers are used to provide services for which the historic link of call charges to geographic rates - 0845 for ‘local rate’ and 0870 for ‘national rate’ – has broken down. The NTS Review decided to repair and extend the link between 0870 calls and national calls to geographic numbers, for calls from all originating communications providers (‘OCPs’). That Review also said that we will consider in future doing the same for 0845 numbers. This remains Ofcom’s position. However, Ofcom expects that in the longer term the growth in non-revenue-sharing services can be provided on the new 03 range. SPs currently using 0845 and 0870 numbers to provide services may of course decide to migrate to 03 in due course.

1.22 We are leaving current 0800 Freephone service numbers (and 0808 free numbers) unchanged. This is the one type of 08 number that is reasonably well-recognised and trusted by consumers. The same number generally is used for Freephone services internationally, which may contribute to high consumer awareness. And there is no current danger of these numbers being exhausted.

We are increasing consumer protection for 070 personal numbers

1.23 Personal Numbering Services are provided on one specific part of the 07 range (070). Ofcom has several concerns about these services. There is very limited consumer awareness of ‘Personal Numbers’ as a concept, and legitimate personal numbering services have had relatively little market impact. At the same time there have been a number of cases where providers have run ‘scams’ by exploiting the poor awareness of this range and the prices charged. This is despite previous attempts to restore trust in personal numbers .

1.24 Ofcom is therefore now introducing a requirement that will provide a degree of protection to consumers calling personal numbers. If a call to a 070 number costs more than 20p (per minute or per call), customers will receive a free-to-caller pre-call announcement about the charge involved. Ofcom is conducting a short further consultation (see paragraph 1.30 to 1.31) with a view to making this apply to calls from all CPs on all lines – whether from a BT line, any other fixed line, a mobile or a payphone. Subject to the outcome of this consultation, and given the time needed to implement this requirement, we expect this obligation to be met by all CPs from Autumn 2007. Whilst the exact wording of the pre-announcement may differ between CPs, we would expect all customers to be better protected by this measure.

1.25 We have already decided to end the scope for confusion with mobile numbers in the longer term, by ending the use of 070 for personal numbers. The ‘06’ ranges of numbers has instead been earmarked to meet future demand for such numbers. A pre-call announcement system would also be expected to apply to 06 numbers.

We are taking steps now to avoid future changes to consumers’ geographic numbers

1.26 Geographic numbers are widely recognised and trusted by consumers, most of whom still highly value the ability to keep their geographic numbers. But geographic numbers continue to be in high demand due to a growing number of CPs.

1.27 We are implementing measures now so we can avoid number changes whilst continuing to make numbers available to support competition. We will do this mainly by allocating geographic numbers to CPs in smaller-sized blocks (1,000 rather than 10,000 numbers) in any geographic areas where the current numbers would otherwise run out within five years. This is a lot tighter than such ‘conservation measures’ have been in the past. The July document explained that tighter conservation measures would substantially reduce the risk of number changes in the short to medium term, before anticipated technological changes should make it easier to allocate telephone numbers in whatever block size is most efficient from a numbering management perspective .

1.28 The July document also set out our contingency plans - which were well supported by stakeholders - to make further numbers available as necessary in specific areas. This might be needed for unforeseen reasons such as substantial localised new housing development. Our approach in such situations, which should be very limited, would be to minimise consumer disruption through the use of ‘overlay codes’. These are second area codes to cover a geographic area that has run out of numbers. No-one would actually have to change their current code or phone number as a result of an overlay code being implemented in their area.

Next steps

1.29 Ofcom’s decisions in this document involve changes to the National Telephone Numbering Plan (‘the Plan’), as well as the creation of an application form for 03 numbers. These decisions are explained in detail in Annexes 2 to 4.

Consultation on General Condition 17

1.30 In addition, in this document Ofcom is consulting on an amendment to General Condition 17 (‘GC 17’), so that its decisions on 03 numbers and 070 numbers are enforceable on all relevant CPs. This is intended to ensure that customers of all CPs will benefit from the decisions that Ofcom has taken to protect and provide confidence to consumers when they dial these numbers.

1.31 The consultation on amending GC17 will run until 5pm on 14 March 2007. The shorter-than-normal consultation period allows for the obligation to be introduced (subject to the outcome of the consultation) before 03 numbers can be dialled by consumers.

Other measures

1.32 As described, the measures in this document are part of a long-term plan for telephone numbers. Several other strands of work are to follow in implementing that plan. These include a consumer protection test for number allocation, to enable us to deny allocations of numbers to providers that persistently and/or seriously abuse consumers. We will also review the detailed service and tariff descriptions for each type of number (including 08 and 09 numbers). Ofcom expects to consult later in 2007 on detailed proposals for these issues. Ofcom will also continue to monitor the availability of geographic numbers and take appropriate steps to minimise disruption to consumers and businesses.

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