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Layout image Freephone Workshop 1st Meeting - 11 August 1999 Layout image Layout image
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Agenda
1.  Introductions / House keeping
2.  Background to meeting
3.  Update on developing number administration
4.  NICC report recommendation discussion

  • Pre-allocation porting.
  • Further digit analysis for routing.

5.  Commercial considerations

  • The NICC implications of 0500 numbers.
  • Incentives to release unused 6 digit 0800 numbers.
  • Protection of 7-digit numbers which are similar to 6-digit numbers.
  • The scope and demand for issuing new 6-digit or shorter numbers.
  • Reservation of 0800 numbers for marketing purposes.
  • Over-dialling (presentation of numbers).

6.  Next Steps
7.  AOB

Oftel Panel Members
Peter Walker         -      Oftel Technical Director – Chairman of the meeting
Ray Thornton         -      Oftel Numbering Unit Manager
Warwick Izzard      -     Oftel Regulatory Policy Adviser
Alan Pridmore        -     Oftel Regulatory Policy
Maura Crawford    -     Oftel Numbering Unit Administrator – Secretary to the meeting.


Minutes of Meeting

Agenda item 1 - Introductions/housekeeping
1.1 Peter Walker, Director of Technology at Oftel, welcomed the large number of attendees representing operators, users and consumer groups to the meeting. It was explained that the purpose of the meeting was to encourage discussion of commercial issues relating to the use of freephone numbers, and the Network Interoperability Consultative Committee (NICC) recommendations on the future of freephone numbering. The meeting agreed the agenda, which is attached at Annex A.

Agenda item 2 - Background to meeting
2.1 Peter Walker briefed the group on the background to the meeting. A document Freephone Numbering – Background document, August 1999, was distributed to attendees and is attached to the minutes at Annex B.

Agenda item 3 - Update on Individual Number Allocation (INA)
3.1 Alan Pridmore gave a presentation on the background, current position and future plans for Individual Number Allocation. Copies of the slides are attached at Annex C. A question and answer (Q&A) session followed the presentation.

3.2 During the Q&A session it was established that:

  • All numbers were likely to be charged a nominal annual rental fee in order to ensure that numbers were returned when they were no longer required. There would also probably be a one-off allocation fee for numbers [the consultation pointed to European examples of £10-20 per number]. Under the new arrangements numbers in blocks allocated to operators but not allocated to customers would be returned to the pool of available numbers.
  • The commercial reaction to charging for numbers was difficult to gauge. The cost incurred by operators for numbers was currently passed onto the customer either directly or indirectly. Number charges may simply make the costs transparent. Alternatively, depending on the allocation mechanism, competition between operators might bid away the price of numbers.
  • Legislative and technical changes were required before the proposed developments to number administration could be launched. Until more processes were in place, Oftel could not give a more precise timetable than "by the year 2002" given in the May Statement.
  • Numbers from the UK Numbering Scheme were a national resource and remained the property of the country, although Oftel was looking to clarify the "rights of use" of numbers.
  • A round table discussion meeting was planned for 8 September 1999 to discuss rules governing the use of numbers. Notice of the meeting and related papers were to be posted on the Internet.
  • It was expected that numbers would normally be allocated on a "first come first served" basis. Charging would reflect the attractiveness of the number.
  • Oftel believed that INA was appropriated for ranges where customers place particular importance on the choice of number and where the market was mature. For this reason initially the 08 and 09 ranges were selected for INA with 070 (personal numbering) being an option for the medium term.

Agenda item 4 - NICC Report recommendation discussion
4.1 Chris Seymour, representing the NICC established Freephone Task Group, presented the NICC report and recommendations. A copy of the report would be posted on the NICC web-site: http://www.oftel.gov.uk/NICC/public.html The Group studied several options that allowed the use of 6-digit freephone numbers to continue whilst making additional 0800 capacity available for allocation. The Freephone Task Group recommended two options that could be implemented quickly.

4.2 Option 2b of the NICC report recommended Pre-allocation Porting of 7-digit 0800 numbers to release approximately 250,000 numbers, doubling the current capacity. It was possible to implement the option within 6 weeks.

4.3 The NICC report also recommended the use of finer digit analysis to determine whether a freephone number was 6- or 7-digits in length, thus allowing mixed number lengths in a block of 10,000 numbers. It was estimated that potentially 3.75 million new numbers could be created if unused 6-digit 0800 numbers were returned to Oftel and allocated in the 7-digit form. If introduced on a gradual basis operators considered that further digit analysis for routing was technically possible at reasonable cost.

4.4 Oftel noted that there was wide industry support for the NICC recommendations. The meeting was reminded that a decision could not be taken before completion of the Cost and Benefit Analysis study on number change. The study, conducted by Ovum, was due for completion in October 1999.

Agenda item 5 - Commercial considerations
5.1 Oftel invited discussion on the implications of accommodating the 0500 range in the NICC recommendations. C&W confirmed that it was in favour of 0500 customers migrating to 0800 rather than other 080 sub-ranges. It was viewed by some as unfair to expect 0500 customers to participate in the re-branding of another 080 range, e.g. 0808. C&W confirmed support for a Pre-allocation Porting based solution, but stressed that the introduction of finer digit analysis should be implemented with caution and should only be used initially to create migration paths for 0500 numbers.

5.2 Through questions and answers from the floor, it was apparent that:

  • Any 0500 numbers migrated to the 0800 range would become 7-digit 0800 numbers.
  • Oftel was investigating ways that would allow retention of coveted 0500 numbers. However, the demand to retain 0500 numbers had not yet been established.

5.3 Oftel indicated that the implications of allowing retention of coveted 6-digit freephone numbers, possibly at an additional cost, and also the possibility of allocating new 6-digit numbers at a premium, needed to be considered. The DMA stated that it supported the retention of existing 6-digit numbers but did not wish to see the allocation of new capacity in the 6-digit form as this was wasteful of capacity. The Freephone Task Group emphasised that the Pre-allocation Porting solution would not support the issue of new 6-digit numbers as it applied to conformant numbers only.

5.4 The Freephone User Group pointed out that the current low utilisation of freephone number blocks could indicate a low demand for freephone numbers and that the level of capacity created by the NICC options would be sufficient for future needs. Oftel emphasised that it wished to avoid the inherent pitfalls of forecasting and create more than sufficient capacity. It was mentioned that the market was growing, with around 90 operators with freephone allocations direct from Oftel, which indicated a need for a long-term forecast of demand. The DMA believed 3 million numbers was more than sufficient to meet users needs in advance of technical solutions, such as individual number allocation.

5.5 Oftel sought views on incentives to release unused 6-digit 0800 numbers. The meeting was asked to consider whether migration should be forced on non-coveted 6-digit 0800 numbers in use or whether a financial incentive should be used to encourage users to migrate rather than retain the numbers. BT confirmed that the current rate of churn was slow. It was suggested that once legislation allowed charging for numbers, a higher fee could be attached to 6-digit numbers.

5.6 Oftel invited the meeting to consider the issue of 7-digit freephone numbers similar to existing 6-digit numbers. Comments indicated problems had been experienced with similar 0800 and 08000 numbers, but that problems were often cases of similar digit strings being mis-dialled and calls lost, rather than attempts to ‘pass off’ as another business. Oftel recognised the risk of issuing similar digit strings and had considered the establishment of a register of users who wanted to safeguard their numbers from this situation, probably for a fee.

5.7 The meeting discussed the possibility of continued use of mixed number lengths for 0800 numbers. It was not thought that any other country operated with 6- and 7-digit freephone numbers, although it was noted that The Netherlands offered 4- and 7-digit numbers. There was interest in opening a range for short digit numbers, but reservations were expressed over introducing short digit numbers in the 0800 range due to lack of capacity. The operators pointed out that routing and transiting of mixed number lengths was more difficult and thus more expensive, and this cost was likely to be passed onto the customer. Oftel suggested that there were benefits gained from a standard number length; benefits that have been supported in the public’s responses to previous consultations and cognitive studies. It was noted that behavioural research into the benefits of a standard number length were old and fragmented and it was suggested that new market research into public views and behaviour patterns could be commissioned by Oftel and funded by the industry. BT stated that it was difficult to gain an insight into the causes of mis-dials on 0800 numbers.

5.8 Oftel invited the meeting to consider whether the 0800 range should be reserved for specific types of marketing or ‘publicly aware’ numbers. The DMA commented that the public perceived calls to 0800 numbers to be answered in a planned and controlled manner, although other comments suggested the public did not always view businesses using 0800 numbers as offering a professional service and that the range had been polluted from past mis-use. It was suggested that an alternative 080 sub-range be branded for personal freephone use, although it was pointed out that Oftel currently allocates blocks from the 0808 range for personal freephone in order to conserve capacity in the 0800 range, and that sub-ranges would run out if one was designated for each new service. The meeting generally agreed that unless there was a successful campaign to brand the whole of the 080 range as freephone (difficult whilst 0802 was a mobile code and some mobile networks charged for freephone calls) businesses felt disadvantaged using a freephone code other that 0800. However, the funding of such a campaign remained a problem.

5.9 Concern was expressed that branding of the 0800 range as a marketing range would be diluted, and capacity exhausted, if 0800 numbers were not confined to specific marketing purposes. Oftel was sympathetic, but emphasised that it was extremely difficult for Oftel to regulate the offering of specific services on number ranges and any enforcement action would be heavy-handed and not proportional to the problem. Industry self-regulation was suggested, with the possibility of the DMA and Oftel working with the industry to produce a Code of Practice.

5.10 Oftel introduced the issue of over-dialling – the addition of digits to the telephone number for presentation purposes. Concern was expressed by the Freephone User Group that certain mobile networks failed calls if too many digits were dialled, thus failing calls using extra digits for presentation. Oftel felt that mobile networks could make changes to the maximum number of diallable digits and encouraged the matter to be raised with NICC. Oftel informed the meeting that it did not instruct operators on the operation of their network.

Agenda item 6 - Next steps
6.1 Oftel announced that the minutes of the meeting would be published on the Oftel web-site. A second Freephone Commercial Group meeting would be arranged to discuss the draft Cost Benefit Analysis study, due in late September/early October. The Freephone Commercial Group findings, the NICC recommendations and the Cost Benefit Analysis would be presented at a Freephone Workshop later in the year. An invitation to attend the workshop would be posted on the web-site.

Agenda item 7 - Any other business
7.1 A final Q&A session established that:

  • The NAO would allocate numbers in a shorter timescale than the current 28 days, but details had not yet been determined. The USA allocated numbers in real time.
  • A minimum usage level had not been established but the rental fee should reduce hoarding of numbers.
  • The recent pattern of allocation of 0800 number blocks by Oftel had been to new entrants. Oftel informed the meeting that it predicted the 0800 capacity to last until around March 2000.

7.2 Concern was expressed that PRS services were being offered on London geographic ranges. Oftel reassured the meeting that this was not the case, and that payment for the services was not via the telephone bill but by a post-call billing system that was being investigated by Trading Standards.

7.3 Peter Walker thanked the group for an interesting and productive meeting.

(If you have any queries or comments to make on the minutes above, please send them to Maura Crawford or fax them on 0171 634 8784).


Background Document

Freephone Capacity
There are currently freephone numbers in the following ranges – 0500, 0800 and 0808. In the National Numbering Scheme established in 1997, 080 was designated as the Freephone range of the future.

Numbers are allocated by Oftel in blocks to licensed operators. Each individual block can only be allocated to one operator.

Cable and Wireless currently hold all the 0500 blocks of numbers. These numbers have been provided to users in 6-digit form. No new 0500 numbers are being provided.

There are 1000 blocks of 0800 numbers. 840 of these blocks are allocated to BT in 6-digit form; 140 are allocated to all operators in 7-digit form, which leaves 20, 7-digit blocks currently unallocated. The 840 BT blocks are currently frozen with no further numbers being made available to users. This is due to the competitive advantage that BT would possess if it were allowed to continue to provide the shorter 6-digit numbers to users.

There are 1000 blocks of 0808 numbers – all in 7-digit form. 100 blocks have been allocated to Vodafone for migration of their 0321 numbers. 50 other blocks have been allocated to all operators, leaving 850 unallocated.

July 1998 consultations
In July 1998 Oftel published two consultation documents. Freephone numbers: Options for the future and Developing Numbering Administration. The former document identified 7 options for dealing with the exhaustion of 0800 blocks of numbers. Oftel identified a preferred option that would have created 10 million 7-digit 0800 freephone numbers. This would have required a change to all 6-digit numbers. Responses to the consultation revealed a strong desire from those organisations with 0800 6-digit numbers to retain their existing number. The latter document opened the debate for considering charging for numbers and the allocation of individual numbers directly to users.

Post Consultation review
In the light of the responses to the freephone consultation, at the Trade and Industry Select Committee hearing into telephone numbering in January 1999, the Director General of Oftel committed to carry out a cost-benefit analysis into freephone numbering for use in developing the policy further. In March Oftel also commissioned the Network Interoperability Consultative Committee (‘NICC’) to consider the technical feasibility of retaining 6-digit 0800 numbers alongside the newer 7-digit numbers.

May 1999 Statement
This statement set out the proposed timetable of work for freephone numbering and also concluded that number charging and direct allocation should be introduced, with a target implementation date of 2002. Oftel is establishing working groups to consider such issues as charging methods and rules governing the use of numbers.

NICC Report
The NICC established the Freephone Task Group to consider these technical issues. This group included representation of users. It has now reported, highlighting several options that would allow the continuing use of 6-digit 0800 numbers and also increase the available capacity in 0800. It recommended two options that could be introduced relatively quickly. These are pre-allocation porting and further digit analysis of number blocks.

  • Pre-allocation porting (‘PAP’)

PAP is developed by the Telecommunications industry in response to customer demand for effective porting of non-geographic numbers.

The current method of issuing blocks of 10,00 non-geographic numbers to a range holder leads to limited utilisation of the block. Un-utilised numbers may be attractive to customers of operators and service providers other than the range holder.

PAP is being developed in two stages, both of which relate to the reservation of unallocated numbers prior to activation. The first stage will be a manual (fax-based) process which will enable network operators to interrogate range holders and to reserve for their own customers numbers which have not been allocated by the range holder. Phase 1 PAP will be delivered by November 99.

The second stage will augment Phase 1 by using a web-based solution which will hold details of all unallocated numbers downloaded from range holders databases, so that the available numbers can be scanned to select those appropriate for porting. It is unlikely that a fully functional system could be delivered prior to the second quarter 2000.

  • Further digit analysis

For historical reasons, BT have a large number of blocks of 0800 numbers in 6-digit form. There are some blocks in which BT has only a handful of customers. If operators could analyse an extra digit for routing some of these blocks could be returned to Oftel for re-allocation, in 7-digit form, providing potentially 3.75 million new numbers.

Cost-benefit analysis
Oftel has commissioned OVUM to carry out the cost-benefit analysis. OVUM will initially establish a framework of the economic implications of number shortages and then apply this framework to freephone numbers. The final report is due in mid-October.

Commercial Group
From discussion with users it became apparent to Oftel that there were specific commercial issues that required consideration in the use of freephone numbers. The purpose of today’s meeting will be to consider and discuss these issues as well as the implication of the NICC recommendations.

Policy Development
Oftel will use the results of CBA, the NICC study and the commercial group to consider the way forward for freephone numbering. A further short consultation is likely later in the year.


Developing Numbering Administration - Slides (presented at the meeting).

Click here to view slide presentation.


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