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What Is The Size Of The Non Geographic Number Market In The Uk?

Non geographic numbers have become increasingly popular with businesses and other

organisations in the public and private sectors in the UK over the years. According to Ofcom, consumers paid 1.9bn to make calls to non geographic numbers in 2009. Of this, 900m went to providers of retail services including virtual network operators, 5m to transit networks, and 500m each to terminating networks and service providers. The total paid by consumers takes account of the variation in retail prices. Around 50% of the call revenue is retained by the originating communications provider and the retailer. Fixed operators generated around 135 billion minutes in 2009 out of which 27.6 billion were to non geographic number ranges, which is around 20% of the total call volume. It accounted for 23% of fixed operators call revenues. In the case of 080 numbers, 10.7 billion call minutes originated from fixed networks in 2009.

Studies indicate that there has been a drop in non geographic call volumes, which declined at a faster rate between April 2007 and July 2010. This is attributed mainly due to the negative perception of non geographic calls by consumers. According to a survey, 39% of fixed line and 33% of mobile-only users indicated that they feel forced to and would rather not call make non geographic calls. Ofcom in their latest consultation have proposed several steps that can be taken to rectify these issues and help consumers regain confidence in non geographic numbers. One of the major proposals is the provision of more effective price information so that consumers are aware of pricing. The regulatory body also recommends the setting of maximum limits in retail prices for each number range, which includes 0871 Numbers, 0845 Numbers, 0800 Numbers, and 0844 Numbers, amongst others.

Ofcom also proposes to change the pricing structure for non geographic numbers with an unbundled traffic structure. This includes an Access Charge for services provided by the originating communications provider and Service Charge for services by the service provider. Since the unbundled tariff is a new approach Ofcom proposes to run extensive campaigns along with the concerned parties in order to increase consumer awareness about the new pricing model. Details will also be provided in the bill presented to each consumer with a breakdown of the access charge and service charge. In addition, service providers are required to state the service charge applicable in their advertising and promotional material.

9.229 We note that O2 has questioned whether SPs will in fact be incentivised to advertise their SCs given that in the December 2010 Consultation we did not suggest that any pricing obligations would apply across all number ranges for which we had proposed an unbundled tariff. As set out in more detail in Section 12, we are proposing to require SPs on all unbundled number ranges to state the SC for their non-geographic number in their advertising and promotional material. Thus, we believe that the unbundled tariff proposal will materially improve price awareness and (as supported by the 2011 Experimental Research) allow consumers to make better NGC decisions.

by: Kieron James
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