Why Has Ofcom Undertaken A Major Consultation Into The Non Geographic Call Services Market?

Among the main reasons for Ofcom's consultation into the non geographic call services

market is to bring about transparency in pricing and create greater consumer awareness. The major areas addressed are efficient pricing, its impact on service quality and innovation, revenue sharing, and the implementation of an unbundled tariff that includes an Access Charge and Service Charge that service providers are required to make consumers aware of. Ofcom is of the opinion that greater transparency can lead to a potential increase in call volumes and better consumer confidence as well.

In the current circumstances, consumers have poor knowledge of pricing and are therefore hesitant to call non geographic numbers for fear of being charged exorbitant rates. Further regulations will help to avoid unfair prices and promote price transparency. One of the major objectives of the consultation is the proposal for implementation of the unbundled tariff that would bring about greater transparency in pricing and make consumers aware of how their money is shared between the originating communications provider, terminating provider, and service provider.

Freephone numbers are yet not free to call from most mobile services, which leads to more confusion amongst consumers. Therefore, Ofcom also proposes to make calls from mobile phones to non geographic numbers such as 0800 Numbers, 0844 Numbers, 0871 Numbers, and 0845 Numbers, and others, free as early as 2013. In addition, the consultation also addresses concerns about revenue sharing. The lack of transparency and high calling rates by some phone companies have been a major deterrent for consumers who refrain from making calls to these numbers, leading to a loss in call volume. This also denies them easy access to socially important services. Low-income households primarily use mobile phones and are therefore forced to call at higher rates even when they need to call essential services such as councils, benefit offices, medical services, and utility services. The consultation also intends to address this issue by making calls from mobile phones free as well.

The main proposals in the consultation are to simplify non geographic number ranges, make calls to Freephone Numbers free from landlines and mobile phones. Call rates to 03 Numbers are proposed to be made the same as that to a landline in the 01/02 number ranges. In addition, the revenue sharing is to have a common simplified structure. This will ensure that the consumers and service providers are not burdened with unnecessary costs.

by: Kieron James

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