subject: How The Market Has Been Harmed By 25 Years Of Charges By Mobile Operators On Freephone Numbers [print this page] While consumers have enjoyed the benefits of making free calls to Freephone Numbers such as 0800 numbers, mobile network operators have continued to charge users at their own fixed rates. For consumers, this has been a cause for confusion, who for the most part are hesitant to call non geographic numbers due to lack of knowledge of calling costs. Even though the 080 number range is the most recognised and understood, charges for calls from a mobile phone seem to be a major deterrent to prospective callers. One of Ofcom's major proposals in their latest consultation is to increase consumer awareness and bring about a fair and transparent pricing structure. In the 2010 Consumer Survey conducted by Ofcom, 46% of respondents were aware that calls from a fixed line 0845 numbers were free. This figure is a major drop from the earlier survey conducted in 2009 where 62% of respondents were aware that calls to 0800 numbers was free.
Confusion in pricing has also led to the overestimation of the price of calls made to Freephone Numbers from mobile phones. In addition, high mobile calling charges have also been responsible for the drop in calls from landlines due to poor consumer awareness on calling charges. In turn, this also reduces service availability and innovation while low income households who depend on mobiles for communications are potentially denied access to socially important services. Service providers also have no control over calling charges from mobile phones which also included 0500 and 116 number ranges. Several mobile operators have chosen relatively high retail prices that severely affected utility companies that were potentially in breach of their licenses since calls made to their freephone numbers were chargeable from mobiles.
Another factor leading to high mobile calling charges is the lack of motivation and communication between the mobile network operators and service providers on the impact on call pricing. With the increasing use of mobiles over fixed lines, the potential for a further drop in call volumes is high unless measures are taken to remedy the problem. This is the main reasons for Ofcom's recommendations in their latest consultation. These high calling costs have also led to a reduction in demand from service providers who fear losing customers and look for other ways to maintain and grow their customer base. By proposing to make calls from mobile phones to freephone numbers free from 2013, Ofcom has taken a major step in the right direction, which can lead to an increase in the number of subscribers to non geographic numbers including 0800 Numbers, 0871 Numbers, 0844 Numbers, and 0845 Numbers.
