Dialling a number starting 0870 should ring alarm bells as well as the phone. While named NationalCall rate numbers, they're more akin to premium rates, costing up to 6p/min, massively more than a normal call. This is my two-step cost cutting plan.
And it's needed. These numbers are everywhere; household names like Comet, Vodafone and Barclaycard all issue them. Worse still, it often means, call to complain and the company you're calling will profit from the call.
Keep to date with developments
Currently there are lots of changes happening in the 0870 world. Ofcom has already announced substantial proposals (more later). I aim to keep you updated on developments by including them as and when they happen in my weekly Money Tips e-mail (don't worry it's free and ad-free).
The cost of calling
Don't be fooled into thinking you're paying reasonable rates to call these numbers as prices are massively over inflated.0870 National Call numbers
These have their own special pricing arrangements and for most read expensive:
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Up to 10 times a normal call cost. On BT's basic package, calling a landline during the day costs 4p/min (local and national rates no longer exist), yet calling 0870 numbers is 6p/min. On TalkTalk a normal 30 minute evening call costs 4.25p/call, but it's 45p to an 0870 number.
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Not included in ‘free calls' packages. If you're on an ‘inclusive calls' package, either on your home phone or mobile, almost invariably you'll still need to pay to make 0870 calls.
0845 Lo-Call Numbers
Don't confuse Lo-Call with local; numbers starting 0845 aren't cheap and, again, aren't included in the ‘free calls'. For someone calling from a TalkTalk line in the evening, you'd pay 15p for a half hour 0845 call compared to 4.25p for a normal call.
Sadly many small businesses actually pay to have these numbers, misled by old promises that they “look more professional and attract custom”, without realising that these days their customers have to pay more.
Other 'non-geographic' numbers
Non-geographic numbers are where the call cost doesn't relate to where you're calling. With numbers starting 0844 the price is fixed, at between 1p and 5p/minute; with 0871s it's up to 10p/minute. They're often used for special services where providers deliberately get a cut of the call revenue (see the International Callchecker for how they're used to get cheaper international calls).
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Sample Cost of Calling 0870s and 0845s (per/min unless stated as at May ‘08) |
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| Daytime | Evening | Daytime Weekend | |||||||
| Normal Call | 0845s | 0870s | Normal Call | 0845s | 0870s | Normal Call | 0845s | 0870s | |
| BT Option 1 | 4p | 2p | 6p | 1.5p | 0.5p | 1.5p | Included | 2p | 6p |
| Virgin Media | 3.25p | 6p | 10p | 3.25p | 6p | 8p | Included | 6p | 10p |
| 18185 | 5p/call | 3p | 6p | 5p/call | 0.5p | 4p | 5p/call | 0.5p | 2p |
| TalkTalk Option 1 | 3p | 2p | 6p | 4.25p/call | 0.5p | 1.5p | Included | 2p | 6p |
Why companies use these numbers
The answer is simple. 0870 numbers are often revenue makers, so it's unsurprising many high street names including Sky, Argos and even Carphone Warehouse issue them.
A five second ‘0870 numbers' Google search reveals all; telecom providers offer, “0870 numbers earn you 1.5p per minute” A simple calculation based on this is all too revealing; a big company with 3,000 daily daytime callers, each holding for 10 minutes would generate over £150,000 a year.
The "we aren't paid when you call" excuse
Some companies deny they profit, with cleverly worded, “we're not paid when people call our 0870 numbers.” This usually means that in return for using an 0870 number, they're supplied with sophisticated high tech call handling and routing technology, and the 0870 provider gets the revenue. So the real question is, ‘how much would that service have cost otherwise?” that's their real profit.
0870 can be worse than premium rates
While premium rates are more expensive, at least they're transparent as they're required to inform you of the tariff. More importantly, premium rates' much tighter regulation means they can't leave you on hold, raking up the charges. Yet the 0870 regulations are flaccid, so they can and do keep us on hold, boosting their profits.
COST CUTTING STEP 1: Dial the wrong number!
Often companies have other numbers than 0870s that will enable you to reach the same route. The website SayNoTo0870.com has a searchable ‘alternative number' database to help you work around the charges. These numbers come in two main types.
Alternative departments. Most big companies have a range of numbers. 0870s are commonly for complaints and enquiries, while sales lines are cheaper or even free (ie putting complaints off and encouraging sales). So dial the sales number and ask to be put through to the relevant department.
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The ‘calling from overseas' number. Many companies list standard numbers as an alternative that may be dialled when you're overseas. Use these numbers from the UK simply by replacing the 44 prefix with a 0 (eg 4420 7123 4567 becomes 020 7123 4567).
The problem with the SayNoTo0870 site
SayNoTo0870 uses adverts straight from Google to help fund it. Sadly Google automatically places ads to match the site content; paradoxically meaning that 0870 providers are often advertised on the site. Luckily the ads rotate so many people won't see this, but if you do – you now know why.
COST CUTTING STEP 2: Cut the cost of 0870s
If there's no alternative number, the next step is to cut the cost of calling 0870s. The first rule is try not to call from your mobile, as that can seriously cost.
Yet even from home phones it can cost large. Both BT and TalkTalk charge 6p/minute to call 0870 numbers daytimes, whereas currently Telesavers is only 5p/min.
Better still, these companies are ‘override providers'; special phone companies you can access without changing your home phone provider, thus ‘overriding' the network. All you need do is dial a prefix or access number, and then call the 0870 number.
The UKCallchecker provides a list of the cheapest providers for calling 0870 and 0845 numbers and is updated every day.
The future of 0870s
Having been writing and ranting about this issue for years, I'm pleased to see that the regulator Ofcom has finally set out proposals to strengthen consumer protection. Initially this was a consultation paper then in May these were changed to recommendations which should be in place by Autumn 08.
The Proposals
National rate to mean national rate. Mainstream home phone providers won't be able to charge more for dialling 0870 numbers than they charge for a normal national call. Other providers, wanting to charge more, need to make a free announcement at the start of the call. This also means that 0870 numbers should be included in ‘free calls' packages.
Revenue sharing for 0870s to end. The changes to pricing should mean an end to revenue sharing, so companies won't be able to profit from using such numbers and will be fined if they don’t follow strict rules about how their call prices are publicised.
0871 numbers redefined as premium rates. 0871 will be redefined as premium rate numbers and come under the regulations of PhonePayPlus (which used to be called ICSTIS), the premium rate regulator. This means these numbers and the revenue sharing will be much more tightly controlled.
All this is great news, but the proposals have been in place for a while, and were expected to come into effect in Feb 08, sadly this has now been moved to Autumn 08.
My main worry about the proposal is many companies will just shift from 0870 numbers to 0871 numbers, which will still be able to generate revenue. Some, such as Tiscali, already use these numbers. Ofcom are due to say more about this in the summer, and all details will be in the weekly email.
Stay up to date with 0870, all changes will be in the weekly email
