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defending a company (Read 10,343 times)
Pirate_King
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defending a company
Mar 14th, 2005 at 8:57pm
 
Hello

I work for a company that uses 0870 numbers. I am not here in any official capacity, nor am I in any real position in the company to be chosen to do so. However, I have to deal, on an increasing basis, with communications from customers regarding our use of 0870 numbers.

Up until the last few months, our use of these numbers for the past several years has never been a problem or an issue of contention. It is only the increased media presence of people such as yourselves that has led our loyal customers to question this decision.

When we decided to use these numbers, years before I joined the company, the primary reasons were flexibilty and practicality, as it allowed us to administer the calls more efficiently. In terms of cost to the customer, the only people affected at the time of the change were those in the local area, as everyone else in the country was paying what was then National Rate. It also meant that when we came to opening a second call centre in a different part of the country, there were no logistical difficulties or increased costs regarding two sets of numbers.

This system has worked extremely well for our company. We very rarely have calls waiting to be answered, at it is never known for anyone to wait more than a minute.  Indeed, we have won several awards for the efficiency of our call centre and customer service as a whole.

However, in these days of a changing telecoms industry and everyone on one payment plan or another, the rules have changed. As many people have pointed out on these forums (yes- I read them before posting), "National Rate" is no longer in existence, although our lines still charge that amount for calls- 7ppm daytime, 3.75ppm eveings and 1.5ppm weekends. We do make some profit off these calls, but at most this is 2ppm during daytime. Interestingly enough, our mail order offers are targetted to be more popular on weekends and we also heavily encourage alternative forms of contaxcting us, such as mail order, e-mail, and via our website.

We are re-thinking our position on the numbers we use, but you can't truly expect any company, big or small, to be able to overhaul their telephone system overnight. The logistics of doing so, not only with the phonelines themselves but also changing all company literature to advertise the new numbers as well as keeping the old lines active for a crossover period, is something that takes time and money; it is not something that an online/letter-writing campaign can change immediately.

Some of the companies may not have the budget to make such changes despite their intentions to do so, but are continually plagued to do so by those who simply wish to not be "ripped-off" by the companies who use 0870 numbers. What is often forgotten in this issue is that the telecoms industry changed around the  companies such as mine, who are being unfairly blamed for the "sudden costs" that were always present when calling 0870 numbers.

While I do appreciate the efforts made by the founders of and contributers to this site to try and bring about change to better the consumer, I do feel that too much pressure is being made on companies to do something that is not always practical.

I also feel that this site advertising the geographical numbers of various companies- including the one I work for- is potentially creating more problems than it creates, even so far as defeating your own purpose. People come here looking for a quick fix to the problem, instead of making their complaint known to the companies responsible; we are always willing to give our geographical numbers to those who ask for it (which you have incorrectly on here, by the way- you post the main reception for our head office, not the geog. numbers for our call centres), and it is the result of complaints that has led our decision to make the necessary changes.

Perhaps if all those who took our number from here let us know instead, those changes may already be in place.
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Dave
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Re: defending a company
Reply #1 - Mar 14th, 2005 at 9:22pm
 
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Some of the companies may not have the budget to make such changes despite their intentions to do so, but are continually plagued to do so by those who simply wish to not be "ripped-off" by the companies who use 0870 numbers. What is often forgotten in this issue is that the telecoms industry changed around the  companies such as mine, who are being unfairly blamed for the "sudden costs" that were always present when calling 0870 numbers.

The regulator has allowed this rip-off to carry on for the benefit of private telecoms companies. Both consumers, and companies such as yourselves using these numbers have been unaware of the unfolding scam. If companies don't want to remove non-geographical numbers completely, then I would urge them to print both geographical and non-geographical numbers as a short-term measure.

I would also like to suggest that your company responds to Ofcom consultations on this matter and that it makes its opinions known to the regulator. It may be worth pointing out that there are an increasing number of consumers who are expressing their dissatisfaction regarding the company's 084/087 number(s) and that they were put into place in good faith, ie that they wouldn't cost the caller any more that a normal call.

However, you acknowledge that your customers locally had to pay national rate. Why disadvantage those? At the time of local/national divide, this not only included customers within the same code area, but those in neighbouring ones. The only advantage this had was (and still is when you consider 0870 vs 0845) that the caller subsidises the NTS more with 0870.

The issue consumers have is that these numbers are, by definition, premium rate and should be moved to the 09 prefix to make this clear. Would your company be happy with this?
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juby
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Re: defending a company
Reply #2 - Mar 14th, 2005 at 10:21pm
 
There are a quite a few companies who are generally considered very well respected in their field that use 0870.

We should consider their point of view, and wonder why they haven't changed it yet.  It is usually down to somebody at board level who has his head in the clouds.

Near to where I live there is the Head Office of a very well known computer company which fits the above description. It has branches all over the UK.

It has gone over to an 0870 number which curiously coincided with the day I stopped doing business with them.

Why? Because this was in the days when it cost me a natonal call cost to dial 0870.  I objected to paying this because their previously quoted geographical number would cost me the price of a local call.

I suggest that they have had long enough to wake up?

Now, if I was in the USA it would cost me less than that to call them, ............................ And I wouldn't get that infuriating "Thank you for calling .......... now press one for the weather etc." ( Might just get "Have a nice day, Sir".) when I had concluded the business.)

Lets face it, if you are not a monopoly, DVLC, Tax Office etc., and you have the bare faced cheek to charge your potential customers for the call they are making to YOU the you deserve to go bust.

juby
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jrawle
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Re: defending a company
Reply #3 - Mar 15th, 2005 at 11:49am
 
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However, in these days of a changing telecoms industry and everyone on one payment plan or another, the rules have changed. As many people have pointed out on these forums (yes- I read them before posting), "National Rate" is no longer in existence, although our lines still charge that amount for calls- 7ppm daytime, 3.75ppm eveings and 1.5ppm weekends. We do make some profit off these calls, but at most this is 2ppm during daytime. Interestingly enough, our mail order offers are targetted to be more popular on weekends and we also heavily encourage alternative forms of contaxcting us, such as mail order, e-mail, and via our website.

We are re-thinking our position on the numbers we use, but you can't truly expect any company, big or small, to be able to overhaul their telephone system overnight. The logistics of doing so, not only with the phonelines themselves but also changing all company literature to advertise the new numbers as well as keeping the old lines active for a crossover period, is something that takes time and money; it is not something that an online/letter-writing campaign can change immediately.


My real aversion to 0870 numbers started last summer when BT forced me to go onto "Option 1". For this, I effectively have to pay an extra £3 a month. BT advertise this as being oh so good because I get up to an hour in the evening for 5.5p. Yet many of the calls I make are to businesses, whose NGNs are excluded from the inclusive package. So while I am continuing to pay the same "national rate" for 0870 numbers, I'm also paying extra line rental to BT for a service I can't use. (Have you ever noticed that the BT ads always show people chatting to their family or friends; they never show someone making an order from a company or booking tickets, or complaining to a utility company - things eveyone does in the real world).

While I have some sympathy for small-medium companies such as yours, calls to whom probably only last a couple of minutes so don't cost much extra in the evenings or weekends, some larger companies do tend to hold people in queues for a long time, which is very expensive.

I also agree that having to change your stationery would be costly. But how about listing a geographical number on your website as an alternative, while continuing to keep the 0870 number for the time being? You could also give the geographical number to anyone who requested it. Next time you need to order some new letterheads, they can include the new number. (If that's in a few years' time, then fine).

Seeing as the purpose of your use of NGNs isn't to generate profits, I presume you'd be perfectly happy if Ofcom were to remove the revenue stream, and allow 0870 numbers to be charged the same as geographical numbers.
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NonGeographicalMan
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Re: defending a company
Reply #4 - Mar 15th, 2005 at 12:06pm
 
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Up until the last few months, our use of these numbers for the past several years has never been a problem or an issue of contention. It is only the increased media presence of people such as yourselves that has led our loyal customers to question this decision.


It is not actually this site that has caused you the recent problem of people complaining about the 0870 ripoff.

The problem was caused for you by none other than BT when they had the bare faced cheek to abolish the cheaper BT Standard Line Rental (a call plan where 0870 calls did actually cost the same as a geographic national day time call) and forced all their customers to at least subscribe to BT Option 1 (line rental around £9 a quarter higher) at a so called "cheaper" national call price of 3p per minute (still more expensive than the 01/02 call price being charged by many of BT's competitors)

It was the panic response of BT to losing sp much geographic (01 and 02) calls business to other companies that has now unmasked the full nature of the 0870 calling scam and brought public and press attention on to it.

However the scam has actually been there for many years.  For instance in 1999 I could make all my geographic calls starting 01 or 02 for 2p per minute in the daytime with AXS Telecom but an 0870 call on the same BT line would cost me 7.91p per minute.  The only thing that has changed now is that even Mr dumb lazy and average who routes all his calls through BT is now paying more for 0870 plus also the takeoff in the marketing of so called all inclusive calling plans (eg BT Option 3) from which 0845 and 0870 are quite unjustifiably excluded.

Also you say that your company has been perpetrating this 0870 scam for many years and that no one complained in the past but all I can say is that you are very lucky to have ripped your customers off in this way for so long and yet to have avoided complaints because most other companies had not in the past yet started to use 0845 and 0870 numbers.

The reason people are so angry now is because the cost of making a geographic call (starting 01 or 02) in the daytime has fallen to only 1p per call (even if it is 30 minutes long - see www.call18866.co.uk ) while 0870 still costs 7.5p per minute or £2.25 for 30 minutes.

Many ordinary subscribers now have to pay an extra £30 or £40 a quarter for calling 0870 numbers that they would not have to pay if those numbers started 01 or 02.  Also many people do not complain because they call the numbers at work and yet these extra call costs for private/personal calls are being passed on to the businesses they work for.

BT sold 0870 and 0845 on a lie that they were ordinary national and local rate calls but they never were right from the start as discount call carriers could never offer discount prices for these calls.  There was obviously a convenience for your business in being able to reroute the NGN numbers where you liked but the fact is that your business should have always have paid BT for this additional facility instead of it being passed on to the customers who were calling you.

The only solution is the one that BT has now proposed to Ofcom.  This is that 0845 and 0870 calls should in future not cost any more than a geographic call starting 01 or 02 on your current telecoms provider's package (be that BT or be it some other telecom company) and thus all revenue share for calling such numbers would end.

This is the only solution that actually works.  It is too late in the day to expect all companies with 0845 and 0870 numbers to switch them back to geographic numbers.  The only solution now is to return these numbers to ordinary priced calls and then make those  who still want to charge customers for receiving call be regulated by the much tougher controls of ICSTIS for 09 prefixed numbers.  As the public know these are premium rate numbers, as they are honsetly marketed, a company such as yours would not dare to switch over to one.

The reason the 0870 scam happened is because BT bundled the convenience of non geographic numbers with a secret hike in the price of making these calls compared to geographic calls.  The hike was rather subtle since it was achieved by the price of these NGN calls not falling at all compared to the vast and constant drop in the price of geographic phone calls.
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Graham
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Re: defending a company
Reply #5 - Mar 15th, 2005 at 3:16pm
 
My advice for any company which is seeing customer complaints on this issue is to make sure that at the next printing cycle of their company stationary they do put geographical numbers - i.e. plan for it now - since the old stationary will take a while to use up - and if they are seeing a trickle of complaints now imagine what a flood of complaints and rate of loss of customers they will be getting in 1 year time, 2 years time etc.
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« Last Edit: Mar 15th, 2005 at 3:22pm by Graham »  
 
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Shiggaddi
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Re: defending a company
Reply #6 - Mar 15th, 2005 at 4:53pm
 
Thankyou Pirate King for your comments.

You don't need to tell anyone which company you work for, but have you been to the site listings, and made an entry into the unverified entries, as to the correct geographical number for your company?

Many listings are incorrect, because companies don't like giving out their real numbers.

It is ironic that alot of company time is now being taken up with complaints about 0870.

My Mum had to phone up a company the other day, and the geographic number she had went through to the wrong department.  When she asked if they had a geographic number, they only knew the 0870 number to call.

If customers are happy to call 0870, then fair enough, but as more and more people know about the scam, then if companies don't want loads of complaints, then surely the most economic way would be to inform customers who ask, the correct geographical number, or range of numbers, for various deparments.

As customers, we don't want to be ringing around the wrong departments, any more than businesses want to use up more manpower to answer these calls.
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Pirate_King
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Re: defending a company
Reply #7 - Mar 15th, 2005 at 8:19pm
 
I'd just like to thank everyone who has replied to my comments for doing so. In my time, I've been a member of forums where anyone who dares to challenge popular opinion is shot down immediately. It is refreshing to find the arguments for and against this matter being discussed and people's opinions changing based on what new people "bring to the table".

I would first like to say that you have clearly updated my company's numbers since the last time I looked on this site several months ago- quoting them word-for-word from the letter that I have composed to inform our customers of these numbers. However, some are still correct- one going to a specialist department that would be of no use to most people. i'll be discussing this with my superiors tomorrow, and will see about verifying these. Again, I must remind readers that I am operating outside of my company's authority.

I'm glad to see that there are people on this forum who understand that different companies went to 0870 (and 0845) numbers for differing reasons, and that small-medium businesses chose them primarily for the functionality of the phone systems they provide, and not for the revenue that they generate.

This leads directly to my next point, something that I have discussed with my colleagues at work today. It seems that the revune we "earn" from the 0870 lines is pretty much the same as the costs to run the lines. which I'm sure will lead to comments such as "why should the consumer have to pay this?"

Nothing in life, or in business at least, comes for free. If the costs of running call centre phonelines did not come from the revenue earned by the phone lines, then it would have to come from elsewhere in the company, which would mean either higher prices for products, or cost-cutting elsewhere which would perhaps lead to a poorer quality of service.

I read a post on here about Direct Line's response to the 0870 issue, and I hope no-one will mind if I use them as an example.

Say, for instance, they got rid of their 0870 service, changing it to a freephone number, or perhaps a comeplte rehaul of their phone systems and advertising to account for their various regional call centres to be advertised and orgnaised separately as different local numbers. However, as a result of these changes and the new costs of running these new lines, the cost of their insurance increased by 10-15% for every policy holder, thus eliminating the prices and promises that they have been able to keep all these years. This is perhaps an extreme example but it is a possible outcome, begging the question of what is better for the customer- a self-perpetuating phone service, or increased cost/loss of service elsewhere in the company.

I know that my superiors are in constant contact with various telecom providers, OFCOM/OFTEL and their own superiors pretty much every day at the moment trying to work out how best to resolve the matter and not suffer the costs to our products or service. It is not an easy decision to make but one thing I'm sure of is if we're doing it, you can be sure numerous other companies are doing it too.

I would also like to respond to the constant reference to 0870 as a "scam". While it is true that until recently consumers were unaware that money was being made off these numbers, it was also only fairly recently that the increasingly competitive telecoms industry meant that customers started being charged more for these calls than to a geographic number.

It does really seem that for some people (and I really do not mean everyone who posts on this site) it is merely a complaint that 0870 costs stayed the same while everything else got cheaper. I agree that the numbers need to be re-classified, but as customers were historically not being over-charged for this service, I fail to see how it can be considered a rip-off or a scam.

While reclassification is one answer (although I agree with NonGeorgraphicMan about these numbers to be included as national calls in talk plans/packages), I don't think that they should be reclassified as "Premium Rate"- 7.5ppm is still a far cry from £1 or £1.50p/m.

I would also like to leave you with one final point, one which is based on a direct example of one of our customers. He too complained that he was being ripped-off by our phone numbers, until it was learned that the phone company he was with, whose cheap call package seemed so tempting compared to what BT were offering, was actually charging him extra to call our number. This wasn't our charge. It wasn't BT's charge. It was a charge added by his new call provider, clearly there to cover the costs of his cheap calls to local/national numbers.

Like I said, nothing in business comes for free- the money has to come from somewhere...
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« Last Edit: Mar 15th, 2005 at 8:27pm by Pirate_King »  
 
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Dave
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Re: defending a company
Reply #8 - Mar 15th, 2005 at 9:36pm
 
Quote:
Say, for instance, they got rid of their 0870 service, changing it to a freephone number, or perhaps a comeplte rehaul of their phone systems and advertising to account for their various regional call centres to be advertised and orgnaised separately as different local numbers. However, as a result of these changes and the new costs of running these new lines, the cost of their insurance increased by 10-15% for every policy holder, thus eliminating the prices and promises that they have been able to keep all these years. This is perhaps an extreme example but it is a possible outcome, begging the question of what is better for the customer- a self-perpetuating phone service, or increased cost/loss of service elsewhere in the company.

I would much rather this than the current situation of obtaining services and/or revenue by deception.

Quote:
I would also like to respond to the constant reference to 0870 as a "scam". While it is true that until recently consumers were unaware that money was being made off these numbers, it was also only fairly recently that the increasingly competitive telecoms industry meant that customers started being charged more for these calls than to a geographic number.

A more competitive telecommunications industry was inevitable. These numbers have been allowed with no way of telcos reducing calling rates. This stiffles competition within the market.

It is a scam because these numbers have been described as 'local' and 'national' rate, but they are not charged at these rates. Phone companies advertise their packages and in the smallest small print it says that these numbers are exempt. Do people check what the rates are? Probably not until they get their bill.

Quote:
It does really seem that for some people (and I really do not mean everyone who posts on this site) it is merely a complaint that 0870 costs stayed the same while everything else got cheaper. I agree that the numbers need to be re-classified, but as customers were historically not being over-charged for this service, I fail to see how it can be considered a rip-off or a scam.

While reclassification is one answer (although I agree with NonGeorgraphicMan about these numbers to be included as national calls in talk plans/packages), I don't think that they should be reclassified as "Premium Rate"- 7.5ppm is still a far cry from £1 or £1.50p/m.

It is premium rate because, by definition, the caller is being forced to pay extra for the services the recipient should be paying for. In addition, consumers pay extra for 'discounted' or 'inclusive' call packages which exclude these numbers. Of course, the telecoms companies, as a whole, have their cake and eat it. They sell NGNs to businesses and calling packages at extra cost to the consumer which exclude calls to these numbers.

Quote:
I would also like to leave you with one final point, one which is based on a direct example of one of our customers. He too complained that he was being ripped-off by our phone numbers, until it was learned that the phone company he was with, whose cheap call package seemed so tempting compared to what BT were offering, was actually charging him extra to call our number. This wasn't our charge. It wasn't BT's charge. It was a charge added by his new call provider, clearly there to cover the costs of his cheap calls to local/national numbers.

BT are quite often the cheapest for 084/087 numbers. The Post Office is one example of higher charges than BT, being 10p/min in the daytime to call 0870 (see this thread).

Another way of looking at it is that consumers believe that these numbers are charged at the same rate as normal geographical calls, and the fact that they perceive this means that they don't look at the tariff pricing.

May I suggest that the best way for your company to see what customers are actually being charged is to check out providers' price lists.
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NonGeographicalMan
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Re: defending a company
Reply #9 - Mar 15th, 2005 at 9:55pm
 
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BT are quite often the cheapest for 084/087 numbers. The Post Office is one example of higher charges than BT, being 10p/min in the daytime to call 0870.

Another way of looking at it is that consumers believe that these numbers are charged at the same rate as normal geographical calls, and the fact that they perceive this means that they don't look at the tariff pricing


The reason that BT are now cheaper (at a glorious 7.51p per minute which has only gone down 0.4p per minute in 10 years) than most of their competitors in the weekday daytime for 0870 numbers is because in the name of so called deregulation and competitition Ofcom has now allowed the main telecoms company with Significant Market Power (SMP) in the uk telecoms marketplace, namely BT, to charge its competitors more for terminating 084/7 calls than it charges for terminating calls originated from BT's owm customers.

Ipso Facto this means that customers of other telcos have to pay more than BT customers for making these calls but the extra profit is mainly going to BT or Cable & Wireless who now charge other companies more to terminate them than they charge themselves.  Yet the customer blames the other company for the extra call cost and if anyone then rings BT customer service to complain they cheerfully offer to abuse their "terminate other" CPS power and to reconnect you forthwith to good old cuddly BT.

Why do you think it is that even www.call18866.co.uk who only charge me 1p for each 01/02 geographic call I make (no matter how long it is) now have to charge me 9p per minute (plus 1p connection) for an 0870 call?

It is not because they are a ripoff phone company or because they want to lose my business on these calls but because the call costs to them are so much more than an 01 or 02 calls that they have to charge this much just to make the same profit margin.

How else do you think that companies like yours can earn up to 4.5p per minute for receiving 0870 calls and where exactly do you think the other 3p to 5.5p per minute is going (depending on originating call provider)?  Well that other 3p to 5.5p per minute is usually falling straight into the hands of cuddly old BT or Cable & Wireless.

No wonder BT sales & marketing has worked so hard for so many years to make 0870 into the monster that it has become.  A monster so big that even the more corporate & social responsibility minded BT main board has now finally become frightened of it and wants to kill it off.
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