Mobile phone companies ordered to end the 0800 rip-off and stop charging up to 40p a minute for freephone calls
Mobile phone networks have been
ordered to stop charging customers up to 40p a minute for dialling what
should be Freephone 0800 numbers.
The move was announced today by the telecom watchdog, Ofcom, as part of a wider crackdown designed to tackle confusion around call costs.
Currently, many government departments, local councils, hospitals, charities and companies use 0800 numbers for people seeking help and advice.
The idea is that the calls should be free so the public can seek information they need without fear of generating big bills.
However, while landline firms like BT ensure calls to 0800 numbers are free, the same rules do not apply to the big mobile networks.
As a result, conservative estimates suggest the likes of Orange, T-mobile, Vodafone, O2 and Three are making more than £100million a year from what should be a free service.
Telecoms expert at broadbandchoices.co.uk, Dominic Baliszewski, welcomed moves to make the price of calls clearer to consumers.
‘Making ‘080’ numbers free from all telephones including mobile phones is excellent news since it’s rarely practical to redial from a landline to avoid charges for what are generally assumed to be ‘free phone’ numbers,’ he said
‘Greater cost transparency and simplicity of charging is badly needed in the landline and mobile phone sector. We regularly hear from consumers who are confronted with charges on their phone bill that they were unaware of.’
Ofcom’s proposals also include new rules governing the cost of calling any number beginning 08, 09 or 118, which covers the many directory enquiries services.
This would see each network, whether it is a landline provider like BT or a mobile network, having one capped access fee for dialling any of these numbers.
Organisations and companies receiving these calls would then have a separate fee of their own, which they would have to declare in advertising and recorded messages to customers.
Consequently, a householder dialling an 0845 number, for example, would know what their own service charges to make that call and would then add the fee imposed by the business they are trying to reach to get a total figure.
The new regime, which is set to
come into effect at the end of 2014, has its own complications, but
Ofcom believes it is easier to understand than the current system.
Ernest Doku, telecoms expert at the price comparison service, uSwitch.com, said the end to mobile charges to call 0800 numbers was a ‘long-overdue victory for common-sense’.
On efforts to shine a light on other 08, 09 and 118 charges, he added: ‘News that Ofcom is tackling one of the most notoriously murky parts of the telecoms market is very welcome.
‘Many consumers, either perplexed by
or unaware of the costs involved, have taken a punt on calling high rate
or non-geographical numbers hoping they won’t be hung out to dry when
their bills come in.’
However, Mr Doku said the changes would not address the high and rising cost of calling premium rate numbers beginning 09.
‘Being more transparent about the high cost of making a call is one thing – tackling these often extortionate costs is another,’ he said.
‘Reports suggest certain premium rate numbers have gone up by more than 400per cent over the last two years - it is these costs that are really doing the damage to people’s pockets.’
Currently, many GP surgeries and advice lines use 0845 numbers where they collect part of the cost of the call to subsidise their activities. In future, they will be required to declare how much get in recorded messages to callers.
The Fair Telecoms Campaign believes that forcing organisations to reveal how much they are making from incoming calls will shame them into moving to free 0800 numbers.
Currently, T-mobile charges up to 40p a minute for calls to 0800 numbers for customers on a monthly contract and 20p a minute for those with pay as you go phones.
Its sister company Orange charges 35p a minute for pay monthly customers and 25p-40p for those with a pay as you go phone. The charge is 15p-20.4p with O2; 10.2p-15.3p with Three; and 14p with Vodafone.
A spokesman for EE, which is the parent company of Orange and T-mobile, refused to respond to the rip-off allegations. A spokesman said: ‘We can’t comment while the consultation is still on-going.
The move was announced today by the telecom watchdog, Ofcom, as part of a wider crackdown designed to tackle confusion around call costs.
Currently, many government departments, local councils, hospitals, charities and companies use 0800 numbers for people seeking help and advice.
The idea is that the calls should be free so the public can seek information they need without fear of generating big bills.
However, while landline firms like BT ensure calls to 0800 numbers are free, the same rules do not apply to the big mobile networks.
As a result, conservative estimates suggest the likes of Orange, T-mobile, Vodafone, O2 and Three are making more than £100million a year from what should be a free service.
Telecoms expert at broadbandchoices.co.uk, Dominic Baliszewski, welcomed moves to make the price of calls clearer to consumers.
‘Making ‘080’ numbers free from all telephones including mobile phones is excellent news since it’s rarely practical to redial from a landline to avoid charges for what are generally assumed to be ‘free phone’ numbers,’ he said
‘Greater cost transparency and simplicity of charging is badly needed in the landline and mobile phone sector. We regularly hear from consumers who are confronted with charges on their phone bill that they were unaware of.’
Ofcom’s proposals also include new rules governing the cost of calling any number beginning 08, 09 or 118, which covers the many directory enquiries services.
This would see each network, whether it is a landline provider like BT or a mobile network, having one capped access fee for dialling any of these numbers.
Organisations and companies receiving these calls would then have a separate fee of their own, which they would have to declare in advertising and recorded messages to customers.
Consequently, a householder dialling an 0845 number, for example, would know what their own service charges to make that call and would then add the fee imposed by the business they are trying to reach to get a total figure.
Charges: Mobile phone companies such as Three,
pictured, Orange, O2 and T-Mobile are making an estimated £100million a
year from changes on 0800-numbers
Ernest Doku, telecoms expert at the price comparison service, uSwitch.com, said the end to mobile charges to call 0800 numbers was a ‘long-overdue victory for common-sense’.
On efforts to shine a light on other 08, 09 and 118 charges, he added: ‘News that Ofcom is tackling one of the most notoriously murky parts of the telecoms market is very welcome.
Blissfully unaware: Many customers do not know they are being charged
However, Mr Doku said the changes would not address the high and rising cost of calling premium rate numbers beginning 09.
‘Being more transparent about the high cost of making a call is one thing – tackling these often extortionate costs is another,’ he said.
‘Reports suggest certain premium rate numbers have gone up by more than 400per cent over the last two years - it is these costs that are really doing the damage to people’s pockets.’
Currently, many GP surgeries and advice lines use 0845 numbers where they collect part of the cost of the call to subsidise their activities. In future, they will be required to declare how much get in recorded messages to callers.
The Fair Telecoms Campaign believes that forcing organisations to reveal how much they are making from incoming calls will shame them into moving to free 0800 numbers.
Currently, T-mobile charges up to 40p a minute for calls to 0800 numbers for customers on a monthly contract and 20p a minute for those with pay as you go phones.
Its sister company Orange charges 35p a minute for pay monthly customers and 25p-40p for those with a pay as you go phone. The charge is 15p-20.4p with O2; 10.2p-15.3p with Three; and 14p with Vodafone.
A spokesman for EE, which is the parent company of Orange and T-mobile, refused to respond to the rip-off allegations. A spokesman said: ‘We can’t comment while the consultation is still on-going.