Summary
Introduction
1.1 In April 2012 we consulted on a set of proposals designed to address identified market failures in the provision of non-geographic calls. In that consultation we provisionally concluded that substantial restructuring of the existing regulatory controls on the use of non-geographic numbers was required in order to address these market failures and to ensure its future as a vehicle for the delivery of services to consumers.
1.2 One of the key recommendations was that the 080 (Freephone) and 116 number ranges should be free to caller from all telephones, fixed and mobile. However, we said that we would issue a separate consultation on options for the 0500 range, the little-used, 'closed' second Freephone range. This would enable us to seek views on the specific issues surrounding this range from SPs and consumers without them being lost within the broader consultation on the options for other non-geographic numbers.
Current situation
1.3 0500 is a Freephone range like 080. Originating communications providers ('OCPs') may not charge callers for 0500 calls except when their charges are notified to callers at the start of the call, i.e. in a pre-call announcement ('PCA').
1.4 Created in 1982, the 0500 range has been closed to new allocations since 2001. 0500 numbers that were already allocated to customers can continue to be used. Cable and Wireless Worldwide ('C&WW') is the only range-holder for 0500 numbers and operates most active 0500 numbers, although some 0500 numbers have been ported and are now managed by other terminating communications providers ('TCPs').
1.5 The number of active 0500 numbers has been declining over several years. The volume of calls to 0500 numbers is only a small fraction of the number of call minutes to 080 numbers (and of volumes on some of the other non-geographic number ranges like 0845), and a very large proportion of 0500 calls are to a small group of numbers operated by fewer than 30 organisations. Consumer awareness and understanding of the 0500 range is very poor compared to other non-geographic number ranges.
1.6 We have sampled the views of most of the major 0500 users (that is, the organisations called using 0500 numbers termed 'service providers'). They generally prefer that 0500 is aligned to 080, but they recognise the poor consumer understanding of the range and are open to other options including withdrawal of the range, particularly if it were done in a way that minimised disruption and costs.
Proposal to withdraw 0500
1.7 In this consultation we consider the options available for the 0500 range maintaining the status quo; aligning it with 080 as free-to-caller; capping charges from mobile phones; or withdrawing the number range.
1.8 Our preferred option is to withdraw the 0500 range. We consider that, on balance, this offers the greatest net benefit to consumer - reducing consumer confusion, secures best use of telephone numbers, and enhances the clarity and simplicity of the new Freephone regime (080) for the benefit of consumers and businesses.
1.9 We encourage stakeholders to read these proposals in conjunction with the analysis and proposals in our April 2012 consultation, in particular in relation to the 080 Freephone range.
Implementation
1.10 Clearly, withdrawing a number range will lead to some additional costs being incurred by existing operators of the numbers. While our discussions with a sample of service providers suggest such costs are likely to be small (and in some cases negligible), the level of cost, and disruption, is related to the speed with which migration from 0500 would need to be undertaken. A longer period for the withdrawal of 0500 numbers would lower costs for affected organisations.
1.11 Accordingly, we are proposing an implementation period of up to 2 years.