19/12/2017
Review of the 070 ‘follow-me’ range (UK)
Evidence suggesting that past misuse and high termination rates have resulted in fraudsters receiving up to 60% of all calls made to 070 ‘follow-me’ numbers underpins an Ofcom review addressing these and other competition and consumer concerns and seeking to determine what can be done to address them.
Personal or ‘follow-me’ numbers were established in the dedicated 070 range during the 1990s before the introduction of mobile roaming as the basis of a ‘follow me anywhere’ service available while travelling domestically or abroad.
Wholesale charges for calls made to 070 numbers are historically high compared to other services, eg 40 pence per minute (ppm) compared with UK mobile termination rates of around 0.5ppm. Ofcom considers this gives 070 providers significant market power (SMP).
Market research suggests that consumers often mistakenly believe they are calling mobile 070 numbers and expect to be charged at the mobile call retail rate or that the call will be covered in their ‘call bundle’.
Fraud totalling about £17m was reported to the police in connection with 070 numbers for the period 1 January 2011 to 31 July 2013, suggesting unreported fraud was much higher.
This and other evidence convinced Ofcom that misuse has undermined the potential of the 070 range for the innovative delivery of communication services. It launched ‘Review of Communications Costs (UK)’, (CPA News, 19 May 2017) to find ways of protecting consumers from the use of 070 numbers, as well as 118 directory enquiry numbers.
‘Personal Numbering: Review of the 070 Number Range’ identifies the harm arising from 070 providers’ SMP as
- excessive retail prices being charged to callers of 070 numbers
- bill shock as a result of confusion between 070 and mobile numbers
- distorted choices between 070 numbers and alternatives
- encouragement and facilitation of fraud
Its proposed solution is a single maximum cap on 070 termination rates applicable to all 070 range holders and equivalent to the mobile termination rates (MTRs) proposed in its June 2017 Mobile Call Termination (MCT) consultation, ‘Mobile call termination market review 2018-21’.
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