The premium rate minefield
We have never liked 0870 numbers.
Wherever possible we have listed landline numbers and heartily recommend Say No to 0870 where alternatives to 0870 numbers (and others) are posted.
However, as the terrestrial phone companies have continued to increase their charges ahead of inflation, the gap between 0870 and other numbers is shrinking.
So much so that TalkTalk now makes no difference between 01/02/03 numbers and 0870 (and 0845) who also have the cheapest call charges.
BT charges 8.7p per minute for 0870 numbers and 7p for 01/02/03 numbers, around a quarter more expensive, but by the time the call set-up charge is included a 5 minute daytime call will cost around 45p to a landline and 55p to 0870. For 01/02/03 numbers TalkTalk is marginally cheaper at around 44p, but this is 10p cheaper for 0870.
Many organisations, companies and even doctor’s surgeries started to use 087 numbers which were much more expensive than their alternative local numbers. Businesses were tempted to use these numbers as they would get a cut of the call revenue themselves – hardly an incentive for them to keep the call short!
0870 numbers where originally known as ‘National Rate’ at a time when the forerunner of bt charged different rates depending on how long the wire was between two handsets. 0845 business numbers charged just the local rate, so that customers in different parts of the country were not disadvantaged when calling. Naturally this service cost businesses something, but not as much as funding the whole call cost of an 0800 freephone number.
The rise of mobile phones, where geographical location (within the UK) is irrelevant, bt has stopped worrying about call distance, but not about 0870 numbers.
Call Charges
Meanwhile both bt and Virgin have been jacking up their prices well ahead of inflation. (Another 10% from bt at the beginning of this year).
During the day a one minute local call through bt (the minimum, as seconds are rounded-up) costs 18.5 pence and further minutes are 7p. Evening (after 7pm) and weekend calls are just 1p per minute but the 11.5p per call set-up cost still stays the same.
Anyone averaging more than three 3 minute calls a week will be well advised to switch to the unlimited calls plan for just £5 per month. And you get free 0870 and 0845 numbers thrown in. TalkTalk’s equivalent is £6.21/month
Virgin calls are more expensive, with a set up of 12.24p and minutes at 8.68p so the 1 minute local minimum is 21pence. Virgin’s unlimited monthly plan is also considerably more expensive at £8 and, tellingly, doesn’t include free 0870 or 0845 numbers.
Call costs as at March 2011
BT
Set up fee 11.5p
Daytime calls 7p per minute, evenings (7pm-7am) 1p per minute
0870 calls 8.7p per minute; 4p per minute evenings & 1.5p per minute evenings.
0845 calls 4p/1p/1p
VIRGIN
Set up per call 12.24p
Daytime calls 8.68p per minute
0870/0845 calls set up per call 11.24p. Daytime calls 10.22p per minute.
[Not included in free call plans]
TALKTALK
Set up per call 11.14p
Daytime calls 6.54p per minute (inc 0845&0870)
Line Rental 12.30/month + 6.21 unlimited