UK Businesses Count the Real Cost of OFCOM Regulations

LONDON -

- ‘Hidden Costs and Time’ Warning From Opal

- Thousands of UK Businesses Affected on August 1st

- Switch From 0870 set to Cost Millions

A new report from Opal, the UK’s leading provider of next generation network technology, has revealed that sweeping new OFCOM regulations could cost cash-strapped British businesses over GBP5,000 in ‘hidden’ charges, not to mention hours of extra management time.

From 1st August 2009, OFCOM will change regulations around ‘0870′ in an attempt to simplify call charges and promote transparency for the consumer. 0870 is currently used by thousands of businesses across the UK to generate income to finance enhanced call services and back-office functions.

Now, any business waiting to avoid a funding shortfall will need to find an alternative number - not only financing the switchover themselves, but suffering significant ‘hidden’ costs associated with communicating a number change, covered in full, below.

Opal’s Managing Change Report

Activity Cost External marketing Stationery (comp slips and letterhead, 5,000) GBP375 Business Cards (5,000) GBP320 Vehicle fleet (4) GBP800 Creative for advertisements (art worker time) GBP100 A5 leaflets (5,000) GBP335 12-page A4 brochure (5,000) GBP1,450 Branded clothing (10 T shirts) GBP30 Website contact details GBP100 Branded merchandise (miscellaneous) GBP500 Internal communications/admin Voice recordings GBP250 Signage (x2, external) GBP800 TOTALS GBP5,060

Geoff Wilson, Business Development Director from Opal, said: “We appreciate the work done by OFCOM. There is an obvious need for more regulation around some of the number ranges. However, we believe the majority of businesses are using the revenue from 0870 to fund enhanced call services to their customers.

“Businesses in the last few months have been left with three options, none of which are preferable. If a business keeps its number then it will lose the revenue it generates. This needs to be replaced somehow, either by cutting costs in other areas of the business, stealth charges to the consumer, or by the business simply absorbing the costs.

“The second option, which the majority of Opal customers are opting for, is to move to an alternative number range, such as 0871 or 0844. However, they will have been hit by the significant hidden costs outlined in our report, not to mention the hours of administration time required to coordinate the change and manage the associated PhonepayPlus regulations. The final option for business is to cease the services they may be providing altogether.

“What’s clear is that the August 1st deadline has put enormous pressure, not to mention expense, on businesses to enable the changes and adequately communicate the revised numbers to their customers.”

“Managing change” report

Working in conjunction with a panel of web, print and marketing providers, Opal’s report examines the approximate costs of reprinting literature and communicating the number change to stakeholders and customers.

Number sequences - the options

Check out Opal’s guide to managing change, (www.opal.co.uk/consult/call_handling/non_geo/ofcom_reg.php)

For further information, please visit: www.opaltelecom.co.uk

Source: Opal UK

For further information, please visit: https://www.opaltelecom.co.uk or contact Will Ockenden or Eloise Garrett at Lucre on +44(0)113-243-1117; opal at lucre.co.uk