Public still confused by premium rate pricing

Consumers are still confused about the cost of calling 087 numbers, according to research by Phonepayplus.

The organisation, which regulates phone-paid services in the UK, said that the total volume of calls businesses received via 087 numbers was estimated at 731 million minutes in the first part of 2009.

It said telephone numbers beginning with 0871 cost anything between five and 10 pence per minute from a BT landline.

However, it found that just under half of the public asked did not know about these call charges and were unaware that the cost went up when calling these numbers from a mobile.

Just over two fifths had also either made a complaint about, or had an problem with an 0871 service in the past six months.

Paul Whiteing, CEO of Phonepayplus, said: "Consumers have made it clear that pricing for 087 services must be easier to understand. They must also be able to make an informed decision as to whether to stay on the line."

Calls to 0871 numbers involve a form of micro-payment whereby revenue can be shared between the company people are calling and the third party providing the telecoms service.

They are used by both large and small businesses, particularly in the travel, ticketing, insurance and retail sectors.

However, they have been under scrutiny for a few years. In April this year, Ofcom set out new clearer information for customers on how much it would cost them to call 0870 numbers.

The new rules, which will be regulated by Phonepayplus when they come into effect on 1 August, say phone networks should be made responsible for ensuring that customers know how much they will be charged for calling a 0870 number.

They will not be allowed to describe the numbers as 'national rate' unless the price is in line with that for calling a 01, 02 or 03 number.

Companies that do not comply with the new rules could be subject to fines.

"Our experience regulating other premium rate services will ensure the necessary safeguards are in place to boost consumer confidence in 087 services. We expect this regulation to be a boon to industry and consumers alike," said Mr Whiteing.