Like most countries, the UK has had free phone numbers for several decades that use the 0800 prefix. This was later supplemented with 0845 numbers that were charged at the same rate as a local call even if the destination was outside the local area.

But whereas free phone had been used in the States to shrink distance, in the UK it had more to do with the so called north-south divide that made it very difficult for companies to do business outside their area. 08 numbers were used to bridge this tendency towards parochialism.

Then in the mid-nineties British Telecom decided to experiment with what were described as national rate numbers that, as the name implies, charged callers the same rate as for a national call. The first time they were used was for a phone-in competition promoting a soft drink. The carrot offered to the advertiser was the opportunity to receive part of the call cost as a rebate. The experiment was immediately successful with hundreds of thousands of calls being received within the first few weeks of the campaign.

Realising that callers were not price sensitive, within a short time businesses began to generate an income as well as routing calls according to the time of day or the caller's geographic location. Thus advertisers began using 0800 free phone numbers for sales and 0870 national rate numbers for customer service.

All went well for several years until the big users started to abuse the system by putting callers on hold for long periods. Callers complained they were being charged for the doubtful privilege of being held in a queue. What irritated them further was that calls to 0870 numbers were not included in the calling discount plans of the phone companies and mobile companies make a surcharge. Of course, the companies using these numbers said it wasn't intentional; they had just misjudged consumer response. But they would say that wouldn't they? And it wasn't just big companies. Government departments and charities also became big users of 0870 numbers, attracted by the rebates as well as the number routing facilities.

As time went by Ofcom, the UK regulatory body, received an ever increasing number of complaints from the public. Radio phone-ins and newspaper columns soon picked up on this dissatisfaction and Ofcom was forced to implement an enquiry. Inevitably the phone companies and advertisers fought back and one enquiry lead to another. Eventually Ofcom reached the decision that from the end of 2007 the cost of calling an 0870 number would be reduced to that of a normal call. At the same time rebates would end.

This development does not signal the demise of 0870. Indeed it may get a new lease of life. The ability to intelligently route calls will still be attractive to users although, from the end of 2007, they must expect to pay a rental for each 0870 number whereas previously, as well as the rebate, they were usually provided free of charge. Of course, they will also have the option to use other 08 prefixes as well but, if they have already spent considerable sums incorporating an 0870 number into their business, they may be loath to change.

Just like most things in life it is the few that spoil things for the many. There are hundreds of thousands of small businesses in the UK using 0870 numbers for the ability to change number routing even though they never receive enough calls to make the rebate worthwhile. They answer their calls promptly and don't put callers on hold. When a one-man band goes on holiday arrangements can be made for someone else to receive the calls. When a small business out grows its premises and moves, the 0870 number is easily reconnected to the new phone number. And 0870 virtual switchboards make it easy for small businesses to enjoy the same facilities as a much larger company.

These small and medium size businesses will go on using 0870 numbers for the foreseeable future and continue to enjoy the number routing facilities. Except from the end of 2007 their customers will be able to call them for the price of a local call.

Author Michael Soliatis writes about telecom issues and offers essential virtual switchboard information.