Black Market: Toll Free Phone Number Brokering

Posted on June 24, 2008 by smsgov

As with any commodity in high demand, a black market for toll free numbers has emerged in the United States, sending regulators scrambling to control the illegal sales of valuable 800 numbers.

With toll free service soaring in popularity while finite supplies of available numbers drop, attempts to illegally buy and sell choice numbers on the black market is increasing.

According to regulations enacted on April 11, 1997 by the Federal Communications Commission (FCC) toll free phone numbers cannot be sold or brokered. These rules were approved after the FCC fielded numerous complaints about price gouging for catchy vanity numbers and popular numeric sequences.

The FCC reports that anyone caught attempting to sell or broker an 800 number faces significant fines. But that hasn’t stopped brokers from attempting to sell numbers on Internet websites and auction sites such as eBay.

As “public resources” that cannot be bought or sold, the FCC deemed the practice of selling specific vanity numbers or numerical sequences illegal. Opponents say this practice hurts the industry because it limits the best use and most practical assignments of specific numbers. Still, the FCC has held fast, cracking down on illegal sales and regulating the assignment of numbers on a first-come, first –served basis from the main database of available numbers maintained by 800 Services Management System (SMS/800).

In 2005, the FCC yanked control of 1-800-Red-Cross from a private California business owner who was leasing the use of the number to local chapters of the Red Cross. When the charity filed a formal complaint, the FCC determined that the brokering was illegal and handed over control of the number to the non-profit.

The attempts to profit from the illegal sale of 800, 888, 877, and 866 numbers are in response to rapidly dwindling supplies. Experts advise anyone interested in obtaining an 800 number should legally obtain a toll free number through a a reputable service provider.

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Black Market: Toll Free Phone Number Hoarding

Posted on June 24, 2008 by smsgov

To overcome severe shortages of available 800, 888, 877, and 866 numbers, hoarding of these cherished phone numbers by toll free providers, and also by individual subscribers, has emerged into an unwelcome black market.

Under rules established in 1997 by the Federal Communications Commission, toll-free service providers cannot reserve a toll-free number without having an actual toll-free subscriber for whom the number is being reserved. By law, available numbers must be doled out on a first-come, first served basis off the main database maintained by the 800 Service Management System (SMS/800).

Hoarding by individual subscribers is likewise illegal. A subscriber may not acquire more toll-free numbers than they intend to use. By FCC definition, “hoarding” also includes “brokering” –the illegal lease or sale of toll-free numbers for a fee.

The FCC began investigating hoarding of 800 numbers as far back as 1995, but despite the subsequent release of 888, 877, and 866 pre-fixes, the practice continues to grow along with the skyrocketing popularity of toll free service. The FCC has the 855 pre-fix reserved to alleviate the shortage but has not yet announced plans to release those numbers.

Concern about the diminishing stock of 800 numbers is creating an even higher demand for toll free service, a marketing tool that the FCC says is “proven” to increase business. Studies show that telephone orders can increase up to 60 percent and word of mouth referrals can rise by 200 percent if a toll free number is advertised.

If the FCC discovers illegal hoarding, they immediately send out disconnect and suspend letters to the owner of the numbers. Additionally, the brokering of toll free numbers can result in hefty fines.

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