FCC Targets Illegal Sale of Toll Free Numbers

Posted on August 4, 2008 by smsgov

Following the emergence of a black market for valuable toll free numbers, including catchy vanity numbers, sources say federal authorities are cracking down on the illegal sales of 800 numbers.

Insiders say to avoid being caught in an undercover investigation and facing hefty fines from the Federal Communications Commission, anyone interested in obtaining an 800 number should deal with reputable service providers such as Qwest, or AT&T.

The FCC does not play a role in the assignment of numbers to subscribers. However they do set and regulate the guidelines under which 800 numbers can be used and obtained. According to the FCC, hoarding and warehousing numbers is prohibited and punishable with severe fines.

Along with hoarding, the outright sale of specific toll free numbers is likewise illegal. Some crafty entrepreneurs have attempted to skirt the regulations by “leasing” or “renting” numbers. But industry insiders say the crackdown on illegal use of toll free numbers is aimed at this practice too.

The demand for 800 numbers is at an all-time high. Finite supplies of available 800, 888, 877 and 866 numbers are plummeting. Making the situation worse, insiders report that the much-anticipated launch of the new 855 numbers may be held off until 2011. Meanwhile more than two-thirds of available numbers have been taken off the database and millions of subscribers registered for numbers each year.

According to the FCC, toll free numbers are becoming increasingly popular for business and personal use. The supply of retired numbers is low because toll free numbers are so effective in helping businesses thrive. Toll free numbers increase market reach, enhance customer confidence, establish recognition of brand image, and sustain businesses during times of a weak economy.

Growing concern about the limited stock of 800 numbers is creating an even higher demand. The FCC cites toll free service as a “proven” marketing tool for increasing and sustaining business. In fact, studies show that telephone orders can increase up to 60 percent and word of mouth referrals can rise by 200 percent. American adults report that they make an average of 60 toll free calls per year.

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