Due to the ongoing scarcity of 800 area code phone numbers, recent reports are indicating that phone companies are beginning to raise the cost to obtain 800 numbers.
Many providers are expected to follow suit.
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This seems to be a hot topic these days. Under rules established in 1997 by the FCC, 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 numbers is likewise illegal. A subscriber may not acquire more toll-free numbers than they intend to use. By FCC definition, “hoarding” also includes “brokering” which is the illegal lease or sale of toll-free numbers for a fee.
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Toll free service has gone through several incarnations over the past four decades. First, 800 numbers were primarily used by big business. This is still the case—almost all of the Fortune 500 companies have an 800 number. Then, toll free service became more affordable and easy to obtain, causing a surge in use by small businesses, online companies, and not-for-profits. Now, personal use is all the rage.
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When an 800 number is disconnected, it eventually becomes available on the 800 Service Management System, (SMS/800) database. These retired numbers are in great demand and the competition to secure released numbers is fierce.
Industry insiders are recommending that anyone wishing to obtain a toll free number secure one immediately. Thousands of toll free numbers are registered each day. With a limited number of possibilities, the finite supply is nearly expended. Toll free numbers are assigned by entities called Responsible Organizations, toll free service providers who have access to the SMS/800 database of available numbers.
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More than two-thirds of the available supply of 800, 888, 877, and 866 numbers are taken and millions of new subscribers are registering every year. Business owners who wait much longer to obtain a number might find themselves out of luck. In a competitive market, a toll free number is a valuable commodity for every business.
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Experts say that consumers recognize that many of the advantages of 1-800 numbers outweigh standard local phone service. Toll free service is becoming increasingly common with parents wishing to keep in close contact with children and teens. Businesses with a 1-800 number see increases in sales, word of mouth referrals and a decrease in product returns. Standard local phone service does not provide any of these advantages.
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During a recent discussion with members of the Tollfree Advisory Committee, it was agreed that if the database of toll free numbers isn’t beefed up soon, the finite supply of toll free numbers could run out. Last year, a plea for the deactivation of unused 800 numbers resulted in a temporary surge of numbers returned to the main database. But despite these mass replacements, the supply of available toll free numbers continues to dwindle as thousands of subscribers register for a toll free number each day. It’s time for some action.
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During a workshop at an upcoming telecommunications conference, members of the Tollfree Advisory Committee at SMSGOV.com will be discussing the scarcity of available, good toll free numbers and how it is causing a surge of subscribers scurrying to obtain toll free. At previous discussions some of the attendees have feared that small businesses nationwide could see disastrous economic fallout. Toll free numbers are proven as an effective marking strategy that increases customer base and boosts revenue. The depletion of supplies are creating much discussion within the industry.
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Once used primarily by big businesses, 800, 888, 877, and 866 toll free numbers are now popular with small businesses, charities, churches, and for personal use. Toll free service has become a staple of all successful businesses. Demand has grown quickly but the supply of numbers has remained stagnant.
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With the availability of new 1-800 numbers rapidly declining as demand for toll free service skyrockets, industry insiders are urging the owners of unused toll free numbers to release them back into the system.
Experts say if the database of numbers isn’t beefed up soon, the finite supply of toll free numbers could run out. It is estimated that 8,000 numbers are registered each day.
Read more here.
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Toll Free Service Management System News 