Bootlegging Toll Free Numbers

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.

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What Part Does the FCC Play in Regulating Toll Free Phone Numbers?

The Federal Communications Commission (FCC) regulates the use of toll-free numbers and establishes rules on how they can be obtained and used.

Launched in 1967 by AT&T, 800 numbers came under the purview of the FCC in the 1980s when the phone service monopoly broke apart. In 1991, the FCC required that toll-free numbers be portable, meaning that a toll-free number subscriber can “port” his or her number to a new provider when changing toll-free number service providers.

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Brokers Should Be Warned

Some people in the toll free industry would be benefitted by remembering that according to regulations enacted on April 11, 1997 by the Federal Communications Commission, toll free phone numbers cannot be sold or brokered under any conditions. These rules were approved after the FCC fielded numerous complaints about price gouging for catchy vanity numbers and popular numeric sequences and they are still active and enforced.

855 Area Code News!!!

Got the news on pending release of the 855 toll free area code numbers from a very reliable telecommunications expert. This is it: the FCC’s designated Toll Free Administrator, has notified the FCC of the projected depletion of currently available toll free phone numbers with the 800, 888, 877 and 866 area codes and has requested approval to release the 855 area code numbers. The anticipated timeframe, we hear, is the last quarter of 2011. At last!

Federal Oversight

The FCC does not play a role in the assignment of new toll free numbers. Instead, they regulate the guidelines under which 1-800 numbers can be used and obtained. For instance, the FCC has declared that the hoarding and warehousing of numbers is prohibited and punishable with severe fines—recently illustrated by a citation for an $11,000 fine each day a California company continued to implement improper toll free practices. Numbers are assigned by toll free carriers (resp. orgs) and phone companies. Subscribers have the option of shopping around for the best quality and the best rates.

Heafty Fines For Toll Free Hoarders

What happens if regulators discover illegal hoarding or sales of toll free numbers. 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. Remember, last year, an astounding daily fine of $11,000 was reportedly imposed on a California company accused of improperly using toll free numbers.

Experts Forsee 855 Numbers As Highly Sought After

Widespread concerns about the dwindling supply of toll free numbers may not be addressed anytime soon. According to sources at the 800 Service Management System (SMS/800) the reserved 855 pre-fix, intended to restore stocks of toll free numbers, may not be released by the Federal Communications Commission for several years. In fact, industry insiders say the release of 855 may be put off until 2011.

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Toll Free Taboo: Number Hoarding

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).

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FCC Exercise Control Over Toll Free Use

After a recent blog post on regulation, a reader requested an example of how regulators have controlled the improper use of toll free numbers. Here’s one: 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.

Decline of Available Toll Free Numbers Causes Alarm

Last week, a member of the Tollfree Advisory Committee at SMSGOV.com acknowledged that the scarcity is causing a surge of subscribers scurrying to obtain the available toll free numbers. If supplies deplete much further, small businesses nationwide could see disastrous economic fallout. Toll free numbers are known as an effective marking strategy that increases customer base and boosts revenue.

Read more here.