Experts Expect Toll-free Phone Number Supply To Be Cut Short

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 can see almost instant 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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FCC Cracks Down On Illegal Sale of Toll Free Numbers

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.

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Alternate Toll-free Ration Bill To Be Reintroduced

If approved, this would be the second time toll free numbers were rationed. The federal government rationed coveted 800 numbers in 1995 until the new 888 pre-fix was introduced a year later. Industry insiders are eagerly awaiting the outcome of this latest rationing proposal. Telecommunications experts are reportedly concerned that a toll free number ration could delay new phone service applications in the midst of one of the worst U.S. economic downturns in decades.

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Media Advisory – Decline of Available Toll Free Numbers Continues To Cause Alarm

Reports Cite Several Contributing Risk Factors

On the heels of numerous warnings about the alarming decline in the number of available toll free numbers, SMSGOV.com has now reported that toll service providers’ collective revenue decreased by six billion dollars according to a monitoring report released by the Federal-State Joint Board on Universal Service.

The report, filed with the FCC, is elevating concerns within an industry already worried about a potential meltdown. The popularity of the finite amount of toll free numbers, coupled with the failure of the FCC to release new numbers, has created a deficit of availability that is raising red flags throughout the telecommunications world.

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.

The Toll-Free Ration Bill

Read more about the potential phone embargo

Also causing alarm are the recent reports of increased incidents of illegal hoarding of toll free numbers. The FCC has been clamping down on violations of Section 251 (e) of the Communications Act of 1934, which prohibits the warehousing and hoarding of numbers. To ensure that toll free numbers are distributed in a fair and equitable way, the FCC is taking a close look at suspect activity. Last spring, they cited a potential $11,000 daily fine to the owners of a California company for improper toll free practices. This followed a string of unrelated instances, including at least one owner’s attempt to sell his numbers on eBay.

More on Toll Free Laws

More information on Hoarding

Read about the eBay seller caught auctioning his number

For additional information, go to SMSGOV.com.

Reports of Possible Meltdown within Toll Free Sector

Recent reports have referred to the situation as the ‘the perfect storm” meaning the shortage of numbers, the soaring demand, and the failure of the federal government to release reserved numbers have all collided to create a situation in which rationing, an embargo or even a complete depletion of 800 numbers is possible.

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Could Toll Free Rationing Happen Again?

The federal government rationed coveted 800 numbers in 1995 until the new 888 pre-fix was introduced a year later. Industry insiders are eagerly awaiting the outcome of this latest rationing proposal. Telecommunications experts are reportedly concerned that a toll free number ration could delay new phone service applications in the midst of one of the worst U.S. economic downturns in decades.

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800 Numbers for Personal Use?

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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Toll Free Numbers Disappearing Faster Everyday

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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The Advantages of Toll Frees Vs. Local Numbers

The value of a 1-800 number has become a necessity for any business. Toll free numbers allow callers to reach businesses, organizations and even friends and relatives without being charged for the call. A toll free number lends credibility to any business, enhances customer service, and increases customer confidence. There are no additional installations needed for a 1-800 number and the calls can be routed to any cell phone, landline, or fax. Studies show that sales can double and word of mouth referrals can increase by as much as 200% making toll free service indispensible for business.

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Acquiring Toll Free Numbers Grows Increasingly Difficult

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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