Insiders are calling it the perfect storm. Toll free phone service has hit all all-time high in popularity. The 800 numbers are so successful that once obtained, they are rarely retired. And the federal government has not released reserved numbers intended to alleviate the shortage. Supplies will soon run out.
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In the telecommunications industry, we are once again hearing rumors of toll free rationing. The federal government rationed 800 numbers in 1995 until the new 888 pre-fix was introduced a year later. Now, the supply of available 1-800 numbers is again nearly depleted. This marketing tool has been so successful that the available numbers are decreasing while demand is growing at unprecedented rates. If rationing is implemented, obtaining a new toll free number will be more difficult than ever before.
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Toll free service has a long history. 800 numbers were introduced in 1967. By the 1980s, nearly half of all long distance calls would be toll free. Today, 98 percent of adults say they regularly use toll free numbers. Meanwhile, the supply of 800 numbers are at an all-time low. More than two-thirds of the available numbers are taken and there are no immediate plans by the FCC to introduce a new pre-fix.
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The dearth of toll free numbers continues. 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. Some carriers still have access to a good stock of numbers but with toll free in such demand, one cant help but wonder how long these supplies will last?
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Hearing more and more about fiber optics lately. Fiber optics used for telecommunications is still considered more reliable than VoIP, particularly for long distance calls, because it allows for longer intervals of signal transmission without interruptions. Fiber optics provides a quality connection that ensures clarity in every call. With this technology, optical fibers are used instead of metal, reducing lost connections from electromagnetic interference. Fiber optics is also considered more secure. It is difficult, if not impossible, to detect motion through the fibers. This reduces concerns over phone calls being improperly monitored.
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866 numbers are the newest toll free numbers, released by the Federal Communications Commission in 2000 to address the shortage of 800, 888, and 877 numbers. Once consumers began to recognize the 866 pre-fix as toll free, the value of 866 soared. Recent studies indicate that 9 out of 10 consumers recognize 866 as a toll free number. The 866 numbers are more popular then ever before, increasing in demand every day.
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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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In 1994, the United States Congress approved the Communications for Law Enforcement Act (CALEA). The regulations were intended to preserve a wiretapping law put in place in 1968 and allow wiretapping over digital phone networks. CALEA requires telecommunications carriers to modify their equipment, facilities, and services to aid surveillance capabilities. Initially there was some question as to whether this would apply to VoIP—Voice Over Internet Protocol service—but in 2005 the courts ruled that indeed VoIP must comply with CALEA.
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The New York Times is reporting that Verizon has agreed to sell divisions that offer service to 4.8 million phone lines in 14 states to Frontier Communications for $3.3 billion in cash and $5.2 billion in Frontier stock. If it goes through, the deal will triple the size of Frontier, a collection of rural phone companies. As part of the reported deal, Verizon will wind up owning at least two-thirds of Frontier’s shares. The move allows Verizon to concentrate on its wireless business and on serving large companies. The company says that after the deal, only 15 percent of its revenue will come from residential customers.
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A recent plea for the deactivation of unused 800 numbers resulted in a 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 1- 800 number each day.
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