Originally Posted by Ian010

Calls to 0845 numbers were "local rate" from landlines, but only until 2004. That was when the price differential based on distance was scrapped for calls to 01 and 02 numbers and all callers moved onto inclusive call plans. At that point the term "local rate" ceased to have any meaning.

These call plans covered calls to 01 and 02 numbers but not to 084 and 087 numbers. From that point on, all calls to 084 and 087 numbers were relatively expensive as every call further pushed up the caller's telephone bill.

With various organisations continuing to mislead consumers by describing their 0845 numbers as "local rate", CAP eventually published some guidance on this matter: http://tinyurl.com/asa0845cap

Since 2009, BT has included calls to 0845 numbers in their call plans. They can only do so by using their market position as the largest terminator of 0845 calls and cross-subsidising the retail call price for their own customers. This is an anomaly in the market. When other providers copy BT's retail pricing for 0845 calls, they generally lose money on every call.

Ofcom's forthcoming changes may well bring an end to inclusive 0845 calls on BT and other landlines. That shouldn't be an issue as most customer service lines will have already migrated to the matching 0345 or other "basic rate" numbers. This is as directed by the new Consumer Contracts Regulations 2013 arising from the provisions of the Consumer Rights Directive 2011, and impending regulation from the FCA covering the financial sector.