Facts About The Premium Rate Business

When you own a premium rate number the profits are made in accordance to the number of calls your lines receive. As a premium rate operator you will be able to promote your premium rate numbers in many different ways. A service bureau answers the calls 24 Hours a Day 7 days week, so you'll never need to stay by the phone or buy expensive equipment. Service Bureaus keep track of your premium rate calls, and you pay them a small portion of the cost per minute to cover their telephone costs and expenses.

The Ideal Cash Generating Business:

Premium rate numbers were first created in the USA 1980 for ABC Television during the Reagan/Carter debates. The premium rate numbers totalled over 500,000 calls during the debate.

Premium rate numbers for informational use came in 1982 when NASA started an informational line for the space shuttle flights. Soon after, national companies realized the incredible opportunities in premium rate numbers.

In 1987, (after the privatisation of British Telecom) premium rate  numbers were introduced to the UK. This meant that anyone, anywhere could provide information regardless of the location. Many premium rate services for different topics began to spring up. At that point the premium rate number business took off.

Today, you can come across hundreds of premium rate numbers in daily newspapers, magazines, and the Internet. The cost of premium rate lines have become affordable enough for anyone to take advantage of!

Premium Rate Numbers: Terms and Definitions

Premium Rate Number

A premium pay-per-call prefix set by the telecommunications carrier in conjunction with OFCOM, specifically used for content and programs.

Activation

Establishment of account, set-up of premium rate lines, which includes installation of daily call tracking and pay ready system.

Call Count

total number of calls received by a premium rate number.

Call Count Volume

volume in minutes for any given period. (ie: 7 calls per day @ 6 minutes each = 42 minutes X 30 days = 1260 minutes)

Call Count Revenue

total revenue generated by call count volume.

Information provider

The "owner" of a premium rate service, who is in the business of providing information for business, personal or entertainment purposes.

Programs

the content or material presented on a premium rate service.

Service Bureau

An entity which is accredited by one of the major telephone carries (for example, British telecom or Cable and Wireless) to process, program, and sell premium rate numbers. The carrier pays the service bureau for call count revenue, and in turn the service bureau remits payment to the I.P.'s on a monthly basis.

Telco

any federally accredited telecommunications carrier which also bills consumers for premium rate activity.

Turnkey

Ready for business, with no need to provide equipment, staffing, or other expenses.