1800 Number Cost
Over 300,000 Australian businesses use 1800 numbers.
That’s because they are good for business. But how much does a 1800 number cost to own or call?
Keep reading to find out more about...
The cost to call a 1800 number
1800 number plans - a comparison
1800 Phoneword costs
Read on to discover all that you need to know about 1800 number costs.
For 1800 owners
Keep reading to learn about the costs of buying and owning a business 1800 number.
For 1800 callers
Understand the costs associated with making calls to a 1800 number.
How much does a 1800 number cost?
To understand the pricing structures for the majority of 1800 service providers you need to consider 3 main components of a typical 1800 number plan.
The purchase price
There are multiple 1800 number service providers from which to purchase a 1800 number for your business. The majority of these will offer you a 1800 from a pool hosted on their network. The cost of purchasing your new 1800 business number will either be factored into your overall monthly plan cost, or you will be charged an additional fee.
The cost of a 1800 number is directly linked to its desirability. Obviously, the higher the quality of the number, the more it will cost. For example, 1800 numbers that spell out a word when typed into a telephone keypad, or those that feature easy to remember number sequences, are the most in demand 1800 numbers.
Monthly hosting fees
In order to start receiving incoming calls, your new 1800 business number needs to be connected to a network. This is where the service provider’s ‘hosting’ fee comes in. The hosting fee covers the cost of diverting incoming 1800 calls to your designated answerpoint (establish landline, mobile phone number or VoIP).
Some providers might want to charge you additionally for such things as routing your incoming calls or for other bonus features (such as included call minutes). However, this is an outdated pricing structure, and these 1800 number providers are best avoided.
Incoming call charges
Ultimately, 1800 numbers are a diversion service. This means that as the owner of the 1800 business number, you pay to receive a call that is diverted from your 1800 to your receiving answerpoint. That is unless you choose a smart 1800 number plan that features $0 call rates.
Different 1800 providers offer different pricing plans. Typically all 1800 number plans are just a variation of what is known as the “source/destination” pricing model. This model has different charges based on...
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The caller's location
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Device type (landline or mobile) used to make the call
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Device type (landline or mobile) used to receive/answer the call
Other 1800 costs
Three other costs to keep in mind when deciding whether to purchase a 1800 business number...
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Setup fees
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Fees to switch features on/off
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Change fees if you want to update your 1800 number configuration
The majority of 1800 number providers charge a one-off setup fee. Typically this is no more than $25. However, some providers may charge a higher setup fee if you are using a more complex routing structure (such as location-based routing). Some providers will charge extra to switch on (or off) different features such as: IVR, voicemail, data reporting and analysis, and diversion to multiple phone numbers. Obviously this can then become expensive for your business.
That is why it is always recommended to buy a 1800 number plan with all features included in the monthly fee, like with Telephonic.
1800 Phoneword costs
Phonewords are 1800 numbers that spell out a word when typed into a phone keypad, or those that feature easy to remember sequence of digits. Examples of Phonewords are 1800 LAWYER and 1800 123 123.
It's important to remember that the studies that some providers reference to suggest that a Phoneword will boost your sales by x% or that they are easier to dial were conducted over 20 years ago, when Smartphones didn't exist and people actually remembered a phone number. So don't feel pressured to pay extra to buy an expensive Phoneword!
The Government maintains the largest database of 1800 Phonewords available in Australia. However, businesses purchase a 1800 number directly from service providers like Telephonic. This is usually a good option because the number will already be active on the provider’s network.
When comparing costs, it is important to note that Phonewords come with a government-mandated purchase price, whereas regular 1800 numbers do not. It is the Government that mandates the purchase price of a 1800 Phoneword which can cost anywhere from $400 to $20,000.
The good news is that the vast majority of Phoneword purchase prices fall into the lowest pricing tier of $400. And whilst the most popular Phonewords have been in use by businesses for decades (like 1800 GARDEN), with hundreds of thousands of number combinations still available you can find one to suit your business.
Ready to get a 1800 number?
Who pays for a 1800 call?
There are two separate cost components charged per 1800 call...
The amount the 1800 number owner pays to receive each call is determined by the 1800 plan that they have signed up to.
Callers will never pay a fee when ringing a 1800 number from any phone within Australia, whether it's a landline or mobile, satellite phone or even a phonebox.
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Charges levied to the owner (or receiver) of the 1800 number call based on their device
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Charges levied to the owner of the 1800 number call based on the length of call
How 1800 number call costs are calculated
Costs to receive an incoming call to a 1800 business number varies from provider to provider.
Most providers charge calls received based on a per-minute. However, it also depends on the type of each call received. The “source/destination” charging model features different rates based on...
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The caller's location
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Type of device (landline or mobile) used to make the call
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Type of device (landline or mobile) used to answer the call
The cost of the call may also vary according to...
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Peak/off-peak times
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Connection costs
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Use of extra features
The cost of receiving an incoming call to your 1800 business number is dictated by your provider’s plan. That’s why it’s important when comparing plans that you look closely at the call rates. As this is what can end up costing your business a lot of money.
Looking for a specific number?
What about hidden fees?
Buried deep within some providers’ Critical Information Summaries (CIS) are their plan’s ‘hidden’ fees.
The white box here is a quote from the TIO's website about the types of complaints they typically receive. As evidenced, it's usually about unexpected charges.
The best advice is to always check the Critical Information Summary (CIS) for any 1800 number plan you are considering. A note of caution: some providers will merely provide links to their additional fees, rather than laying out them out in plain English within the CIS.
High and disputed charges
The TIO can help with complaints about charges and rates that you didn't agree to, as well as complaints about excess usage charges and administrative fees that you think are too high.
Types of complaints about charges
The TIO deals with complaints about issues such as consumers being charged...
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At different rates than they agreed to
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High administrative or miscallaneous fees
A guide to compare 1800 number plans
Comparing 1800 number plans can be a bit of a challenge because of the multitude of service providers in Australia. And it doesn’t help that each provider has slightly different pricing plans. Always check different the CIS of the different plans you are researching.
Critical Information Summaries ("CIS") were introduced by the TIO to remove confusion about what exactly each 1800 number provider is offering. By law, every telco is required to provide a CIS to customers on their website that sets out very specific information in a specific format.
Considering 1800 costs
It’s important to ask the following questions when comparing the cost of 1800 number plans...
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How much is the setup fee? You really shouldn't be paying more than $25!
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How much is the monthly hosting fee?
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What are the call rates?
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How are the call rates calculated and charged? Remember, call costs will be higher if the provider charges in ten-second increments, rather than in per-second increments, and if per-call flagfall charge is levied.
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How much does it cost to change your 1800 number’s configuration? Preferably, you want to be able to make changes to your 1800 number setup free of charge via an online portal
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Even if there's no contract, does the provider charge an early exit penalty?
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Are there credit card processing fees?
As you can see, there's lots of ways for telcos to hide additional fees that you might not have considered. The best advice you should take away after reading all about 1800 number costs is to make sure you read the legally-mandated CIS thoroughly before buying!
How to call a 1800 number
Calling a 1800 number allows you to connect with businesses all over Australia.
But exactly how much does it cost to call a 1800 number? Read on to find out...
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How 1800 call costs work
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1800 call costs
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How much you'll pay to ring a 1800 number
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How much a caller be charged to ring a 1800 number
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Costs to ring a 1800 number from overseas
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Comparing 1300 vs 1800 call costs
How 1800 call costs work
The cost to dial a 1800 number is determined by your telephone service provider. Callers will only pay a small standard fee of 25-40 cents when dialling a 1800 number from a landline. However, most phone calls are made from mobile phone these days and almost all mobile plans include unlimited calls to 1800 numbers.
Alternatively, 1800 business number owners may be charged different rates based on where you as a customer are calling from. The amount they pay per incoming call depends on the specific plan that their 1800 number is connected to. This does not impact the amount you as a caller are charged to make the call.
How much will 1800 callers be charged?
As a customer calling a 1800 number, the cost of your call is determined by your own telephone service provider. As a general principle...
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Calls are charged at a flat rate (i.e. not time-based)
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The call rate is generally 25-40 cents per call
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Call rates don't vary based on your location, or device
With the prevalence of “all included” mobile phone plans, we find that the majority of 1800 number callers don’t pay to ring a 1800 number.
Ringing a 1800 number from overseas
If you are dialling an Australian 1800 number from overseas, the cost to place this call will vary based on your telephone service provider, and you may be charged international call rates.
1300 vs. 1800 number call costs
It is always free to call a 1800 number from anywhere in Australia. In 2021, the majority of phone service providers also include calls to 1800 numbers in their plans at no extra cost. Though it pays to check your plan as this can vary from provider to provider (particularly for those on a Telstra plan).
How can I find out more?
Get in touch with your current phone provider. Furthermore, you may be able to find the information you need in the CIS that you received when you signed up. Alternatively, the information might be available on your service provider’s website.