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A toll-free , Freecall , Freephone , or 800 number is a special telephone number, in that the called party is charged the cost of the calls by the telephone carrier, instead of the calling party. The cost of the call to the called party is usually based on factors such as the amount of usage the number experiences, the cost of the trunk lines to the facility, and possibly a monthly flat rate service charge. The called party may use a Freephone number because:

They charge the calling party in another way, such as for technical support calls.
They make a sale following the call to the toll-free number.
Sales were enhanced with the inclusion of toll-free support.
Improvement of customer satisfaction by providing free after-sales support in certain products/services.
They want friends and family to be able to contact them without paying long distance.

Early history

Prior to the availability of toll-free numbers, collect calls provided the facility to have the call charged to the receiver. This was introduced as the 'transferred-charge service' in the United Kingdom by the Post Office in 1934. 'Freephone' services appeared in the 1960s, with the Post Office introducing such a facility in 1960. A Toll-free service was also originated on May 2, 1967 by AT&T as an alternative to collect calling and to reduce the need for operators. AT&T referred to the service as IN-WATS, or Inward Wide-Area Telephone Service (see WATS lines). The first company to use toll-free lines hosted numbers for major companies. Americana Hotels, Budget Rent a Car, Hyatt Hotels, Marriott Hotels, Roadway Inns, Sheraton Hotels, and Quality Inn were a few of the major companies hosted. They grew very quickly but still went out of business. When this happened, all the major players reacted by leasing space in and behind that original Call Center location (93rd and Bedford in Omaha, Nebraska) in strip malls so they could continue to answer their toll free calls and also rehire the already trained staffing and management. Northwestern Bell and AT&T dedicated staff to the 'Res City' area and their staff actually had offices located in the same strip malls to help make the transition and service the accounts going forward. That corner of 93rd and Bedford became known as 'Res City' because of all the Call Centers taking reservations there.

As the Call Centers continued to compete for the same talent pool, the larger chains relocated into buildings specifically built for them near the area while others moved outside of the state to avoid the direct competition for staffing.

Northwestern Bell and AT&T continued to cater to the businesses in Omaha and would activate service within 24 hours for clients in Omaha, giving Omaha a major advantage over other locations that would have to wait weeks for service. In 1983, Northwestern Bell and AT&T in conjunction with Telesystems and First Data Resources/WATS Marketing, developed a method to use Direct Inward Dialing (DID) to handle traffic so Call Centers no longer had to have dedicated lines or trunk groups as they are called, to handle each telephone number. This was a major improvement in Call Center call flow design and this type of called number identification is still used by Call Centers today.

Inventor of modern 800 toll-free system

Roy P. Weber (1945-2005) from Bridgewater, New Jersey was the inventor of the second-generation 800 toll-free number system in 1978. Weber's U.S. Patent No. 4,191,860 was filed July 13, 1978 and issued March 4, 1980 and assigned to AT&T. AT&T started to use this new technology from the Weber patent in 1982. Weber's invention was called 'Data Base Communication Call Processing Method' ... more commonly called today a 'Toll-Free Call' or '800 Call'.

Growth of 800 toll-free numbers as a business tool

From 1967 to the AT&T breakup in 1984, AT&T had an absolute monopoly on assigning 800 numbers to subscribing customers. Billing during that period was based on average hours usage per line per month. This type of billing required users to adjust their active lines based on actual peak hour usage to avoid buying hours at higher low tier rates. Usage would average 13-15 cents per minute depending on the traffic being billed.

From 1984 to 1993 Toll-Free customers were locked into a system that wed them to the telephone carrier like AT&T or MCI that assigned them their 800 number. To increase competition, the FCC, in 1991, ordered the implementation of 800-number portability by May 1, 1993. 800 Number Portability means that toll-free numbers are not associated with a particular telephone carrier such as AT&T or MCI. 800 subscribers can switch to another carrier without changing their toll-free number. Before toll-free number portability, toll-free subscribers were locked into their carriers. They could not change those carriers without changing their 800 numbers. Starting in the early 90s, Toll-Free 800 Service became a viable business tool with the use on Vanity Numbers such as 1-800-FLOWERS. With these changes rates have continued to fall and the majority of large users are now buying toll free services for less than 2 cents per minute. Toll Free has become so popular that 800 is no longer the only toll free area code. Area codes 866, 877, 888 were all added to meet the increased demands of the end users.

In 1985, British Telecom in the United Kingdom started using 0800 (Freefone) and 0345 (local-rate) numbers.

Toll-free vanity number for branding & direct response

A toll-free vanity number or mnemonics is a 1-800 telephone number that is easy to remember because it spells something and means something like 1-800-FLOWERS or 1-800-BUSINESS. A great vanity number, being a phoneword, is easier to remember than a numeric phone number such as 1-866-348-7934. Businesses use easy recognizable 1-800 vanity numbers as both a branding and a direct response tool in their advertising (radio, television, print, outdoor, etc.) since they are proven to increase response rates by 30-60%, for example, some attorneys might include the word law in their phone number such as 1-800-LAW-1333, to increase memorability. Vanity numbers like 1-800-FLOWERS and 1-800-PLUMBER are rare and valuable for the company using them in branding and advertising. In 2006 it was reported that AT&T paid over $1.32 million to acquire the Vanity Number 1-800-YELLOWPAGES in combination with the sale of the Domain Name 1800YELLOWPAGES.COM. 1-800-COMPANY transferred for $10 million in 2008. Top tier companies like Fidelity Investments use a similar Telephone Vanity Number (1-800-FIDELITY) and Internet Domain Name (FIDELITY.COM) to match their Business Name (FIDELITY). In Australia, 1800 word numbers little known 5 years ago, have recently transferred for millions of dollars. In developing countries adopting the system, such as Thailand, the prominent international companies such as BMW, NEC, Mercedes, TNT, have acquired numbers however to date, the industry is yet to be realized.

North America

Toll-free numbers in the North American Numbering Plan (NANP) are sometimes called " One-800 numbers " after the original area code which was used to dial them. They include the area codes 800 since 1967, 888 (since 1996), 877 (since 1998), and 866 (since 2000). Area codes reserved for future expansion include 855 , 844 , 833 , 822 , 880 through 887 , and 889 .

Some regular area codes may be deceptively similar to toll-free prefixes, such as 801 (Salt Lake City, Utah), 860 (eastern and northwestern Connecticut), 843 (Coastal South Carolina), 814 (western and central Pennsylvania), 856 (southern New Jersey), 808 (Hawaii), 845 (Hudson Valley and Catskill Mountains,New York) and 818 (Los Angeles, California). This similarity has also been exploited by fraudsters in international locations that can be direct dialed with what appear at first glance to be domestic area codes such as 809 (Dominican Republic). Toll-free numbers are also sometimes confused with 900 -numbers, for which the telephone company bills the callers at rates far in excess of long-distance service rates for services such as recorded information or live chat.

The toll-free numbers can only be called from certain phone numbers, depending upon the preferences of the customer (and sometimes the provider) who has the phone numbers. The default is that these numbers are available from any phone in Canada or the USA. However, many US toll-free numbers cannot be accessed from Canada, and many Canadian toll-free numbers cannot be accessed from the USA. Some are not accessible from pay phones (which the provider passes as an ANI code). Calls from payphones assess the toll free owner an additional fee in the USA as mandated by the FCC. Although toll-free numbers are not accessible internationally, many phone services actually call through the USA, and in this case the toll-free numbers become available. Examples of these services are the MCI Worldphone international calling card and Vonage internet telephone. However, many calling card services charge their own fee when their toll-free numbers are used to make calls, or when their toll-free numbers are used

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