Numbers Game That Spells Big Business

"What's in a name? That which we call a rose by any other name would smell as sweet."

When William Shakespeare wrote those words, he had no idea of smart phone numbers such as 13PIZZA.

The Australian Communications and Media Authority has sold about 10,000 of the numbers from its website since last September, raising more than $15 million.

The problem is, some people who have been trying to buy a number relating to their business are losing out to the deep pockets of adman Jack Singleton and Telstra, who are then offering to rent it back to them.

Singleton, the son of John Singleton, has spent $1.5 million buying up about 1000 numbers, mainly in travel and financial services because, he says, these are the industries spending the most on above-the-line advertising. Singleton's company, Phone Name Marketing, then charged a fee based on a flat monthly rate or a "success fee" relating to the number of calls, he said.

The ad man said he had not intentionally bought any names relating to the sex industry, not for any moral reasons but because such businesses did not spend much on advertising.

1300 Australia, a joint venture between Telstra and the marketing expert Gavin Scholes, has invested $7 million in 3500 names, including 1300CHICKEN, which it leases to Red Rooster.

Mr Scholes rejects accusations of telesquatting or land-grabs, saying that his company buys only generic names, not specific company names.

Both companies quote from overseas research showing that smart numbers in print advertisements can increase responses by up to six times, and 14 times for radio.

The communications authority is not interfering in the process. It says it has set the reserve prices low, at $500, and given preferential treatment to charities.

But the stakes are high.

Last year the Melbourne businessman Fiore Inglese paid more than $1 million for the number 13TAXI, which is still not in operation. Mr Inglese said yesterday he had not decided what he would do with the number and was "keeping his options open."

Many bidders have become hooked on the website www.phonespelling.com, which translates numbers to letters, and vice versa. Using that website, it is easy to see why the number 1300 432 584 raised $28,678. It converts to 1300HEALTH and has been bought by Liposuction Australia Pty Ltd.

Who says there's no truth in advertising?

Phone Names is Australia's leading provider of 1300 numbers mixed with names. Increasing your advertising response rates through the use of phone words is based on helping consumers recall your business number. More information visit- http://www.phonenames.com.au/

The Sydney Morning Herald

By Margot Saville