Is it good to talk? Line rental prices keep rising

Termination rates for calls to 01 and 02 landline numbers are around 0.21p per minute.

More than a decade ago, termination rates for calls to mobile numbers were at least 20p per minute. Since then, they have been steadily falling. Ofcom intervened in the market a few years ago and forced an accelerated reduction. Termination rates for calls to mobile numbers are now around 0.85p per minute and will be subject to a further small reduction in April 2015.

Termination rates for 03 numbers appear to be around 0.56p per minute on weekday daytimes, and around 0.26p per minute during weekday evenings and at all times during weekends.

The difference between the termination rates for 03 numbers and those for geographic 01 and 02 numbers is at least partly due to the fact that calls to geographic numbers have far-end handover and calls to non-geographic numbers generally have near-end handover.

The termination rate for calls to 03 numbers may be higher but the near-end handover means the transit costs for the originator are lower. Likewise, the termination rate for calls to 01 and 02 numbers may be lower but the far-end handover means the transit costs for the originator are higher. In the end, there’s probably not all that much difference in the overall costs of call origination for each.

The termination rate for calls to mobile numbers is four times that of calls to geographic numbers and yet mobile operators manage to offer large call allowances, even unlimited calls, to both landline and mobile numbers.

The ongoing scandal is that landline operators still massively overcharge for calls to mobile numbers. For example, Virgin Media still charge up to 31p per minute. BT’s best rate (on Home Phone Saver) is still as much as 6p per minute.

With the termination rate for calls to mobile numbers now around 0.84p per minute, landline operators should be able offer a reasonable number of inclusive calls to mobile numbers in their monthly call allowances. The next reduction in the mobile termination rate is scheduled for April 2015 and should bring that reality much closer.

Alongside the inflated cost of calling mobile numbers from landlines, nowhere is retail price manipulation more obvious than in the illogical inclusion of calls to 0845 numbers within some of the call packages offered by several landline providers. The Enhanced Termination Rate for calls to 0845 numbers is currently around 1.6p per minute – almost double the Mobile Termination Rate.

The cost of telecoms has plummeted in the last decade. We no longer pay for individual calls to 01, 02 and 03 numbers. Most people call these within the allowances of an inclusive call package on their landline or on their mobile. By now, the same should also apply to calls to mobile numbers from landines.

The “unbundled tariff” will reveal the realities of 084, 087, 09 and 118 call pricing. With the Service Charge exposed and separately declared for what it is, this new found transparency should bring an end to inclusive 0845 and 0870 calls – especially as the Service Charge for 084 numbers will be allowed to be as much as 7p per minute including VAT.

This, coupled with the forthcoming small reduction in MTR should be the moment that inclusive calls to mobile numbers from landlines finally becomes a reality.

Re: “This … should be the moment that inclusive calls to mobile numbers from landlines finally becomes a reality.”

TalkTalk now offers unlimited calls to both landline and mobile numbers on their “anytime” call plan.

If Sky and one or two others do the same, the rest will surely follow.

In April 2015 there will be another small reduction in the Mobile Termination Rate.

June 2015 presents an obvious opportunity to stop offering inclusive calls to 0845 and 0870 numbers, and replace these with inclusive calls to mobile numbers.

0845 numbers are inclusive calls on many networks. Why wouldn’t they be? When will other networks start including them?

Following years of complaints about the high cost of calling customer service lines on 0870 and other non-geographic numbers, Ofcom suspended revenue sharing on 0870 numbers on 1 August 2009. Most landline providers, including BT, made these calls inclusive in their call plans. However, consumers gained nothing because most users of 0870 numbers simply swapped to new 0844 or 0871 numbers in order to continue receiving revenue share payments. Additionally, most mobile providers did not drop their 0870 call prices.

At the same time, BT incorrectly anticipated that Ofcom was about to suspend revenue sharing on 0845 numbers. BT therefore decided to also make 0845 calls inclusive in their call plans. Calls to all 084, most 087 (not 0870 at present) and all 09 numbers incur a Service Charge paid to the joint benefit of the called party and their telecoms provider. Where 0845 calls are made inclusive, all call plan subscribers are contributing to those payments whether they call these numbers or not.

Ofcom quickly realised that the changes to 0870 numbers had been a failure and did not proceed with any changes to 0845 numbers. This left BT with a problem. They now had to pay out Service Charge without collecting revenue for each call, a situation that still prevails more than five years later.

On 26 June 2015, 0870 calls will once again return to revenue sharing and all users of 084, 087 and 09 numbers will be required to declare their Service Charge wherever their number is advertised. This will confirm all 084, 087 and 09 numbers as being expensive and will be an ideal time for BT and other providers to stop offering inclusive calls to 0845 and 0870 numbers.

Those users who are unable to justify the imposition of a Service Charge on callers should change their number to one which does not impose it. For those who need just such a non-geographic number, Ofcom made replacement 03 numbers available in 2007. These are inclusive calls from landlines and from mobiles. Take up of these numbers has been slow until the last couple of years.

Recent regulation covers post sales lines for retailers, traders and passenger transport companies and requires them to use 01, 02, 03 or 080 numbers in place of 084, 087 and 09 numbers. Cabinet Office guidance mandates similar terms for government departments and agencies. The FCA will, very belatedly, eventually introduce similar regulation for the financial sector.

Thus, all these changes will largely return 084 and 087 numbers to usage only by those offering a genuine chargeable service. It is only right and proper that only those people who call these numbers should be paying those Service Charges, therefore these calls should not be inclusive in call plans.

With most retailers, traders, passenger transport companies, government departments and agencies, banks and insurance companies now abandoning 0845 and 0870 numbers en masse, you’ll soon have no need to phone these numbers.

When inclusive calls from landlines to 0845 and 0870 numbers are dropped, you’ll not miss them. Calls to the replacement 0345 and 0370 numbers have been inclusive both from landlines and from mobiles since 2007.

The “lines” which we “rent” have been paid for decades ago when installed. Yet we still pay for them on a “monthly” basis…month by month… year by year….FOREVER! The actual piece of fibre optic line costs LESS than that. The govt should step in on this ENDLESS scam by BT (and the rebranded 3rd party companies) and end this RENTAL scam.