loddon wrote on Apr 3
rd, 2013 at 9:46am:
Can you explain please …
There are many circumstances under which a
premium charge may be incurred when using the telephone, e.g. exceeding a limited bundled allowance, making a Weekday call under the terms of a Weekend only Call Plan. Premiums are also incurred when calling numbers not covered by a Call Plan or bundle (e.g. mobiles from a landline).
That referred to by Dave was the premium that is invariably incurred when calling a 0844 number because of the additional Termination Fee paid on to the benefit of the person called. This is always in place, regardless of other possible premiums imposed by the telephone company. Under the forthcoming Ofcom regulations this will have to be declared, it will be known as the
Service Charge.
The premium
Access Charge which may be incurred is consequential on there being a Service Charge. Many campaigners stress the fact that the Service Charge will have to be declared in the hope that those who are unable to justify imposing a charge for the call, by their choice of number that includes a Service Charge, will feel compelled to relieve callers of
all premiums other than those which may be incurred in calling a geographic rate number. This is the essence of SayNoTo0870. As numbers that include a Service Charge will continue to be permitted, pressure must be applied to discourage their use.
It is for this reason that great emphasis is placed on the Service Charge, which will remain largely unchanged as we move into the "Unbundled Tariff" regime. Simplification, transparency and removal of the special regulation of BT will cause the "Access Charge" to be very different under the new regime to what it is at present. For now, it is simply defined as being the remainder of the total call cost after the Service Charge has been removed. In some cases this makes it negative! We have not yet had any clear indications of what individual telephone companies will be doing with it in future.
Some argue that the "Access Charge" and the rate for calling geographic numbers should be equalised, so that the "Service Charge" represents the only premium over the cost of calling a geographic number in all cases. The fair telecoms campaign takes the view that those who choose not to call numbers with "Service Charges" should not be compelled to subsidise such calls by paying the same rate to the originating telephone company. Equally, we do not believe that Access Charges should be pegged to "penalty charges" for Out of Plan calls to geographic rate numbers.
We foresee many changes with landline package arrangements in the medium term, most notably the inclusion of unlimited calls to mobiles. We are content to wait to see what the market delivers and will press Ofcom to intervene should any clear unfairness be seen. The issue of what must and what may be included in bundles will be addressed at length in the forthcoming Ofcom consultation on Simplifying Non-Geographic Numbers.
The imperative issue is that the Access Charge be kept simple, so that the greatest possible number of callers will know what it is at the time when they consider making a call on which it will be incurred.
The
connection charge (or "call setup fee"), on calls that are otherwise charged by duration, has an uncertain future. We wait to see if Ofcom will be proceeding with its intention to abolish it. If it remains, it will become part of the "Access Charge", exclusively to the benefit of the call originating telephone company. At present, it could be said to be part of the Service Charge, however with a simpler future in prospect, due to be outlined shortly, it may be best not to go too deep into this at this time.