As from May 1st 2009 Virgin Media intend to increase charges to 0844 numbers by 2p per minute

A 1 minute call will then be 8p plus a connection fee of 9p = 17p (Minimum charge)
and then 8p per minute thereafter.

2 minutes 25p
3 minutes 33p
4 minutes 41p

and so on...

What?  For ALL 0844 numbers?  What a rip-off!

A good case for getting a BT line then.  Their call set-up fee is 'only' 8p and they charge the proper prices for calling 0844 numbers (either ½p, 1p, 2p, 3p, 4p or 5p per minute depending on the 5th, 6th, 7th and, sometimes, 8th digits).

The figures given above have been confirmed for call type "PG6", the VM equivalent of BT "g6".

I understand that the full details will be published generally in mid-April. Letters are being sent to VM customers at present. The billing enquiries teams are able to deal with any specific questions, but have no further information to send out at this stage.

The implications for patients of NHS GPs using Surgery Line are noted. Apparently VM provides landlines to just under 20% of the residential market, so this is serious for a significant proportion of patients of many practices. As cable service is not evenly distributed across the country, the proportion will be higher in some areas.

The other important point to note is that the VM changes do NOT include following BT in respect of 0845 and 0870. The rates and basis for these calls are unchanged.

Heinz wrote on Mar 26^th, 2009 at 4:42pm:

What?  For ALL 0844 numbers?  What a rip-off! A good case for getting a BT line then.  .

The problem there is that a lot of Virgin Media's services are based on the take-up of their phone service.
Ditching VM's phone would lead to a substantial increase in those other services.

Virgin Media has increased these charges from 1 April. Full information on its call charges at:

www.virginmedia.com/callcosts


The call connection fee is 7.82 pence for most calls. Some premium numbers have higher connection fees.

The 0844 numbers used by GPs are now 6.84 pence per minute at all times from Virgin Media rounded up to the next whole minute.

VM are now charging 12.24p +VAT connection charge and 6.12p per minute thereafter.

JoeCurry wrote on Feb 1^st, 2011 at 2:02pm:

VM are now charging 12.24p +VAT connection charge and 6.12p per minute thereafter.

Yes, and they charge an outrageous 10.41p per minute for what used to be the (maximum price) 5p per minute 0844 numbers like GPs' surgeries use.  

BT put their prices up for those calls from 5p to 5.105p per minute to take account of the VAT increase but Virgin developed their own  elevated pricing structure some time ago.

Heinz wrote on Feb 1^st, 2011 at 8:38pm:

JoeCurry wrote on Feb 1st, 2011 at 2:02pm: VM are now charging 12.24p +VAT connection charge and 6.12p per minute thereafter. Yes, and they charge an outrageous 10.41p per minute for what used to be the (maximum price) 5p per minute 0844 numbers like GPs' surgeries use.   BT put their prices up for those calls from 5p to 5.105p per minute to take account of the VAT increase but Virgin developed their own  elevated pricing structure some time ago.

With BT that is also plus 11.50p call set up fee!

But I agree VM just have pricing of their own!

It is important to understand the difference between VM and BT.

BT is unique in being regulated as to what it may charge for calls to all 08 and 09 numbers.

All call originators have to pay on increased termination fees when placing calls to 0844 (maximum around 4.5p per minute) and 0845 (maximum around 1.7p per minute) numbers. The same applies to all other ranges (with 080 the termination fees are negative).

The regulation on BT effectively prevents it from actually making any money on these calls, whereas its rates for geographic calls (and its "call setup fee") are not regulated.

N.B. This is not a defence of what VM charges - it simply explains why it is different from BT.

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For a non-inclusive daytime geo call, the VM charge is 12.24p + 8.68p per minute, as against BT's 11.5p + 7p per minute. The gap has narrowed slightly from 4 January because BT increased these charges by over 9%, rather than the 2.13% due to the VAT change, which is all that VM applied to all of its charges, as was also applied to the regulated BT rates.

VM's addition of 1.54p per minute to give a rate of 10.22p per minute for 0845 calls is roughly in line with the increased cost it incurs in placing calls to 0845 numbers. (For some odd reason VM offers a lower call connection fee of 11.24p for 0845 calls. 12.24p applies otherwise.)

With 0844 numbers, VM does not add the increased cost it incurs to the actual geographic rate it charges. For the various 0844 "call types" its rates are generally around 4p per minute (not 8.68p) above the BT rates. For the commonly used and most expensive g6 rate this is however over 5p per minute more.

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If the Ofcom proposal for "unbundling" and the removal of the restrictions on BT come into effect then we will see all the rates for what they truly are.

In the meantime, without the confusion caused by the odd BT situation, VM does actually provide a clearer view of what should be expected to happen when people choose to adopt "Business Rate" 084 numbers. Whilst there may be much to criticise, VM cannot be blamed for simply passing on its costs to its customers.

N.B. I have not addressed the marketing issues, including the use of packages.