Cheap Call Supplier 18866 are claiming that calls to this cheap intl  call service cost 5p a minute from a mobile.

No mobile supplier in the UK charges as little as 5p to call a 0844 number. This is the rate to call it from a BT Landline . Also no mention is made of a connection charge,

http://www.call18866.co.uk/0844.php

They do say in small print check cost of call with your supplier.

Quote:

New: Cheap (international) calls from your Mobile! Register your mobile number and dial 0844 566 12 12 (5p/min*) to make cheap calls from your mobile! How? First, you need to register your details and mobile number(s) (see below). Once you are registered and you would like to make an international call, just dial 0844 566 12 12 (5p/min*), followed by the international number to get connected. That’s all. Call charges You pay 5p per minute to the 0844 number (charged by your mobile provider) + the charges of the destination you wish to call (charged by Call18866 to your credit or debit card). For example to make a call to India: When you make a call you will hear 2 tariff messages, once the 5p/min for the mobile charges and after entering the international number the operator will inform you how much the international leg of the call is per minute. Dial 0844 566 12 12: on connection you will hear a 5p/min rate message. Now enter the telephone number you would like to call. The operator will inform you that calls to India are charged at 3p/min. Therefore calls to India are being charged at: 5p + 3p = 8p per minute. Compare that with a direct call to India via a random major mobile operator.

http://www.call18866.co.uk/0844.php

The above is a complete misrepresentation of the situation, not only in how much the caller will pay, but in who benefits financially from the various parts of whatever is paid for the call.

The true cost of a call is:
* 7p/min Service Charge to the benefit of Call18866, built into 0844 call price
* markup of up to 34p/min to the benefit of the mobile operator, built into the 0844 call price
* a further advised per-minute fee paid directly to Call18866 by credit or debit card.
The first two items are not separately advertised. They are currently shown only as a single combined or "bundled" charge on the caller's telephone bill.

The example call to India actually costs:
* 41p + 3p = 44p/min from Virgin Mobile
* 40p + 3p = 43p/min from T-Mobile
* 36p + 3p = 39p/min from Vodafone
* 35p + 3p = 38p/min from Orange
* 35p + 3p = 38p/min from 3
* 20.4p + 3p = 23.4p/min from O₂.

This is three to more than five times higher than the example call price given by Call18866.

Additionally, the misrepresentation makes it appear that Call18866 gains only from the fee they charge directly to the caller's credit or debit card. In fact, they also benefit from a 7p/min Service Charge hidden within the 0844 call price. This fee, or "premium", is collected by the caller's telephone network and passed on to Call18866.

For the India example, Call18866 therefore benefits to the tune of 7p + 3p = 10p/min.

Mobile operators gain anything from 13p to 34p/min; their markup is added on top of the 7p/min Service Charge.

The Service Charge and the mobile operator's markup are not currently declared as separate fees. Ofcom's "unbundled tariffs" system will shortly reveal the details of these charges more clearly.