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Tight Wads (Read 10,998 times)
Tungata
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Tight Wads
Jan 28th, 2005 at 10:20am
 
Well as a new member I thought I'd put the cat amongst the pidgeons.

Why do you complain to the person / company providing the service ? Why don't you complain to your telco about the amount they charge to dial 08xx numbers ?

Fundamentally it all comes back to money, however I feel that many people writing on this site underestimate the cost to a business of funding and managing a large call centre environment.

I believe many people have also missed that customer service is crucial, and to enhance your service levels it is necessary to use Intelligent networks to handle traffic dynamically to maximise your opportunity to speak with a person. Whilst at the same time reducing cost to the business.

Now, I've seen that the DVLA is coming in for a lot of flak (disclaimer ; I have not and do not work for the DVLA) and on one of the messages somebody indicated that the estimate was £2m pa income from 0870, at best a guess I suspect.

However lets work on the principle that £2m is correct, that the money doesn't go in to the Chief execs holiday fund, it is put back in to the business. To help pay for the equipment and people with whom you deal. Now if that money wasn't coming in would you be happy to try and get through to 50% less agents with out dated telephone systems and perhaps only having a 1% chance of speaking with someone ?  I guess you'd say that as a government department the funding should come from central government, well I guess the question should be asked 'why should those people not wishing to speak with DVLA support the cost of you calling through additional taxes'. Likewise this arguement applies to all business, why should I pay additional bank charges to help fund people phoning the call centre when I do all my banking on the Internet ?

The arguement about international access could be turned on it's head, go whinge to the overseas telco's, it's not exactly difficult to open up the gateways. The tier one players in this country send out notifications to overseas administrations requesting access is opened on new number ranges, some of them do and others don't ... why ? Money, it's not profitable enough.

Well I've said enough for now other than my closing line for today : There is no such thing as a free lunch and I'll be dammed if I'm paying for yours. You want to use a service you pay for it, if you didn't drive you wouldn't ever need to call the DVLA. There's your solution saving about 20p on your telephone bill and £tens of thousands on fuels, Insurance, purchasing a vehicle etc etc and to boot you are doing something really useful like saving the planet from more CO2 emmisions.

Kiss
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Tanllan
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Re: Tight Wads
Reply #1 - Jan 28th, 2005 at 12:04pm
 
One response might be that there are no controls on this hidden subsidy. Applying the correct (well, less feeble) controls on the 09 range would go some way towards addressing transparency and quality control. ICSTIS do do some of that.

I quite accept the point about paying for an unused service - I did not want number portability, but still had to contribute to the BT upgrades - so 09 would at least be open.

ps   listen to Radio 4 You and Yours 12 noon Friday 28.
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RBJ
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Re: Tight Wads
Reply #2 - Jan 28th, 2005 at 1:26pm
 
I couldn't disagree with you more strongly. Of course commercial organisations have to make a profit. Of course government departments should be run efficiently.

But both of these tasks are difficult, particularly in a low inflation enviromment. Price/Tax rises are very hard to implement. Increasingly organisations try to achieve their goals by stealth with the explosion of 0870/0845 use being a prime example.

I believe the whole marketing strategy behind 0870 is based on stealth. No rational consumer is going to choose to pay 4-5 times the per minute cost of a call. BT chose not to compete or to develop wonderful products that people would pay for. Instead they reasoned that if they could not force consumers to pay high rates directly they would do so indirectly by kicking back something to organisations called by consumers.

Increasingly we see 0870 justified by saying that this merely covers the cost of the call centre. (DVLC, Barclays Bank)  This is complete nonsense. I run a retail business. I display the price of my goods and that is what my customer pays. That's it! Nothing else. What you see is what you pay. My price includes my overhead including telephone costs. If businesses wish to encourage efficient cost effective channels they can do it through differential pricing but then they have to indicate the price up front which they do not with 0870. A smart company would focus more closely on why people call and try to limit the need for people to call them.

I would not dream of trying to charge my customers for talking to me. Nor would I charge them for walking into the shop or for a carry bag or for a portion of the light bill.

If I put a price on my goods and then charged more for them because the customer talked to me I would probably be acting illegally and would lose customers rapidly. If I then charged customers even more because of the time they queued to pay for their purchase I would lose them even more rapidly. Then if they came back with a faulty product or to ascertain how something worked and I charged them even more money I would close pretty quickly. Yet this is exactly what organisations using 0870/0845 are doing. Furthermore the amount of the extra charge cannot be ascertained by the consumer until after it has been levied. Might be 10p might be £2.00.

Consider obtaining a credit report. Parliament limited the charge to £2.00. Some time ago (before I woke up to the 0870 scam) I held on for 20 minutes on 00870 to get my report. Thus costing me twice what parliament had intended.

No point complaining to BT. They are there to make money out of phone calls. The real problem is that the regulator allows 0870/0845 to exist outside the Ictis umbrella.

P.S. More excellent exposure on you and yours today.
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Say No! To 0870.
 
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Dave
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Re: Tight Wads
Reply #3 - Jan 28th, 2005 at 1:57pm
 
Tungata, as you acknowledge, the amount paid in revenue is coppers compared to what it costs to run a call centre. But the call centre should be entirely funded by the tax payer (in the case of DVLA etc) or the policy premium (in the case of insurance companies/banks etc).

You ask why should you pay for other people phoning up? That contradicts what you said about the revenue not paying enough to run a call centre!

The other point which you miss is the fact that these numbers stiffle competition within the telephone industry. On the one hand they sell 'discount' packages and on the other they sell NGNs which are exempt. How is this fair?

A telephone call should be just that; the price of a normal call. Finally, current 084/087 numbers are deceiving customers who are not aware premiums are paid.

Quote:
... BT chose not to compete or to develop wonderful products that people would pay for. Instead they reasoned that if they could not force consumers to pay high rates directly they would do so indirectly by kicking back something to organisations called by consumers.

I agree with most of what you say RBJ, but I have to disagree with you strongly here. The extra premiums paid by callers support the telco providing the NGN. In many cases this is not BT. The competition introduced into this market (do a search on the internet for NGN providers) has been introduced at the expense of the citizen-consumer. Take a look at Numbers administered by Ofcom to see for yourself.

BT must compete like every other telco. It seems that many people miss the fact that BT's dominant position is due to the fact that it was a public owned utility and not because it has aquired such power by some sort of deception.

If you were BT, would you be happy to let competition into the market? The blame has to be laid firmly at Oftel/Ofcom's door as they are the ones who are introducing the competition. All the telcos are playing by the same 'disceiving' rules, and to single out BT is completely unfair. The mess must be laid at Ofcom's door.
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dorf
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Re: Tight Wads
Reply #4 - Jan 28th, 2005 at 3:06pm
 
Tungata seems to have no understanding whatsoever of the problem. We as consumers and customers did not want Call Centres in the first place! We prefer it the way it used to be when employees of companies who were actually working on the problem or issue were the ones we spoke to, when we telephone any company or organisation. In those days the employees actually understood what we were discussing. Now, Call Centre operators no longer properly understand the issue or problem. That is also another reason why the telephone calls are longer!

Call Centres were introduced purely for the benefit of companies and organisations, who thought (in most cases wrongly apart from the revenue now taken from customers via NGNs) that they would save them money. In many cases Call Centres are even factored out and the person answering and attempting to deal with the issue or problem does not even work for the company or organisation concerned. It is no wonder therefore that they do not understand the issue or problem, and even after the expensive telephone call there is no proper resolution!

So, you are quite wrong. Most consumers and customers do not like Call Centres at all. They would be much happier if they were all closed, never to return. Give us people who actually know the products, services, issues and problems, and work at the sharp end. To claim that Call Centres are expensive to run is perfectly ludicrous. Save the money by closing them and saving us having to queue to suffer them!

I agree with RBJ's points.
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« Last Edit: Jan 28th, 2005 at 3:10pm by dorf »  

Ofcom are completely ineffectual
 
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idb
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Re: Tight Wads
Reply #5 - Jan 29th, 2005 at 12:45am
 
Quote:
The arguement about international access could be turned on it's head, go whinge to the overseas telco's, it's not exactly difficult to open up the gateways. The tier one players in this country send out notifications to overseas administrations requesting access is opened on new number ranges, some of them do and others don't ... why ? Money, it's not profitable enough.


Why should people have to complain to foreign telecommunication companies just because these companies choose, with good reason, to either prohibit or make it not cost-effective, to route calls to rip-off numbers because of the hassle with out-payment administration? Take this example - someone holidaying in say Romania, who loses his/her credit card and needs to phone the bank, yet the clueless bank only provides a rip-off number that is not routed by the Romanian telecom company. Should the individual have to try contacting the Romanian operator, who probably does not understand English, and explain that rip-off 0870 numbers are different to standard geographic numbers, and please could it open up its gateway so the loss can be reported? The UK is about the only developed country that uses these numbers. Other countries do without them, so should the UK. The UK seems to be a haven for all sorts of telecommunication 'scams' - reverse-billed SMS, premium rate (genuine) and now premium rate (disguised) - all seemingly allowed to permeate into society due to the weakness of regulatory bodies such as Oftel, Ofcom and ICSTIS. It is laughable that the sanctions imposed by ICSTIS are rarely collected. The whole telco scene in the UK is ludicrous. When will it ever expect to compete with the likes of the US and Japan when it continues to push these scams onto the public?
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As from November 21, 2013, I no longer participate in the forum and am unable to receive private messages.
 
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Shiggaddi
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Re: Tight Wads
Reply #6 - Jan 29th, 2005 at 11:46am
 
Tungata, it is nice to hear the other side of the story, and in a free and democratic society, it's good that although people like myself, and most other members strongly disagree with the 0870 scam, there are of course people who do justify paying.

Very few people enjoy being ripped off.  Just remember the call centres opened in the first place, and costed over thousands of jobs in local contact centres, to save money.  Why should we then subsidise this even further.

If you went to a restaurant, if the waiter came over, and said that you could stand up, or pay £1 to sit down at your table, you'd find it poor customer service.

However, you arguement would justify the response. Well, I prefer to stand up to eat my meal, why should I subsidise those who sit down!!
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I realy hait itt wen peeple canot spel proply. Itt getts onn mye nervs sew mutch annd streses mee owt. Knot onley iz itt vary bade speling butt allso bade gramer.
 
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Dave
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Re: Tight Wads
Reply #7 - Jan 29th, 2005 at 1:46pm
 
Quote:
Very few people enjoy being ripped off.  Just remember the call centres opened in the first place, and costed over thousands of jobs in local contact centres, to save money.  Why should we then subsidise this even further.

I do wonder whether the movement of call centres to India and the like is being made easier by these numbers. The revenue from 0870 may be subsidising sending the telephone calls to India.
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dorf
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Re: Tight Wads
Reply #8 - Jan 29th, 2005 at 2:18pm
 
Absolutely Dave,

This is a signifcant part of the issue now. The revenue is being used to subsidise the overseas call costs and so effectively to subsidise the loss of UK jobs.

By the way Shiggaddi, they actually do what you are proposing would be quite stupid in a resturant, in many parts of Italy. If you want to sit down to drink or eat you have to pay more for the same food! If you want to sit out on the pavement tables the charges are even higher! They have a number of distortions like that. The locals all know this and stand up! Also in Italy if you hire a taxi they charge you extra if you put luggage in the boot. In parts of Greece they do this too! It really is quite crazy and is an earlier example of confusion marketing and deceipt which is exactly what this scam with revenue sharing NGNs is about.

There have always been confidence tricksters since the earliest days of mankind. It's just that some are more cunning and full of gile than others.
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« Last Edit: Jan 29th, 2005 at 2:30pm by dorf »  

Ofcom are completely ineffectual
 
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Dave
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Re: Tight Wads
Reply #9 - Jan 29th, 2005 at 2:44pm
 
...and to fix this whole mess, and make numbers equivalent geographical rate, the companies using them will have to be charged for their use as opposed to receive revenue.

At present, they [the service provider] are the customer [of the NGN provider], but we [the SP's customer] have to pay!

Thus, to stamp out this rip-off, SPs must accept these charges. In doing so, they may push down these costs to the Telecos providing the numbers, as there would be true competition in the amounts they receive, as opposed to the current fixed rates.

So neither the NGN providers nor the SPs have a vested interest in changing the way it all works.

I hope that makes sense to everyone.
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Shiggaddi
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Re: Tight Wads
Reply #10 - Jan 29th, 2005 at 4:44pm
 
I've never been to Italy dorf, or Greece, but I was using an example that I didn't think would exist in the world!!  However Italians do at least have the choice.  I don't mind the odd engaged tone, or being put through to different departments, all because I choose to call a geographic number, rather than an 0870 number.

However, you still get put on hold, and keep getting through to different department (and now even countries!!) on 0870, so there is no "added value" to us the customer anyway!!

In fact if you're paying by the minute for a call, I'd rather get a few minutes of engaged tones, instead of listening to music.
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I realy hait itt wen peeple canot spel proply. Itt getts onn mye nervs sew mutch annd streses mee owt. Knot onley iz itt vary bade speling butt allso bade gramer.
 
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