Quote:The Post Office's offering charges 10p/min to 0870 in the daytime. If this isn't taking advantage of this misleading way of pricing, then I don't know what is. Again, I'm sure Ofcom see it as more competition, and if people wish to pay this much for the service, then it is up to them.
I think that it all calls in to question the competition in today's UK telecoms market. It appears to me that the 084/087 rip-off is just the tip of the iceberg.
As for BT going out of business, what happens to the network? Are we all left without service or will the government bail it out?
Regarding the current 0870 charges of the Post Office and even call18866.co.uk, both of whom charge more for 0870 numbers than BT, it isn't actually their fault.
The reason this is happening is because in the name of competition BT & Cable & Wireless (the big boys of the telecoms marketplace) were recently allowed to charge other call carrying companies more to terminate NTS calls with BT and Cable & Wireless than they charge for terminating NTS calls that originate on their own networks.
Thus faced with the need to earn the same percentage margin on 0870 calls as their other calls the Post Office and Call18866 were faced with no option but to charge more than BT for them. The alternative would have been to refuse to carry the calls but that is something that it is rather hard for an "all calls" CPS provider (like the Post Office) to explain doing. That would only then lead to angry calls to their customer service department and the explanation that "ahem in order to get you the best price we can't carry the call but you can make the call and get the best price with BT by dialling the prefix 1280 before the rest of the number".
The villain again here is Ofcom who thinks competition is the right of various parties in the industry to charge as much as they want but not the freedom of the consumer to be able to make calls to 084/7 at prices cheaper than the operator with Significant Market Power i.e. BT Yet for BT to currently be alllowed to offer the cheapest prices to 0845 and 0870 numbers flies in the face of all Ofcom's own rules and charters about the behaviour of the dominant market supplier.
But let's just face it that on the whole Ofcom people just aren't as clever as BT commercial people and that BT basically run rings round them. It must be like schoolteaching - if you are no good at making money in the Telecoms industry then you take a job with Ofcom.
The big step that would have some immediate impact is for Ofcom to make rules that all calls carried on BT lines with all CPS and indirect carriers and also with BT must have a compulsory price announcement facility before every call stating the price per minute (as per the facility currrently provided for free by call18866.co.uk)
There is a lot of rubbish in the NTS Options for the Future Ofcom consultation about how expensive and difficult it would be for telecoms companies to do this but if so how is it a twobit player, with only 10,000 customers, like call18866.co.uk can afford to do it and still make a profit? It is not at all expensive to offer this facility but what would be expensive is the huge loss of call revenue to BT that would follow when people simply boycott 0870 in large numbers and send emails etc to the companies concerned instead.
As the Ofcom Consumer Panel has made very clear in its own submission Ofcom has basically been in total dereliction of its duties in the two Ofcom consultation documents on NTS and has suggested a solution that is almost entirely industry centric but in no way in the interests of promiting the cheapest prices for retail domestic telecoms consumers.
Ofcom talks about increased granularity in the price tariff being a good thing but the reality is that like the current nonsense with the 0844 doctors surgery call tariff no one then has a clue what they are paying. In fact in terms of granularity I think Ofcom must have secretly been using icing sugar so that the whole lot would simply pass through the sieve without any effect whatsoever.
If Ofcom don't get this one right there will be calls for the head of Stephen Carter and also most certainly for the head of the elusive and seemingly highly ineffective Kip Meek.
As for BT going out of business and the telephone system disintegrating it wouldn't happen given that the economic prosperity of the whole of the uk is at stake.
But government money might be needed to manage a transition to a national telco running the network but with no ownerhship of the lines into the homes of most
telecoms consumers. The same model as for the gas and electricity industries should probably be adopted in terms of final supply of the product into the homes of end users.