BT's latest changes (discussed here) are due to come into effect on 1 October 2006 and will see the introduction of the "call set-up fee" of 3 pence per call and whole minute charging. This has been closely followed by similar changes by Talk Talk which are discussed here.

With whole minute charging and a call set-up fee of 3p, the quoted pence per minute will not bear a true reflection of the total cost of the call. The actual pence per minute will vary according to call length as well as charge rate. I think that this will, potentially, have great implications for the clarity of the pricing information given during the promotion of such telephone services.

An advertisement which states "Calls cost 3 pence per minute from BT landlines" will therefore be incorrect as the cost of the call is, by definition, the total cost. Thus, I feel that this latest change will result in service providers giving misleading pricing information, just like they do with 'local' and 'national' rates for 0845 and 0870 numbers.

Indeed, with the lack of action by the likes of Trading Standards and Advertising Standards Authority, I will not be hanging my hat on people not being confused or completely ignorant of how much they are actually being charged.

The minimum charge for any (chargeable) call is currently 5.5p (previously 5p). For calls to geographical numbers, mobiles and international numbers, whole minute charging will apply, as well as the call set-up fee. This will provide BT with a mechanism by which it can vary the minimum charge of these calls, as well as pushing up their prices.

Where whole minute charging will apply (geographicals, mobile and international calls), the minimum amount that one can pay for a connected call will be the call set-up fee plus amount for the first minute. In all other cases, such as 08xx and 09xx numbers, the minimum will therefore be 3p.

To illustrate how whole minute charging affects this minimum amount, take calls charged at 3 pence per minute. This is the rate for geographical calls during the daytime on BT Together Options 1 and 2. The call will cost 6p and anything over a minute will cost more. Previously, a call to a 3p/min number would cost 5.5p for anything upto 1 minute 50 seconds.

With the 5.5p minimum charge, it's very unlikely that a quick call that goes to a mobile phone answering service where the caller chooses not to leave a message will result in the cost exceeding this minimum. However, when the changes take effect, calls to O2, Vodafone, Orange and T-Mobile numbers will cost 13p/min, meaning that such a call will cost 16p.

Note that BT's terms and conditions leaflet says that, whole minute charging will apply to "local and national geographic calls, international calls, landline-to-mobile calls, premium rate service calls and NTS calls (e.g. 0845, 0870)". This is an error and the only calls where it will apply are UK geographic, mobile and international calls.

bbb_uk wrote on Sep 4^th, 2006 at 11:36am:

I disagree. If it says "Calls cost..." then that suggests it is the total cost of the call. The only way for it to be correct is for it to say "Calls cost 3p per minute plus 3p connection fee". I'm sure I've seen cost of calls from NTL lines quoted as such.

If apples are advertised in the supermarket as "£1 per kilogram" but when you go to pay for them, they add an extra £1 to the price, you would quite rightly argue that the pricing was misleading. Yet by your argument, this is acceptable because it says "per kilogram", and they can add whatever they like to the total price without it being misleading.

bbb_uk wrote on Sep 4^th, 2006 at 11:36am:

That's an interesting point, I haven't thought of that. So these TV quizzes that are charging 60p or 75p per call, for example, will now have to change their pricing information to 63p and 78p, respectively. How can it be right that a company which chooses a pricing point for its service have this change forced upon it?

jrawle wrote on Sep 4^th, 2006 at 4:38pm:

If it says "The charge rate is 3p/min from BT landlines" I may be more inclined to accept it, although I'd much prefer that it makes mention of the call set-up charge as well. But, as I said, the cost of a call is the total cost.

The thing is that it is the service provider that provides the pricing information and it is the service provider that is responsible for its accuracy, and not BT or Ofcom. Thus, if it's incorrect or potentially misleading it is the service provider that may be liable for prosecution. I would therefore assume that even though BT are to change the rules, that this will still be the case that the service provider will be liable.

bbb_uk wrote on Sep 4^th, 2006 at 5:37pm:

The vast majority of calls to 08 and 09 NGNs will cost more than the minimum, whereas all calls will include the connection fee. These are in distinct contrast to each other and I think that this is the relevant fact here.

What it boils down to and the main reason I started this thread is to discuss the how these changes affect legitamacy of pricing information. It's one thing having telcos provide accurate pricing information, but how can you legislate to keep service provider's pricing information up to date?

OverlordKain wrote on Oct 26^th, 2006 at 11:20pm:

You don't get charged until the call is answered with BT and 1-prefix providers like 18185.

OverlordKain wrote on Oct 26^th, 2006 at 11:20pm:

A 61 second call to Canada will cost 4p connection charge plus 1p (2 minutes at half a pence), so the total is 5p.

OverlordKain wrote on Oct 26^th, 2006 at 11:20pm:

You don't get charged if you are with BT and the line is engaged. But the thing is that answering services like 1571 and mobile voicemail answers the call and thereby charging the caller.

OverlordKain wrote on Oct 26^th, 2006 at 11:20pm:

No, because anarchical whole minute charging 'only' applies to calls to geographical numbers, mobile numbers and international calls when making a call with BT. There will be a minimum charge of 5.5p (see here).

OverlordKain wrote on Oct 26^th, 2006 at 11:20pm:

The minimum charge when calling a geographical number (at 3 p/min) is 6p.

OverlordKain wrote on Oct 26^th, 2006 at 11:20pm:

As someone who follows these things quite closely, I'm finding it difficult to keep up and be sure that my interpretation is correct.

Another thing to bear in mind is call rounding, which doesn't necessarily affect minimum length calls:
Quote:

These roundings appear to be before VAT is added. As we tend to think of prices including VAT, it adds a source for confusion when working out what the actual cost is.