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Spare a thought for UK businesses… (Read 115,288 times)
bbb_uk
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Re: Spare a thought for UK businesses…
Reply #75 - Nov 13th, 2006 at 5:00pm
 
0870advice.com wrote on Nov 13th, 2006 at 12:12pm:
We plan at this point in time to charge a per minute fee to receive calls as we will also be charged a per minute fee in transitting the calls.
That makes sense and I forgot that the TCP charge per minute for calls ending on their network (not to mention any other provider that may be involved).

The fee can't be that great though as for example, call08.com, only charge 4.95 per month for a freephone number and this allows upto 500 minutes inclusive per month before being charged to receive incoming calls and then it's 2p/min.  Which is very good value I would have thought for a freephone number.

As a per minute fee would be payable to the TCP then I guess that means our hopes of the new 03x range not having an incoming per minute charge is very, very slim.  As this is the case the incentive for companies/gov depts, etc to migrate to an 03x number will be less as it is going to cost them to receive calls.
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Re: Spare a thought for UK businesses…
Reply #76 - Nov 13th, 2006 at 5:07pm
 
You are correct there is no chance that you will not pay an incoming ppm charge for calls over 03xx for that very reason ! 

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Dave
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Re: Spare a thought for UK businesses…
Reply #77 - Nov 13th, 2006 at 5:20pm
 
0870advice.com wrote on Nov 13th, 2006 at 5:07pm:
You are correct there is no chance that you will not pay an incoming ppm charge for calls over 03xx for that very reason !

But don't geographical providers charge? Most calls will of course, go to BT. Don't 'inclusive' packages exist because the price charged allows to OCP to pay to terminating these calls? Thus, prices will have to go up for these packages?

Can these per-minute charges by TCPs be reduced/done away with, or am I right in assuming that it is down to the TCP what they charge?
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« Last Edit: Nov 13th, 2006 at 5:20pm by Dave »  
 
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Re: Spare a thought for UK businesses…
Reply #78 - Nov 13th, 2006 at 7:12pm
 
Dave wrote on Nov 13th, 2006 at 5:20pm:
Can these per-minute charges by TCPs be reduced/done away with, or am I right in assuming that it is down to the TCP what they charge?
I think within reason its down to each TCP involved in delivering of the call as sometimes it can be more than one provider involved in the call and each one take their cut of the call.

However, they can't get carried away as OCP/CP's, etc complain to Ofcom that such a TCP is being anti-competitive.

So if someone has an NGN with BT and their underlying geographicals are also with BT then only BT are involved so BT are, as they say, laughing all the way to the bank.

However, if a CP is involved then they also have to take their cut along with anyone else who is involved in the call.

It's not a per call fee that TCP, etc charge it's an actual per minute fee which is why I very much doubt 03x wont have incoming call charges payable by the business using the 03x number not without a big hefty setup/linrental and/or network feature fees.  So it'll actually be cheaper for businesses using 0845 to keep their 0845 and not move to 03x unless forced to under pressure.  As 0845 is still known as and accepted as 'local' rate then they'll think there is no need to migrate as the caller already apparently only pays so-called 'local' rate for the call.

If I remember correctly this is what happened with 0845 when they were first introduced but due to competition in geographical calls area most CP/OCP don't charge businesses for using an 0845 instead recoup the money from the difference in price between geographical calls and 0845 calls

This is why I do wonder how Call18185, etc can actually get away with only charging 4p per call to a geographical.  Obviously things like most calls are under a few minutes long which means Call18185 can make a profit from the call but if a call is 30mins or hours or something then I guess they may possibly lose money on that call.  Don't forget that Call18185 also have to pay BT for us to be able to dial 18185 first to route the call.  I believe this is a setup fee and not a monthly/annual fee.

BT are the only ones that don't lose at the end of all this.
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Re: Spare a thought for UK businesses…
Reply #79 - Nov 13th, 2006 at 8:29pm
 
Each call to an 03 number will have to be relayed by BT so they will levy a charge to pass it off to the host telco who will have to pay that charge and pay to terminate the call then add their mark up.  Whatever charge is made to the caller none of that revenue will go in any way towards subsidising the cost of the BT handover or the call termination fee, so in a nutshell BT will indeed be the ones laughing all the way to the bank as you've said! 

03xx is actually quite a threat to competition as it will potentially be very difficult, if not impossible, to compete with BT on this numbering range.  I do say this in advance of any pricing information being released, but looking at the transit model its difficult to arrive at any other conclusion.

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Re: Spare a thought for UK businesses…
Reply #80 - Nov 14th, 2006 at 2:15am
 
0870advice.com wrote on Nov 13th, 2006 at 8:29pm:
03xx is actually quite a threat to competition as it will potentially be very difficult, if not impossible, to compete with BT on this numbering range.


As is already the case surely for 0845 and 0870 from the point of view of the telecoms consumer when making calls to those numbers.
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Re: Spare a thought for UK businesses…
Reply #81 - Nov 14th, 2006 at 2:46pm
 
0870advice.com wrote on Nov 13th, 2006 at 8:29pm:
03xx is actually quite a threat to competition as it will potentially be very difficult, if not impossible, to compete with BT on this numbering range.  I do say this in advance of any pricing information being released, but looking at the transit model its difficult to arrive at any other conclusion.

But with the way it works at the moment, we all have to pay (pretty much) old BT rates for these calls. Is it not keeping this high call rate that has allowed companies such as yours into the marketplace? In which case, the competition has done nothing to alleviate these high prices.

And you talk about tight profit margins. But the original brief was to drive down prices that had been defined by BT. I do not see that this is really happening.
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Re: Spare a thought for UK businesses…
Reply #82 - Nov 15th, 2006 at 11:59am
 
Dave wrote on Nov 14th, 2006 at 2:46pm:
But with the way it works at the moment, we all have to pay (pretty much) old BT rates for these calls. Is it not keeping this high call rate that has allowed companies such as yours into the marketplace? In which case, the competition has done nothing to alleviate these high prices.
It's the revenue share that takes place that is keeping these prices artificially high and therefore excluded from inclusive minutes as including them in inclusive minutes would mean a higher inclusive plan charge (similar to what Telewest do now as they include calls to NGNs) so OCPs wouldn't lose out from such calls to NGNs.

Obviously these high call prices does allow companies such as goldnumbers into the marketplace but with the advent of 03x range this changes things as the 03x range is designed for consumers and NOT OCPs/CPs like the existing NGNs.

In the past, Ofcom have pretty-much been on the side of CPs/OCPs, businesses, etc and not us end consumers which is why it has taken so long to have something done but even then they (Ofcom) only tackled 0870 numbers.
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Re: Spare a thought for UK businesses…
Reply #83 - Nov 15th, 2006 at 12:04pm
 
0870advice,

Here is something you may be able to answer!  I realise your company is just a CP and not an OCP but you may still know.

When Ofcon announced the new 03x range they said it will cost national geographical rate (and be included in inclusive plans, etc).  Now I'm unsure why Ofcom said it will cost the same as national geographical rate when as far as us consumers are aware, calls to local or national geographical calls are the same (except those on BT's LUS).

Did Ofcom state this because internally, calls to local and national geographical numbers are still charged for separately?  Ie, calls to local geographicals are cheaper that calls to national geographicals?
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« Last Edit: Nov 15th, 2006 at 12:04pm by bbb_uk »  
 
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Re: Spare a thought for UK businesses…
Reply #84 - Nov 15th, 2006 at 12:24pm
 
Hi bbb_uk,

Our interpretation of Ofcoms proposals is that calls to 0370 numbers will cost the caller the same as calls to 01/02 geographic calls (and fall within inclusive free minute plans).

There should be no distinction between local and national calls any more... although this will obviously depend on the callers call plan from their LCR provider.
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Re: Spare a thought for UK businesses…
Reply #85 - Nov 15th, 2006 at 1:21pm
 
0870advice.com wrote on Nov 15th, 2006 at 12:24pm:
Our interpretation of Ofcoms proposals is that calls to 0370 numbers will cost the caller the same as calls to 01/02 geographic calls (and fall within inclusive free minute plans).

There should be no distinction between local and national calls any more... although this will obviously depend on the callers call plan from their LCR provider.


I think bbb was asking whether the wholesale cost of a local area call vs a national call to an 01/02 number was now the same to a call originating company like BT or whether their costs for the two types of call were still different even though on most price plans (apart from BT Light User) the customer now pays the same for local and national 01/02 calls.
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Re: Spare a thought for UK businesses…
Reply #86 - Nov 15th, 2006 at 1:29pm
 
Hi NGMs Ghost,

To clarify then... certainly from all of our suppliers, the wholesale cost of local and national calls is exactly the same.
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Re: Spare a thought for UK businesses…
Reply #87 - Nov 15th, 2006 at 3:35pm
 
Yep NGMGhost, that's what I was asking.

I'm still curious why Ofcom said 03x range would be chargable at national geographical rates (for those without inclusive plans, etc)!!

Never mind.


0870advice,

You keep mentioning 0370?  I didn't realise Ofcom have only specifically announced that number range!  I thought other number ranges within 03x will be available like easy-to-remember ones for charaties/gov depts, etc given preference.
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Re: Spare a thought for UK businesses…
Reply #88 - Nov 15th, 2006 at 3:49pm
 
bbb_uk wrote on Nov 15th, 2006 at 3:35pm:
You keep mentioning 0370?  I didn't realise Ofcom have only specifically announced that number range!  I thought other number ranges within 03x will be available like easy-to-remember ones for charaties/gov depts, etc given preference.


Perhaps Ofcom is hoping to introduce some revenue share NGN services on other 03 numbers just so as to keep the public totally confused about what these number prefixes mean. Wink

But to clarify one point with 0870Advice will the deal for the companies selling or using these numbers be any different on 0870 from 0370 after 1st Feb 2007?  And will new 0870 numbers still be available for allocation to customers?  Will the only difference be that on 0370 the call company you originate the call with can't choose to apply its own anomalous and outrageous surcharge above national rates so long as there is an announcement stating the price of the call?

Its still hard to even begin to imagine why Ofcom allowed this highway robbery surcharge for 0870 numbers to be imposed if a call originating company wants to do so.
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Re: Spare a thought for UK businesses…
Reply #89 - Nov 15th, 2006 at 4:09pm
 
OK Guys,

Here's a couple of out-takes from NTS FAQs (http://www.ofcom.org.uk/media/mofaq/telecoms/nts/) which may answer your questions... or may not !

4. How much will 0870 calls cost when the changes have been implemented?

As proposed in September 2005, Ofcom will require mobile and fixed-line providers (including payphones) to charge the same or less for 0870 calls as they do for national-rate calls to geographic numbers (starting 01 or 02). If providers wish to charge more for 0870 calls they will have to make a free-to-caller price pre-announcement at the start of the call.

This change is likely to significantly reduce the price of many calls to 0870 numbers. It will also mean that 0870 calls will generally be included in call packages. Currently daytime 0870 calls usually cost around 8 pence per minute from fixed-lines. Typical fixed-line call packages offer calls to geographic numbers at 3 pence per minute or less.

The requirement to charge no more than the rate for geographic calls will also extend to all-calls packages and bundled-minutes. So for example, if you have subscribed to a package that allows you to make national calls to geographic numbers at no charge then 0870 calls must also be free of charge. Similarly if your subscription has a call allowance that includes national calls to geographic numbers then you will also be able to use the allowance to make 0870 calls.

8. When the changes to 0870 numbers are implemented, how will 0870 differ from the new 03 number range proposed in Ofcom’s Numbering Review? Why would organisations choose to use 03 instead?

The 0870 and 03 ranges will be very similar after the changes to 0870 are implemented. Both with have tariffs linked to geographic rates and neither will support revenue sharing in practice.

The changes to 0870 are designed to repair the linkage to geographic tariffs that is currently broken whilst allowing service providers to retain their existing numbers if they wish.

Ofcom has proposed to introduce the 03 range to accommodate future growth for services that do not require revenue sharing since the 0870 range is filling up and will eventually run out of spare capacity.

Ofcom's hopes that in time the new range will become trusted by consumers as covering clearly-understood services and price ranges. Some organisations currently using 0870 numbers may find the 03 brand attractive and decide to move their services to 03 numbers.


NGMs Ghost - I think we discussed the network message earlier... and the potential 'mis-use' of this facility !

The best laid plans...........................
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