Dave wrote on Jun 7
th, 2008 at 9:08pm:
I will post a fuller explanation of how it works, the issues and the proposals soon.
To explain how the dispute between the telephone companies has come about and why this is likely to affect changes to 0870, I will first explain what happens when you make a call and how the call charges are split. To recap, the current dispute is between BT and the five main mobile providers (O2, Vodafone, Orange, T-Mobile and 3).
When you make a call from one telephone provider to another, not only must the call be carried from one to the other, but one pays the other, in the same way as you pay your provider when you make (originate) that call.
The telephone company that the caller is with is known as the originating communications provider or OCP. The telephone company that the receiver is with is the terminating communications provider or TCP.For example, if someone makes a call from a Vodafone mobile to an Orange one, the OCP
in this case is Vodafone and the TCP is Orange. If someone on Orange calls someone on Vodafone, then Orange is the OCP and Vodafone the TCP. The same is true of landline providers and any combination when calling from fixed line to mobile and vice versa.
Calls are
originated or made from OCPs and
terminated with TCPs. The payment an OCP makes to a TCP is known as a
termination payment.
The dispute surrounds the amount BT pays the Orange, Vodafone and 3 (the TCPs) for calls made to them from its fixed lines.
BT would like to reduce the amount it charges callers and to do this it must reduce the termination payment. These mobile TCPs aren't happy with this.
Different 0870 numbers are provided by different telcos, and they don't accept the new rates BT has proposed it will pay them for calls originated by BT or passed to BT by another OCP for termination on the their networks. For more details, see the Competition Bulletin from Ofcom
here.
The
Competition Appeals Tribinal's judgement on the dispute between BT and the mobile providers is that Ofcom didn't use a fair method when determining the new rate. We are awaiting the next step and it will not be until this has all been cleared up until the wheels will go into motion to change the call rate of 0870, if ever.