SilentCallsVictim
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Perhaps we should take this a little further, at the risk of adding to the confusion that already exists. There is much more, but I hope that this will be enough for now.
0845, 0844, 0871 and 09xx numbers are all used to pass money from the caller to the called person, through the respective telephone companies. This used to be the case with 0870, but that ended on 1 August. In all cases this means that part of what is paid by the caller is available to the called person, either as cash or perhaps as a subsidy on the cost of their telephone service.
0871 and 09xx numbers are designated by Ofcom as being used for “Premium Rate Services” and are therefore regulated specially. There is nevertheless a Premium Rate applied to calls to 0845 and 0844 numbers.
The amount of revenue that BT can retain on all of these calls is limited by regulation. This means that the vast majority of the charge paid to BT is in fact the Premium. There are no such regulations applied to other providers, or to the cost of geographic calls through BT.
BT’s unregulated rates for ordinary calls (when not covered by a package) have long been greater than those for calling 0845 numbers, which have a relatively small premium - around 1.5p per minute. It has therefore been possible for BT to add 0845 calls to those included in packages with only a relatively modest increase to the price of the package.
This charge for ordinary calls has been steadily rising - by over 30% in the last 12 months - as part of BT’s efforts to promote its most inclusive packages. It has now overtaken that for the most expensive 0844 ranges. As the premium on these is around 4p per minute it would be “financial suicide” for these to be included in packages. (The quote is not an official statement from BT, but a comment passed in a private discussion about the feasibility of packages being extended in this way.)
Apart from the disgraceful decision to retain the premium charge on calls to 0870 numbers, when this is simply extra income for themselves, Virgin Media and the Mobile companies “play it straight” by passing on the extra cost that they incur when paying over a revenue share. There may be arguments about whether the premium is disproportionate, however that raises the question of whether their price for ordinary calls is kept artificially low as a result of competition.
Because of its unique regulatory situation, it is BT that is the odd one out - although there are a few other providers who simply copy its tariffs. It is perverse to charge less for calls that cost more to connect. It is therefore quite wrong to use BT as an example of telephone tariffs, with the comment that “other providers may vary”, it should be the other way around.
Whilst only 0871 and other ranges are designated as being used for “Premium Rate Services”, we must remember and continue to point out to the world that all 084 calls include a Premium Charge. This is sometimes hidden in a package fee or by the fact that the cost of comparable ordinary calls can include a greater premium - the penalty charge for calling outside the times when they are covered by a package.
BT is already required by regulation to effectively cross-subsidise the price for calls to 0845 numbers so that it may cover its overheads and produce a return for its shareholders. Adding them to its packages does nothing to change this. Do we want Virgin Media and the mobile operators to be required to do the same, or to do so voluntarily?
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