floella2 wrote on Jan 10
th, 2010 at 2:40am:
Everybody seems to have missed my point, which is:
Use freephone numbers but publish the geographic number too so that people have the CHOICE of which number is most cost effective to call.
I hope that
my posting took the point fully. My only quibble is over the alleged need for compulsion as this is (almost always) in the interests of the call recipient.
When addressing the reason for the problem we come back to the question of how mobile telephony is funded. A sizable element is obtained through the termination charges levied on other providers., These enable the market to grow and provide kids and the less well off with low cost access to telephony. It is argued that this money is simply channelled away as excess profit rather than being used to fund the provision of network services for incoming calls to PAYG users. I do not know claim to know exactly what would happen if these rates were removed, however I am not convinced by the arguments of the "Terminate the Rate" campaign, which maintains that this would have no effect whatsoever on any other aspect of the mobile business.
My personal inclination is for mobile users to be required to meet the full cost of the service they are using, without subsidy from those who call them (or those who they call on "freephone"). Given the pattern of mobile usage that has developed however (especially PAYG for the less well off) I cannot but feel concerned for the effect that a change may have. I would have rather not started from where we are, but in the real world this is what we must do. If forced to offer a suggestion, I would propose that the termination rate be phased out gradually over many years so as to give the market time to adjust, and to watch for any undesirable effects. This is far from ideal as any necessary regulatory intervention would almost certainly come too late. This is however an inevitable feature of an attempt to use competition to meet the needs of consumers, whilst making it subject to regulation that is intended primarily to enable a free market to work.
Some suggest that those wishing to offer a "free to caller" service should be compelled to pay these termination rates by accepting calls from mobiles and that Ofcom should have had the courage to preside over the withdrawal of freephone offers to landline callers which may have ensued. My only comment is that I have seen no evidence of a queue of 0800 users at Riverside House, demanding the right to pay in full for calls from mobiles.
Whilst some mobile tariffs charge more than the cost of an ordinary call for a call to a 0800 number, many do however charge only that. This does not address the complaint that the cost of the call should be met in full by the recipient. Would those who argue that this is an acceptable charge for a call to a "freephone" number accept that the same charge should be levied for every incoming call from a landline?