Heinz wrote on Sep 3
rd, 2010 at 9:16pm:
11.99p connection!
The increase to the connection fee appears to be the only significant change from the current call prices.
The tables suggest that this increase has not been applied to calls to 0845 and 0870 numbers, as the connection fee remains at 11p in the
October price list. One suspects that this could be an error, as these have not been treated differently before.
As with BT, the pricing for the inclusive packages means that most customers would be best advised to have the appropriate "unlimited" package in place for the times when they use the telephone. The increase to the connection fee strengthens that position, making the inclusive packages more attractive (relatively speaking).
Unlike BT, Virgin Media is not constrained by regulation in its pricing for NGCS calls. Because it offers a total service, unlike those who simply offer cheap calls in direct competition with BT on BT lines, it is not pressured to copy BT's regulated tariff structures. This is why calls to 084 numbers are offered at realistic prices which reflect the cost that VM incurs and enable it to make a sensible margin on all types of call.
Virgin Media customers are not required to cover the additional costs of 0845 calls in the price they pay for a normal "Talk" package. The pre-pay minutes "Talk Anywhere" packages are available for those who make lots of higher rate calls.
There are two general points that emerge:
1. The general effect of these changes (BT and VM) on 1 October is to increase the relative cost of calling 0845 and 0844 numbers, as against 01/02/03.
Part of this is caused by more customers being drawn to use inclusive packages. This effect strengthens the argument against use of these numbers, in favour of that for use of 03 numbers where appropriate.
The increased marginal cost to callers is not matched by any increase in the benefit derived, however it serves to further damage the relationship between users of 084 numbers and those who call them. The forthcoming VAT increase will have the effect of extending this further.
2. Virgin Media continues to charge a premium for 0870 calls, 15 months after it ceased to incur additional costs in placing them. I can see no special prominence being given to the rate for calls to 0870 numbers, despite them being greater than that for calls to a geographical number.
This was the intention of the Ofcom revisions to the regulation of 0870 numbers. The "
National Telephone Numbering Plan" is quite explicit on this point.
I will be seeking to highlight the first of these points. The second is of particular relevance to the name of this website.