loddon wrote on Feb 9
th, 2011 at 9:50am:
This points to the deception in the majority of thinking on this subject. Lack of "Transparency" is not the main problem nor is "Transparency", as proposed, the whole answer. It still does not address the fundamental dishonesty in the charging mechanism for 08 numbers.
This begs the question why single out 08 numbers? What about (in particular) mobile telephone numbers?
loddon wrote on Feb 9
th, 2011 at 9:50am:
It is reported in an earlier post on this thread that Tfl get 1.5 pence per minute from calls to their 0843 number. So the truth is that Tfl's charge is 1.5 ppm; NOT 5 ppm. The Tfl Telco is charging Tfl 3.5ppm for providing this service to Tfl and it is not proposed that there is an honest and open declaration of this charge which Tfl should be paying. Certainly this additional charge should not be imposed on the caller. If Tfl want to charge for their information service over the telephone that is one thing. But it is fundamentally dishonest to deceptively impose their Telco charges on the callers.
The charge imposed by TfL is in the region of 5 pence per minute as that is what it decided its telco should derive from caller's telcos (OCPs).
loddon wrote on Feb 9
th, 2011 at 9:50am:
The callers have no opportunity to negotiate a better price or to seek better value for money. There is no incentive for Tfl to seek better value for money because they are not paying the bill. The Telco have no incentive to offer better value for money as they are not in negotiation with the callers. Neither Tfl nor the Telco have any incentive to keep costs down by providing a faster service and shorter calls thereby lowering the cost. Indeed the Telco are quite happy to see calls take longer and for queues to get longer because the longer the call the more they make. This way of doing things is an incentive towards inefficiency. Longer calls and longer queues are desirable for both Tfl and the Telco because they make more revenue. Multiply this by the billions of calls made by millions of callers to hundreds of thousands of 08 numbers and you see a massive incentive towards inefficiency across the country and a massive fraud on the telephone calling public who can do nothing to reduce the costs. There is no true market and therefore there are no market forces acting to drive down costs and increase efficiency.
It is down to TfL to seek better value for the 5ppm subsidy it receives.
See this simple diagram I made of the various parties:
Caller ----- <Caller's telco>
[X]
<Receiver's telco> ----- Receiver
The Caller subscribes to the Caller's telco which it pays and therefore it acts in the interest of its customer (Caller). It makes no sense to suggest that it would ever offer the Receiver anything, i.e. a higher termination fee to pass point
[X]
as that would be like doing business and offering a better terms to the person you're buying off in return for no benefit. (I put this paragraph in so as to show similarity between this and what happens at the Receiver's end.)
Now consider what happens to the right of point
[X]
which is the Receiver's responsibility. The Receiver subscribes to the Receiver's telco which it pays and therefore it acts in the interest of its customer (Receiver). It makes no sense to suggest that it would ever offer the Caller anything, i.e. lower termination charges (so as to permit Caller's telco to offer lower call charges) as that would be like doing business and offering a discount to someone who is buying from you giving in return for no lesser service.
Thus, it stands to reason that the Caller's responsibility is to the left of
[X]
and the Receiver's is to the right.
Please forgive my simple business language; I hope this sort of logical reasoning helps understand what's going on.