SilentCallsVictim wrote on Feb 21
st, 2011 at 7:13pm:
bbb_uk wrote on Feb 21
st, 2011 at 1:36pm:
Then I anticipate that the cost of calling these NTS numbers will rise, especially 0844.
When a restriction introduced to encourage use of 084/087 numbers by making calls cheap is removed, then obviously the price would be expected to rise, even if the restriction only applied to the largest single provider. Those who make no money on originating calls to NTS numbers (BT by compulsion, others due to competing very directly with BT) must be inflating charges elsewhere in order to make a profit. Even if we will not see direct evidence of the cross subsidy being removed, I do not want this situation to continue. I certainly do not wish to see it extended by being applied to all telephone companies, so that the cost of calling NTS numbers falls, whilst other charges rise.
I know where you're coming from and I agree that cross-subsidy exists but going from past experience (aka line rental), the cost of line rental went up and up and others costs went up and up as well. I have seen no evidence, obvious anyhow, that the cost for BT for line rental was cross subsidised and so when line rental went up, other costs didn't (ie no need to cross subsidy now that line rental restriction removed).
If we were in a perfect world then removing restriction on NTS numbers may mean a, for example, slight rise to NTS numbers but then no rise anywhere else like other call charges, line rental, etc because NTS numbers no longer has to be subsidised. However, were not in a perfect world and I simply do not believe that removing restictions on NTS numbers and a subsequent price increases means other rises wont happen.
Competition, IMHO, just doesn't really exist for landline & calls like it does for mobiles. For example, BT whom include calls to 0845 have to obviously pay for these calls despite so-called offering them free (for those on an appropriate tariff) so obviously BT have to cross-subsidise these costs from other areas and hence the increase after increase.
However, most other OCP's don't include calls to 0845 so when BT increases their costs pretty-much across the board there shouldn't be such a need (and rush in some cases) for these other OCPs to follow them. However, they basically do.
Basically, there is no real perfect answer where everyone wins lol.
Quote:For me, there is enough competition to make the fact that BT originates less than 25% of non-business telephone calls sufficient reason for its charges for calls to non-geographic numbers to be regarded as atypical and unsuitable for use as an illustration.
Last I noticed most OCPs (mobile providers excluded) generally charge around the same for calls to NGN so the, "calls to 0844 ... cost 5ppm from a BT landline, other providers may differ" to be as accurate one can get (at the moment). Obviously the main difference is mobile OCPs like I mentioned and VirginMedia, who must be the UKs most expensive landline provider for calls to NGNs, and are an exception to the norm for landline providers.