sherbert wrote on Feb 4
th, 2011 at 9:53am:
I have recently made a day time 0845 call and it cost 29 pence for eight minutes and seventeen seconds. A day time call to a geographical number lasting 1 minute 48 seconds cost 26 pence
These costs tally with the rates from 4 Jan 2011.
This example helps to demonstrate the odd effect of the present regulation on BT. (The figures which follow are rough, rounded to a penny.)
14 pence would have been paid over to the telco terminating the 0845 call. This means that (with VAT removed) BT earned 10p from a 8 minute 17 second call to a 0845 number (the setup fee plus some costs), but 22p from a 1 minute 48 second call to a geographic number. It is fairly meaningless to express this selective example in terms of pence per minute rates, when a significant element is the fixed charge, however people do like to think of telephone charges in this way.
Excluding VAT and the "Service Charge" paid to the call recipient, the BT rates for these calls were
1 penny per minute for the 0845 call and
12 pence per minute for the geo call; less indeed. This ratio does not serve as general rule, it simply shows how a well-chosen real example can highlight the bizarre nature of the present situation. Examples like this can be exploited by our opponents to add to the confusion and misunderstanding of the underlying reality of "Business Rate" numbers.
No business would operate in such a way, unless required to do so by regulation. This is why it is absurd to quote BT rates (when BT originates less than 25% of non-business calls) and say that other providers' charges may vary. It is BT that is the odd case - due to regulation.
BT subscribers who regularly make weekday daytime calls - so that the monthly cost of geo rate, 0845 and 0870 calls approaches £5 (£2 if paying for unlimited evenings and weekends) should be subscribing to "Unlimited Anytime". This should be thought of as the standard option, except for those who only rarely or never make weekday daytime calls.
With "daytime" now extended to 7pm and package prices frozen whilst call charges were increased by 9% (not 2.13%) on 4 Jan, those for whom "Unlimited Anytime" is not the standard are fewer in number.