Let us introduce some real figures to aid our discussion. The cost of termination with 0844 and 0871 numbers is in fact quite a bit higher than to that of mobiles.
The BT Wholesale Carrier Price List indicates how much BT pays out to other terminating operators, and it therefore allows us to get a handle on the levels concerned.
So as to avoid you having to traul it I will quote the rates here. All figures are in pence per minute and are exclusive of VAT. All information is from
Section B1: Telephony:
- Geographic numbers
Source: Part 1.02.1
Daytime rates only. Rates vary slightly by operator, but these figures give an idea:
- TalkTalk:
11/05/2012 to 31/03/2013: 0.2889
01/04/2013 to 31/01/2014: 0.3073
01/02/2014 onwards: 0.0137
- Virgin Media:
01/04/2012 to 30/09/2012: 0.3544
01/10/2012 to 31/03/2013: 0.2889
01/04/2013 to 31/01/2014: 0.3073
01/02/2014 onwards: 0.0137
- Vodafone C&W:
01/02/2010 to 30/09/2012: 0.2921
01/10/2012 to 31/03/2013: 0.2953
01/04/2013 to 31/01/2014: 0.3137
01/02/2014 onwards: 0.0209
BT's own termination charges are quoted depending on how far BT has to carry the call (the longer it does, the more it charges):
Source: Part 1.01
- Local Exchange:
01/04/2013 to 31/01/2014: 0.3073
01/02/2014 onwards: 0.0137
- Single Tandem:
01/04/2013 to 31/01/2014: 0.4228
01/02/2014 onwards: 0.1454
- Double Tandem (0-<100km):
01/04/2013 to 31/01/2014: 0.6728
01/02/2014 onwards: 0.3954
- Double Tandem (100km - 200km):
01/04/2013 to 31/01/2014: 0.8465
01/02/2014 onwards: 0.5691
- Double Tandem (>200km):
01/04/2013 to 31/01/2014: 1.0862
01/02/2014 onwards: 0.8088
- 03 numbers
Source: Part 1.02.3
Rates are daytime only.
Local Exchange: 0.67
Single Tandem: 0.56
Double Tandem Short/Medium/Long: 0.41
- Mobile numbers
Source: Part 1.02.1
Rates applied/apply at all times
- "3":
01/04/2011 to 26/12/2011: 2.984
27/12/2011 to 31/03/2012: 3.015
01/04/2012 to 10/05/2012: 2.053
11/05/2012 to 31/03/2013: 1.5
01/04/2013 onwards: 0.848
- O2:
01/08/2009 to 31/03/2010: 4.2359
01/04/2010 to 31/03/2011: 4.4276
01/04/2011 to 31/12/2011: 2.984
01/01/2012 to 31/03/2012: 3.015
01/04/2012 to 10/05/2012: 2.053
11/05/2012 to 31/03/2013: 1.5
01/04/2013 onwards: 0.848
- Orange:
01/12/2010 to 28/02/2011: 4.43
01/03/2011 to 31/03/2011: 4.431
01/04/2011 to 23/12/2011: 2.984
24/12/2011 to 31/03/2012: 3.015
01/04/2012 to 10/05/2012: 2.053
11/05/2012 to 31/03/2013: 1.5
01/04/2013 onwards: 0.848
- T-Mobile/EE:
01/04/2011 to 23/12/2011: 2.984
24/12/2011 to 31/03/2012: 3.015
01/04/2012 to 10/05/2012: 2.053
11/05/2012 to 31/03/2013: 1.5
01/04/2013 onwards: 0.848
- Vodafone:
01/12/2010 to 30/04/2011: 4.4276
01/05/2011 to 22/12/2011: 2.984
23/12/2011 to 31/03/2012: 3.015
01/04/2012 to 10/05/2012: 2.053
11/05/2012 to 31/03/2013: 1.5
01/04/2013 to 31/03/2014: 0.848
01/04/2014 onwards: 0.845
- Some 084 and 087 numbers
Source: Part 1.02.3
Rates from February 2014 and apply during the daytime only.
- 0844 g11 numbers (BT retail charge is 4.084ppm inc VAT + Call Set-up fee): 4.5512
- 0844 g6 numbers (BT retail charge is 5.105ppm inc VAT + Call Set-up fee): 4.9765
- 0845 numbers: 0.9238
- 0871 g7 numbers (BT retail charge: 10.211ppm inc VAT + Call Set-up fee): 9.8776
From the above it can be seen that mobile termination rates have been dropping and are now less than 1ppm (exc VAT).
The point is, therefore, that it is the call retailers (Originating Communications Providers/OCPs) who are ripping us off. We have a multi-provider system and, as such, callers are responsible for selection of their services (from their call provider) and receivers are responsible for their services (from their receiving provider).
In the past, it was the case that selection of a mobile telephone number meant that all callers' telephone providers were charged a rate much greater than to geographic/03 network destinations. Now it is the case that any charging above the rate of a geographic rate call is by and large down to the OCP retailer.
03700000000 wrote on Feb 23
rd, 2014 at 11:19pm:
On that basis, and this is the important point, [no matter how the call cost comes about] how on earth can you operate a number costing more to dial than most NGNs and then complain about NGNs?
"If" we had a system where there was one sole provider of telecommunications then it would be the case that there would be a definitive call rate for any one number.
As we don't, each party has its own responsibility. The point is that the plural market means that there are essentially two markets: one in origination and another in termination. Think of everything upto or back to the termination payment or charge — these are the two "markets" I refer to.
Call retailers (OCPs) set prices based on a number of factors, including the amount they have to pay out in the form of termination payment. Call terminators set prices based on a number of factors including the termination charge.
You can't blame the customer of another telco if your OCP telco levies a premium to call them. This is exactly the same as blaming the fizzy drinks manufacturers for vending machines in airports and railway station which charge an arm and a leg for their products.