Orange to start charging for calls to 0500/0800/0808 Freephone Numbers.

Steve_xx

bbb_uk wrote:

The problem is that these calls aren't free to the mobile networks so they charge for it. I'm not sure how much it costs for mobile networks to carry the call (I don't mean on their own network) but the terminating cost they pay to BT, etc.

One thing you have to remember and that is if Ofcom did (but they won't) force the networks to carry the calls free then the networks would still incur costs for carrying the call and they would then pass cost on in an increase to either handset prices/tariffs, etc.

Don't you remember when the networks were forced by ofcom to lower the termination costs (for calls ending on their network) they did this under a fight and in turn increased the cost to handsets and text messages.

Like I said I don't know the whole cost issue involved for the networks in carrying this type of call but they could probably charge normal geographical costs for the freephone.

Similar thing about 0845/0870 calls that costs upto about 40ppm obviously these don't cost the network that much but high prices in this area (0845/0870) means lower prices in geographical calls and probably handset prices.

Yes, you're right, these calls are not free to the mobile network, but then neither is any call which is carried off of a mobile network onto a landline, or across mobile networks. Also, bear in mind that it is the recipient of an 0800 call who pays the tariff to the telco. It should be possible to share some of this revenue between the respective telcos in much the same way as they account for carrying other types of calls through eachothers networks.

Yes it may be so that if OFCOM interferes with the mobile companies too much that they might load the costs onto handsets. I don't think the mobile networks have tended to load call prices. Call prices have fallen in general, what with all the bundled minute deals that are available. I can't say I've noticed that the cost of texting is on the increase either.

Again you're probably right in your comment regarding 0845/0870. Telcos love these types of numbers because, as you say, it generates additional revenue when call prices to geographical numbers are falling. At one time users of 0870 etc had to pay for the use of the number and the cost of rental was hefty. Nowadays they give them away happily to anyone who wants them. This is due to the fact that they generate such excellent levels of revenue for the telcos.

A ordinary company will look on the provision of an 0870 number as a positive money generator which it believes will help it to offset some of its outbound call costs. This is a reasoable assumption in the first instance. But when more and more companies adopt this tack then it is the case that all companies then end up paying more to call eachother than they would had they left their normal geographical numbers in place. So then we would have a situation in which only the telcos would benefit. I'm not against the telcos making profit, excessive or not. They are in business to make money and I accept that.

Telcos will look at all sorts of ways for generating revenue when the traditional basket of prices are falling. One good example of this is in the sudden addition of a separate tariff for calling mobile phones that are registered overseas. At one time one simply paid the prevailing country rate to call a mobile phone registered in a foreign domain. Not so today; there is a separate tariff for landline/mobile for most, if not all countries. How did that suddenly need to come about?

seaniboy

Orange and the others pay nothing to carry these calls, the recipent of the 0800 call pays, I used to pay 18p a minute for a 0800 tied to my one2one mobile number

BT could not allow free access from thier landlines and then bill other Telco's because thats monopolising thier market position and thats why all landline providers give free 0800 calls thats what they were designed for!!, the mobile networks choose to charge you and its about time OFCOM got thier finger out and said NO as right now they are living up to thier name and not switched on to the consumer ie....OFF COM

Steve_xx

seaniboy wrote:

Orange and the others pay nothing to carry these calls, the recipent of the 0800 call pays, I used to pay 18p a minute for a 0800 tied to my one2one mobile number

BT could not allow free access from thier landlines and then bill other Telco's because thats monopolising thier market position and thats why all landline providers give free 0800 calls thats what they were designed for!!, the mobile networks choose to charge you and its about time OFCOM got thier finger out and said NO as right now they are living up to thier name and not switched on to the consumer ie....OFF COM

Orange may well have to pay something to carry 0800 calls. If you dial say a BT 0800 number from your mobile, then BT may well charge the mobile operator to convey and deliver that call to the BT terminating number, and BT will also charge the person who is accepting the call. So on this occasion BT get two bites of the cherry! Whereas if a BT landline customer calls a BT 0800 number, then BT would collect the charge from the called party and so on this occasion would get a single bite of the cherry.

Your comment regarding BT and its monopoly is not so. The 0800 calls made on BT's network are not totally free of charge. Rather, they are paid for by the recipient, instead of the calling party.

But I agree with your general view, which I think is that 0800/0808 should be free to the calling party from both landlines and mobiles.

seaniboy

Hey Steve,

Glad you agree about the calling party being able to utilise essentially what these calls mean...FREE!!:)

indeed you are incorrect though RE: BT biting the cherry twice : they only get a portion of the revenue from the call recipent or it would be a monopoly charging twice while no other telco could and so calls to 0800 are free to all calling party telco's

I had this confirmed by a retail area manger for T-mobile in a personal capacity, the networks choose to charge because OFCOM let them, pure and simple we need to bully OFCOM into what us the consumer want

iceburn

Just to tell some people. At one time One2one aka T-Mobile used to have 0800 free as well, when it had those daytime/weekend call tariffs. But that has long since gone. On the mobile/telecom newsgroup it has been discuss about these 0800 calls. And orange "DO" get paid for them, by the operator of the 0800 number. So they are still earning money from them (ie not making a loss). Now their margin will be going down cause whereas say they route a call to Russia for 1p and charge 80p (if I remember their correctly last time I called there.) Therefore making gross profit of 79p per minute. Now the cost of routing a call through an 0800 number is .01p a minute but they get back 2p a minute. Therefore they they are making 1.99p gross profit. That the bigger issue.

pricefighter

I have just heard that Orange will only inform customers on their next bill of this increase, if they have made a freephone call in the last 6 months. Sneaky Blighters!!!! :mad:

seaniboy

pricefighter wrote:

I have just heard that Orange will only inform customers on their next bill of this increase, if they have made a freephone call in the last 6 months. Sneaky Blighters!!!! :mad:

PF i thinks thats not quite right Big O have an legal obligation to inform all customers of the change in the charges & they say so in thier own T&C, they cant just sneek it in or OFCOM will be !!!!ting a ton of bricks on them and so will mse/orange clients demanding cancellation

seaniboy

iceburn wrote:

Just to tell some people. At one time One2one aka T-Mobile used to have 0800 free as well, when it had those daytime/weekend call tariffs. But that has long since gone. On the mobile/telecom newsgroup it has been discuss about these 0800 calls. And orange "DO" get paid for them, by the operator of the 0800 number. So they are still earning money from them (ie not making a loss). Now their margin will be going down cause whereas say they route a call to Russia for 1p and charge 80p (if I remember their correctly last time I called there.) Therefore making gross profit of 79p per minute. Now the cost of routing a call through an 0800 number is .01p a minute but they get back 2p a minute. Therefore they they are making 1.99p gross profit. That the bigger issue.

ICEBURN thanks for clarifying Orange dont pay for these calls, rather they get paid for the "inconvience" of carrying them

And guys now they want to charge you!!

MSE really should start up a 0800/0808 is free campaign for OFCOM to notice

pricefighter

seaniboy wrote:

PF i thinks thats not quite right Big O have an legal obligation to inform all customers of the change in the charges & they say so in thier own T&C, they cant just sneek it in or OFCOM will be !!!!ting a ton of bricks on them and so will mse/orange clients demanding cancellation

It obviously is not the right thing to do.But thats what Orange say the are going to do in a recent E-Mail.(Only notify customers who have made an 0800 call in last six months.)

seaniboy

They cant or legally they are fooked, i would forward that e-mail to OFCOM