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Why are set up fees so expensive?

I've noticed that over the last few years the set up fee per call has more than doubled from 4.5p per call to 9.25p. I thought the increasing competition in the telecomms market was supposed to drive down costs.

I'm being forced from Tiscali (when it was working, it was great) to TalkTalk.

What are others' experience?
I wanna be Mortgage Free by February 2013

Comments

  • Old_Git
    Old_Git Posts: 4,751 Forumite
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Cashback Cashier
    edited 7 February 2010 at 2:15PM
    use 18185 if you are not barred
    much cheaper than all the set up fees
    "Do not regret growing older, it's a privilege denied to many"
  • Heinz
    Heinz Posts: 11,191 Forumite
    Part of the Furniture Combo Breaker Car Insurance Carver!
    As you're now with Talk Talk, it's likely using the 18185 prefix will be barred.

    However, you can still use their freephone gateway number 0808 1 703 703.
    Time has moved on (much quicker than it used to - or so it seems at my age) and my previous advice on residential telephony has been or is now gradually being overtaken by changes in the retail market. Hence, I have now deleted links to my previous 'pearls of wisdom'. I sincerely hope they helped save some of you money.
  • savemoney
    savemoney Posts: 18,125 Forumite
    Part of the Furniture 10,000 Posts
    I use 18866 from onetel (Talk Talk) and no problems with it
  • Buzby
    Buzby Posts: 8,275 Forumite
    They do it, because they CAN. Similarly, they can bill by the second - but they don't now (because they can make more money for nothing by rounding).

    We're supposedly too stupid to notice.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Buzby wrote: »
    We're supposedly too stupid to notice.
    That's quite likely .... I don't even understand what this thread's about, to be honest.
    I've no idea what a setup fee is ... or on what ... why ... when.
  • Buzby
    Buzby Posts: 8,275 Forumite
    That's quite likely .... I don't even understand what this thread's about, to be honest.
    I've no idea what a setup fee is ... or on what ... why ... when.

    It is a charge made for successfully connecting the call to the distant end. Previously, you could call, the far end answers and you say - "I'll be over in 10 mins". A duration of 2 seconds, and charged, perhaps 0.5p (half a new penny). With the connection charge, you get hit with 9.5p for the connection, and (say) 4p per minute, so that same call now costs you 13.5p. An expensive hike!
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