Connection fees - Why increasing trend?

aaj123

Why has connection fees by all operators been on an ever increasing trend since the last 5 years (BT's charge is to become 10.9p from Oct and all operators look set to match that)? Is it because use of indirect access providers has become more prevalent and operators are trying to beat the revenue fall by imposing higher connection charges?

Heinz

I think they're trying to get people onto their 'inclusive' calls plans.

mobile48

Can someone explain to me why a 4 second local calls during the day costs me 16p on my BT Unlimited Weekend Plan.

I understand there is a high call set charge with BT of 9.9p but having paid a high set up call why I am then charged 6.1p for a 4 seconds local call.

I make a lot of these calls and BT increases over the last year have hurt badly.

I find it unbelievable to hear that BT intends to put these charges up yet again - I decided to leave on receipt of my last bill.

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I have tried once again to looked up the above on the BT web site and this time found the answer in an unexpected place:

On 1 October 2010 non-inclusive Daytime call charges to all UK* landlines will increase from 5.9p a minute to 6.4p a minute.

The extra 6.1p comes from the 5.9p a minute charge if you assume it does not include VAT at 17.5%. [Update: This is incorrect see below].

Questions:

When did BT do away with local call charges?

When did BT do away with per second billing?

Heinz

mobile48 wrote: »

Can someone explain to me why a 4 second local calls during the day costs me 16p on my BT Unlimited Weekend Plan.

Because you're not using 18185 as recommened by Martin?

If you were, such calls would cost you 5p.

mobile48

Heinz wrote: »

Because you're not using 18185 as recommened by Martin?

If you were, such calls would cost you 5p.

Thanks great reply.

As far as BT is concerned I worked call costs out the wrong way assuming they did not include VAT was wrong.

The 16p comes instead if add up 9.9p + 5.9p = 15.8 and then round it up to nearest penny as BT now does for each call also.

Does this mean the next increase will increase the cost of this 4 second local call to 10.9p + 6.4p = 17.3 rounded up to 18p?

For more information see following PDF document on the BT website:

http://www.productsandservices.bt.com/consumer/consumerProducts/pdf/UKInternationalprices.pdf

Inactive

mobile48 wrote: »

Can someone explain to me why a 4 second local calls during the day costs me 16p on my BT Unlimited Weekend Plan.

Because BT can get away with it, daylight robbery.

Mark_In_Hampshire

Last I read, about 1 in 8 people have abandoned landlines so far.

I guess people are using mobiles more since the costs of landline and mobile are much closer than they ever have been in the past.

If you need a landline for broadband, e.g. you're not in a cabled area, that doesn't mean you'll use it for calls.

The desire is doubtless to get people to sign up for inclusive minutes on contracts that last for a long time, or in perpetuity (auto renewing) so the money rolls in whether it's used or not. The "model" is changing.

Whether this will lead people to sign up for inclusive contracts or simply ditch landlines and use mobiles or VOIP is questionnable. We haven't had or needed a landline for two years.

If we move again, I'll be making certain the new place is cabled or has very good 3G coverage, and we won't need a landline there either.

Edit: see new thread on Zen and be landlines.

Zen also differentiate themselves by not having a minimum call set-up fee (BT charge 9.9p per call) and calls are generally cheaper per minute than BT.

aaj123

Mark_In_Hampshire wrote: »

Last I read, about 1 in 8 people have abandoned landlines so far.

My primary motivation of using my landline (I have got Sky) is to be able to call my home country cheaply at 0.5p per min using 0844 access numbers.

mobile48

Mark_In_Hampshire wrote: »

Last I read, about 1 in 8 people have abandoned landlines so far.

I guess people are using mobiles more since the costs of landline and mobile are much closer than they ever have been in the past.

I came across following recent story that supports this.

http://www.moneyweek.com/personal-finance/moneyweek-saver-dump-your-phone-and-save-160-a-year-49703.aspx