why are phone calls so expensive in UK

iinvestor

in India and china, you can make phone call "locally"( in an area 3 times the size of UK) for 0.8 pence per minute on pay as you go.

In the UK the cheapest pay as you go is 8p per minute. 10 times the cost.


So why are pay as you go phone calls so expensive in UK? Considering most of them have call centres in India. How can they justify such high charges.

Could it be lack of competition. In India/ china they have over ten mobile service providers. Here we only have half that.

Guys_Dad

iinvestor wrote: »

in India and china, you can make phone call "locally"( in an area 3 times the size of UK) for 0.8 pence per minute on pay as you go.

In the UK the cheapest pay as you go is 8p per minute. 10 times the cost.


So why are pay as you go phone calls so expensive in UK? Considering most of them have call centres in India. How can they justify such high charges.

Could it be lack of competition. In India/ china they have over ten mobile service providers. Here we only have half that.

And the average annual income in India is ?????????????????

seaniboy

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Can't really believe Martin does not support it on a sticky !!!!

bubblesmoney

Guys_Dad wrote: »

And the average annual income in India is ?????????????????

yes the average income is low, but that does not explain why the costs here are much higher. especialy because many of the same companies like vodafone operate there too but have call rates for PAYG as low as 1 Rupee per min. (now 73rupee = about 1£, earlier about a year or more ago it was almost 92rupees=1£. some networks offer 50paisa per mins calls as well there. call quality isnt any better or customer service any better to justify so many times the rate the same company charges there). and on contracts the rates are much lower than PAYG plans. the area covered is much larger too. calls to mobiles are cheaper than land lines on many networks. it is so cheap that it is essential for even people having small vegetable vendor shops or hand carts as they get the best rates for their supplies over the phone. all phones are unlocked, most contracts are just for minutes without free phones and hence dont add to the mountains of unused mobile phones in dumping grounds. spare parts for many popular phones are cheap.

macman

I think you've put your finger on it there. In the UK, the consumer has grown used to getting a new phone every year or two, and these are increasingly expensive as the technology develops. If you are getting a 'free' or subsidised £500 phone, then somehow your contract has to recover that cost over the duration.
I suspect that the majority of contract users have no idea of the real cost of the phone.

vikramrkin

macman wrote: »

I think you've put your finger on it there. In the UK, the consumer has grown used to getting a new phone every year or two, and these are increasingly expensive as the technology develops. If you are getting a 'free' or subsidised £500 phone, then somehow your contract has to recover that cost over the duration.
I suspect that the majority of contract users have no idea of the real cost of the phone.

yes, but that doesnt explain the high cost of calls on PAYG. I think mobile phones in UK and most of the major EU countries are ridiculously priced.

One argument here was that cost of living in india is much lower and hence the low mobile charge. What about US then? they have very low call costs even on mobiles. From skype, if I have to call US mobiles, its around 2 cents. Where as calling UK mobile is around 10-15 pence. Whats the reason for such difference?

I have always had this question from the time I have come to UK, but have never found the answer so far. Thanks to OP as atleast the discussion has strted now

robt_2

vikramrkin wrote: »

yes, but that doesnt explain the high cost of calls on PAYG. I think mobile phones in UK and most of the major EU countries are ridiculously priced.

One argument here was that cost of living in india is much lower and hence the low mobile charge. What about US then? they have very low call costs even on mobiles. From skype, if I have to call US mobiles, its around 2 cents. Where as calling UK mobile is around 10-15 pence. Whats the reason for such difference?

I have always had this question from the time I have come to UK, but have never found the answer so far. Thanks to OP as atleast the discussion has strted now

Don't you have to pay to RECEIVE calls and texts too though?

macman

'yes, but that doesnt explain the high cost of calls on PAYG'

I would hazard a guess that the networks are ensuring that PAYG users are subsidising contract users with their new iPhone 4's etc.

bubblesmoney

robt wrote: »

Don't you have to pay to RECEIVE calls and texts too though?

i guess that would be the fairest way for charging as people will use the network for both calling and receiving calls or texts. why should anyone cross subsidise another persons use of the network.

Robert2009

Don't you have to pay to RECEIVE calls and texts too though

i guess that would be the fairest way for charging

Why is it fair to pay for a phone call that could be a sales call or nuisance call?

The minute I have to pay to receive a phone call is the minute people have to start using email or Royal Mail to contact me.

Then that is probably when the postie will knock on your door and ask you to pay for the letter he has in his hand.

bubblesmoney

Robert2009 wrote: »

Why is it fair to pay for a phone call that could be a sales call or nuisance call?

The minute I have to pay to receive a phone call is the minute people have to start using email or Royal Mail to contact me.

Then that is probably when the postie will knock on your door and ask you to pay for the letter he has in his hand.

obviously i meant personal calls and not business calls. they need to find a way to make business and marketting calls to cost double for the calling party and exemplary fines if calls are made to numbers registered on the 'telephone preferential service' facilty that is supposed to bar marketting calls.