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Callers will no longer pay a premium for calling mobile numbers from landlines.

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Ian011
Ian011 Posts: 2,432 Forumite
Fifth Anniversary 1,000 Posts Name Dropper
edited 7 March 2016 at 4:11PM in Phones & TV
When you make a call from a landline or mobile to someone on a different network, your provider has to pay out a termination fee to that other network. This pays them to deliver the call to the recipient. This payment is the reason why we do not pay for incoming calls.

Various commercial arrangements mean that the termination rate varies depending on which network you are calling, but Ofcom has set maximum limits in all cases. Those rates are capped as follows...
  • geographic numbers starting 01 and 02 - up to 0.21p per minute
  • non-geographic numbers starting 03 - up to 0.56p per minute
  • mobile numbers starting 071-075 and 077-079 - up to 0.68p per minute (1 May 2015 - 31 March 2016).
These low rates enable providers to offer inclusive allowances with a huge number of minutes for just a few pounds per month, e.g. if you make a thousand minutes of calls to landline numbers your provider has to pay out up to £2.10. Make a thousand minutes of calls to 03 numbers and your provider has to pay out up to £5.60.

The maximum rates for premium rate numbers are as follows...
  • 084 - up to 7p per minute or per call
  • 087 - up to 13p per minute or per call
  • 09 - up to £6 per call and/or up to £3.60 per minute.
This part of the call cost is separately declared as the Service Charge and these high rates explain why calls to 084, 087 and 09 numbers are not generally inclusive in allowances. Make a thousand minutes of calls to 087 numbers and your provider has to pay out up to £130.


During the 1990s, the Termination Rate for calls to mobile numbers was more than 25p per minute. On mobile phones, deals with inclusive allowances covered only calls to landline numbers and to mobile numbers on the same network. Calls from mobiles to mobiles on other mobile networks were extortionate. Calls from landlines to mobiles were extortionate. Mobile networks were being subsidised by calls made from landlines.

As the Mobile Termination Rate started to fall, mobile providers began offering deals with inclusive calls to other mobile networks. These deals excluded various numbers, such as...
  • UK mobile networks with higher than usual termination rates (e.g. Lyca)
  • offshore mobile networks in Jersey, Guernsey and Isle of Man because their termination rates were substantially higher
  • 'non-mobile' services such as call-forwarding and other automated services where the high termination rate funded provision of the service
  • personal numbers starting 070 where the service is funded from the extortionate termination rates.
By 2009, the Mobile Termination Rate for the main UK networks had fallen to around 4p per minute and Ofcom intervened in the market to force further reductions. These annual reductions usually took effect on 1 April but applied only to calls made to numbers on the main mobile networks. Other networks were told to set 'fair and reasonable' termination rates for incoming calls.

The lower termination rates set by the main mobile networks led to substantial increases in call allowances on mobile phones. They eventually also saw landline operators starting to offer reduced price or inclusive calls to standard UK mobile numbers. The number of UK mobile networks setting high termination rates reduced but a small number held out and remained non-inclusive when called from other networks. Offshore 07 mobile numbers, 'non-mobile' 07 numbers and personal 070 numbers retained their high termination rates and remained non-inclusive.


The most recent change in mobile termination rates took effect on 1 May 2015 and reduced the figure to 0.68p per minute. Crucially, the cap was extended to cover all UK mobile numbers starting 071-075 and 077-079. This reigned in the last few non-compliant UK mobile networks as well as effectively abolishing the 'non-mobile' 07 numbers category at a stroke.

The next MTR reduction takes place on 1 April 2016. This reduces the figure to 0.51p per minute. This figure is lower than the termination rate for calls to 03 numbers. This is the point where landline operators should routinely offer inclusive calls to standard UK mobile numbers. Sky and Virgin Media already do and TalkTalk offers an add-on.

The changes mean that calls to standard UK mobile numbers should henceforth be charged exactly the same as calls to both standard UK landline numbers and 03 numbers and count towards inclusive allowances in the same way.

You'll still need to be wary of offshore 07 mobile numbers and personal 070 numbers.

Almost a year after the reason for their existence was abolished, several mobile networks still have a separate 'non-mobile' services category with higher call charges for certain mobile prefixes.

Comments

  • The next MTR reduction takes place on 1 April 2016. This reduces the figure to 0.51p per minute. This figure is lower than the termination rate for calls to 03 numbers. This is the point where landline operators should routinely offer inclusive calls to standard UK mobile numbers. Sky and Virgin Media already do and TalkTalk offers an add-on.

    The changes mean that calls to standard UK mobile numbers should henceforth be charged exactly the same as calls to both standard UK landline numbers and 03 numbers and count towards inclusive allowances in the same way.

    Fine in theory but in practice...
    Almost a year after the reason for their existence was abolished, several mobile networks still have a separate 'non-mobile' services category with higher call charges for certain mobile prefixes.

    Because they are thieving scum.
  • onomatopoeia99
    onomatopoeia99 Posts: 7,160 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Because they are thieving scum.
    Best not to give them your money then. No-one compels you to own or use a mobile telephone.
    Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 2023
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