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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 15th Mar 11, 10:16 AM
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    Former MSE Helen
    MSE News: Calls to mobile phones are set to become cheaper
    • #1
    • 15th Mar 11, 10:16 AM
    MSE News: Calls to mobile phones are set to become cheaper 15th Mar 11 at 10:16 AM
    This is the discussion thread for the following MSE News Story:

    " Telecommunications watchdog Ofcom today rules that calls to mobiles from landlines and other networks will be cheaper ..."

Page 1
    • gjchester
    • By gjchester 15th Mar 11, 10:53 AM
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    gjchester
    • #2
    • 15th Mar 11, 10:53 AM
    • #2
    • 15th Mar 11, 10:53 AM
    Great, so what bit of my current plan will go up to compensate for the networks loss of income.
  • Heyman
    • #3
    • 15th Mar 11, 11:39 AM
    • #3
    • 15th Mar 11, 11:39 AM
    Probably inclusive minute deals etc will either get worse or become more expensive.

    More fiddling by Ofcom, I wonder how many years it took them to get to this decision? Keeps a few people in a job I suppose
    • callum9999
    • By callum9999 15th Mar 11, 11:55 AM
    • 3,950 Posts
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    callum9999
    • #4
    • 15th Mar 11, 11:55 AM
    • #4
    • 15th Mar 11, 11:55 AM
    Probably inclusive minute deals etc will either get worse or become more expensive.

    More fiddling by Ofcom, I wonder how many years it took them to get to this decision? Keeps a few people in a job I suppose
    Originally posted by Heyman
    Not necessarily. They lose income from incoming calls, but that therefore means they have to pay the other networks a lot less for the outgoing calls.
    • Lum
    • By Lum 15th Mar 11, 12:02 PM
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    Lum
    • #5
    • 15th Mar 11, 12:02 PM
    • #5
    • 15th Mar 11, 12:02 PM
    Just FYI, the link on the sidebar on the forums goes here instead of the URL in the first post. This lands you at a page not found error. This is probably due to the space before the ? in the URL.

    Edit: Fixed now.
    Last edited by Lum; 15-03-2011 at 5:12 PM.
    • gjchester
    • By gjchester 15th Mar 11, 12:36 PM
    • 5,603 Posts
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    gjchester
    • #6
    • 15th Mar 11, 12:36 PM
    • #6
    • 15th Mar 11, 12:36 PM
    Not necessarily. They lose income from incoming calls, but that therefore means they have to pay the other networks a lot less for the outgoing calls.
    Originally posted by callum9999
    Sorry but if you think something won't go up to compensate your joking.

    The EU stuck there oar in to lower roaming cost, and we lost competitive 12 month tarrifs, They reduced text charges when abroad, we got moved to fixed bundles of data, and charged for the excess. Mobile companiues are shareholder driven, not consumer driven.

    Sorry but your monthy will WILL NOT come down over this, it will just push up company profits and hence shareholder value.
    • callum9999
    • By callum9999 15th Mar 11, 3:43 PM
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    callum9999
    • #7
    • 15th Mar 11, 3:43 PM
    • #7
    • 15th Mar 11, 3:43 PM
    Sorry but if you think something won't go up to compensate your joking.

    The EU stuck there oar in to lower roaming cost, and we lost competitive 12 month tarrifs, They reduced text charges when abroad, we got moved to fixed bundles of data, and charged for the excess. Mobile companiues are shareholder driven, not consumer driven.

    Sorry but your monthy will WILL NOT come down over this, it will just push up company profits and hence shareholder value.
    Originally posted by gjchester
    I didn't say anyones bill will get cheaper, I'm just pointing out it's not exactly a drastic cut in income to them. They get a lot less from other networks, but they have to pay other networks a lot less.

    Of course it won't get cheaper, and maybe it will get more expensive. All I'm saying is it isn't necessarily going to be a huge increase. Plus it's a bit naive to directly link EU roaming cuts to losing 12 month contracts, that was always going to happen. Just like 24 months is creeping into the mainstream and 36 month contracts are starting to be introduced. Especially as the phones themselves cost upwards of 500 nowadays.

    The point isn't to simply get more money, it's to keep people on their network. It's easier than ever to switch networks and take your number with you, they want you locked in as long as possible.
    Last edited by callum9999; 15-03-2011 at 4:01 PM.
    • Stuart_W
    • By Stuart_W 15th Mar 11, 4:16 PM
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    Stuart_W
    • #8
    • 15th Mar 11, 4:16 PM
    • #8
    • 15th Mar 11, 4:16 PM
    Lower termination charges should, in theory, work in favour of smaller companies. The major three companies have such huge market share each that they can near-enough cancel out termination charges paid out with termination charge income received. With a smaller operator, this won't be the case.

    By the time it is actually reduced to the 0.69p it will eventually become, calling will become a minority-feature of mobile phones (if it isn't already).

    Anyone heard of any price cuts yet?
    • simax
    • By simax 15th Mar 11, 4:24 PM
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    simax
    • #9
    • 15th Mar 11, 4:24 PM
    • #9
    • 15th Mar 11, 4:24 PM
    Surely if a mobile network charges for 10 million minutes a month incoming, but has to pay out for 10 million minutes outgoing... then it does not matter if the termination rate is 1p a minute or 1,000 a minute, as the net balance is zero?!?

    What you haven't factored in is if the networks pass on the savings (which they probably won't), so they'll make more money on x-net calls than they do now.

    FWIW, O2's tariff refresh that happens in the next 2 weeks will see call charges out-of-bundle go up from 20.4p/min to 35p/min (including same network and landlines). How can they justify this now?
    I say it as it is - you may not like that but what would you prefer? A string of false platitudes that are no help whatsoever just to make you feel better? If my advice has helped, please press the Thanks button over here ----------------V. Cheers
    • zagfles
    • By zagfles 15th Mar 11, 9:33 PM
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    zagfles
    Surely if a mobile network charges for 10 million minutes a month incoming, but has to pay out for 10 million minutes outgoing... then it does not matter if the termination rate is 1p a minute or 1,000 a minute, as the net balance is zero?!?
    Originally posted by simax
    But it's not just other mobile networks it's landlines as well - the mobile operators charge far more for terminating inbound calls from landlines than they pay out for terminating outgoing calls to landlines, so they make a net profit.

    The biggest effect of this will be lower landline to mobile prices, and stopping the current subsidy mobile users are getting from landline users. In 2014 when the mobile termination rate is similar to the landline termination rate there'll be no excuse not to include mobiles in the unlimited call packages all the landline telcos offer.

    FWIW, O2's tariff refresh that happens in the next 2 weeks will see call charges out-of-bundle go up from 20.4p/min to 35p/min (including same network and landlines). How can they justify this now?
    Most "inclusive minutes" tariffs are similar - they want you to buy far more minutes than you normally use so you end up wasting them.
    • zagfles
    • By zagfles 15th Mar 11, 9:36 PM
    • 14,251 Posts
    • 12,417 Thanks
    zagfles
    Sorry but if you think something won't go up to compensate your joking.

    The EU stuck there oar in to lower roaming cost, and we lost competitive 12 month tarrifs, They reduced text charges when abroad, we got moved to fixed bundles of data, and charged for the excess. Mobile companiues are shareholder driven, not consumer driven.

    Sorry but your monthy will WILL NOT come down over this, it will just push up company profits and hence shareholder value.
    Originally posted by gjchester
    The overall cost won't change but it will stop them ripping off one lot of people to subside another. Like with roaming charges which were (and still are) a complete rip-off in most cases.
    • advice_please
    • By advice_please 5th Apr 11, 11:33 AM
    • 455 Posts
    • 54 Thanks
    advice_please
    why is it called termination charge?
    • gjchester
    • By gjchester 5th Apr 11, 12:24 PM
    • 5,603 Posts
    • 1,773 Thanks
    gjchester
    why is it called termination charge?
    Originally posted by advice_please
    It's the charge made by the network that terminate the call, ie the one the person you are calling is on.

    Historically not all networks charge the same rate , O2 and Vodafone have one rate, TM/Orange another, and three a third rate. If memory serves right three get the least per minute as a termination charge with VF/O2 getting the most, so it's in Threes interest to get it reduced or at least harmonised.
    • redux
    • By redux 5th Apr 11, 3:15 PM
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    redux
    . If memory serves right three get the least per minute as a termination charge with VF/O2 getting the most, so it's in Threes interest to get it reduced or at least harmonised.
    Originally posted by gjchester
    No, Three had the highest fees for incoming calls to their network, which is part of what made their TerminateTheRate campaign so disingenuous
    • redux
    • By redux 5th Apr 11, 3:16 PM
    • 19,360 Posts
    • 26,583 Thanks
    redux
    This is the discussion thread for the following MSE News Story:

    " Telecommunications watchdog Ofcom today rules that calls to mobiles from landlines and other networks will be cheaper ..."
    ]
    Originally posted by MSE Helen
    Has anyone stuck out their neck yet and asked when BT will be cutting its rates for calling to mobiles?

    Or to come to another point, will BT be cutting its vastly higher wholesale charges to mobile networks for connecting calls to 0845 and 0870 numbers?
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