Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • cepheus
    • By cepheus 28th Jun 11, 8:19 AM
    • 19,211Posts
    • 20,338Thanks
    cepheus
    Massive price increases for PAYG users
    • #1
    • 28th Jun 11, 8:19 AM
    Massive price increases for PAYG users 28th Jun 11 at 8:19 AM
    These minimum call charges will increase bills substantially for those who try to minimise use. Answerphones are my bugbear since they exacerbate the 'short call' cost and delayed responses are rarely any use. Always best to turn it off and answer when you can.

    Orange is putting up its minimum call charge for pay-as-you-go customers from 20p to 25p from Friday – a rise of 25 per cent.

    Vodafone, meanwhile, is increasing the minimum call charge on some contracts from 15p to 25p – or 66 per cent. These charges apply to calls made outside of those allowed by a customer’s monthly contract.

    Its pay-as-you-go users will see the cost of a text rise from 10p to 12p, while calls to mobiles and landlines will go up from 21p a minute to 25p.

    The Vodafone increases take effect on July 14.
    They are the latest in a series of increases by the major networks, who had vowed to recoup costs elsewhere if watchdogs in Britain and Europe curbed existing pricing structures.
    Read more: http://www.thisismoney.co.uk/news/article-2008868/Orange-Vodafone-users-hit-mobile-charges-soar-66-cent.html#ixzz1QYZnJbGs
    Last edited by cepheus; 28-06-2011 at 8:27 AM.
Page 1
    • MikeWhite
    • By MikeWhite 28th Jun 11, 9:08 AM
    • 508 Posts
    • 221 Thanks
    MikeWhite
    • #2
    • 28th Jun 11, 9:08 AM
    • #2
    • 28th Jun 11, 9:08 AM
    Indeed, can't wait to get children moved off of Vodafone payg to someone rather cheaper (8p/4p).
    Mike
    • redux
    • By redux 28th Jun 11, 9:12 AM
    • 19,785 Posts
    • 27,535 Thanks
    redux
    • #3
    • 28th Jun 11, 9:12 AM
    • #3
    • 28th Jun 11, 9:12 AM
    Perhaps the networks could have prepared a joint statement to deny there is any collusion on prices.
    • gjchester
    • By gjchester 28th Jun 11, 10:32 AM
    • 5,602 Posts
    • 1,773 Thanks
    gjchester
    • #4
    • 28th Jun 11, 10:32 AM
    • #4
    • 28th Jun 11, 10:32 AM
    These minimum call charges will increase bills substantially for those who try to minimise use.
    Originally posted by cepheus

    Hijacking your post slightly..

    Well someones got to pay for the forced reduction of a termination fee, wondered what would go up.

    Honestly everytime the regulators interfere and force/fix a price "for the consumer good" something else goes up...
    • cepheus
    • By cepheus 28th Jun 11, 5:28 PM
    • 19,211 Posts
    • 20,338 Thanks
    cepheus
    • #5
    • 28th Jun 11, 5:28 PM
    • #5
    • 28th Jun 11, 5:28 PM
    [QUOTE=gjchester;44829822]Hijacking your post slightly..

    Well someones got to pay for the forced reduction of a termination fee[QUOTE]

    Yes it should be the employees and shareholders of the telecoms!

    Hopefully when we can deliver mobile signals via the Internet things will get a lot cheaper and we will get some true competition. This is long overdue.
    • redux
    • By redux 30th Jun 11, 4:51 AM
    • 19,785 Posts
    • 27,535 Thanks
    redux
    • #6
    • 30th Jun 11, 4:51 AM
    • #6
    • 30th Jun 11, 4:51 AM
    Hijacking your post slightly..

    Well someones got to pay for the forced reduction of a termination fee, wondered what would go up.

    Honestly everytime the regulators interfere and force/fix a price "for the consumer good" something else goes up...
    Originally posted by gjchester
    The incoming wholesale termination fee was cut by I believe about 0.7 pence a minute.

    That hardly explains an increase in outgoing retail prices of 5 pence a minute. If it's given as an explanation then it's just naked contempt for the intelligence of the audience.

    The incoming roaming rate in Europe is just about to be cut by 4 cents a minute plus VAT, so probably 3 or 4 pence a minute to probably 11 pence a minute.

    Before the EU regulated roaming rates in Europe, it wasn't unknown for retail incoming rates to be in the order of 80 pence a minute, when actual wholesale cost is in single figures, so a profit margin of over 90% of the price.

    I can specifically remember Orange increasing outgoing rates in for example Poland and Lithuania from 51 to 110 pence a minute from 2003 to 2004. When I objected to this and the fact that they simply didn't bother to inform all customers in advance (for some it was on one month's statement, for others on the next, and there was a gap of about 12 days of statement date where they omitted the announcement completely) they told me Orange was the cheapest for roaming. Not by then, as 1.10 was the most expensive. In 1999 their outgoing rates in some countries like Belgium and France were 30 pence a minute, and in others like Hong Kong and Singapore they were in single figures of pence a minute.

    The networks can do what they want with some rates, but it would be useful if they didn't come up with highly dishonest explanations from time to time, spitefully blaming regulation of some prices for capricious decisions they make on others.
    Last edited by redux; 30-06-2011 at 4:54 AM.
    • roddydogs
    • By roddydogs 30th Jun 11, 6:40 AM
    • 6,427 Posts
    • 2,775 Thanks
    roddydogs
    • #7
    • 30th Jun 11, 6:40 AM
    • #7
    • 30th Jun 11, 6:40 AM
    Gotta pay for its Orange Wednesdays.
    • cepheus
    • By cepheus 30th Jun 11, 7:04 AM
    • 19,211 Posts
    • 20,338 Thanks
    cepheus
    • #8
    • 30th Jun 11, 7:04 AM
    • #8
    • 30th Jun 11, 7:04 AM
    How much do the mobile networks charge the locals in developing countries? It is amazing how so many can afford to use mobiles.

    http://www.simonlydeals.mobi/worldwide-mobile-phone-usage-statistics-by-country
    Last edited by cepheus; 30-06-2011 at 7:07 AM.
    • zagfles
    • By zagfles 30th Jun 11, 8:12 PM
    • 14,633 Posts
    • 13,071 Thanks
    zagfles
    • #9
    • 30th Jun 11, 8:12 PM
    • #9
    • 30th Jun 11, 8:12 PM
    The incoming wholesale termination fee was cut by I believe about 0.7 pence a minute.

    That hardly explains an increase in outgoing retail prices of 5 pence a minute. If it's given as an explanation then it's just naked contempt for the intelligence of the audience.
    Originally posted by redux
    Plus of course the reduction in termination fees means that the networks pay less for terminating x-net calls on other networks, so they make a lot of the lost money back. If it were all UK mobile-mobile calls the net effect would be neutral, but because many calls are from landlines they'll lose some of the subsidy the get from landline callers. About time too.

    Before the EU regulated roaming rates in Europe, it wasn't unknown for retail incoming rates to be in the order of 80 pence a minute, when actual wholesale cost is in single figures, so a profit margin of over 90% of the price.
    They really were so stupidly expensive that they were asking for trouble.

    I can specifically remember Orange increasing outgoing rates in for example Poland and Lithuania from 51 to 110 pence a minute from 2003 to 2004. When I objected to this and the fact that they simply didn't bother to inform all customers in advance (for some it was on one month's statement, for others on the next, and there was a gap of about 12 days of statement date where they omitted the announcement completely) they told me Orange was the cheapest for roaming. Not by then, as 1.10 was the most expensive. In 1999 their outgoing rates in some countries like Belgium and France were 30 pence a minute, and in others like Hong Kong and Singapore they were in single figures of pence a minute.
    Till they realised what a cash cow roaming could be...
  • debutyou
    Orange/Vodafone should be forced to release customers
    Interesting discussion regarding the fact that no notice has been given, and whether Ofcom should force Orange/Vodafone to issue unlock codes for PAYG Phones to allow them to switch away, where customers are dissatisfied, due to the increase being excessive. 25% is excessive!

    "zdnet.co.uk/news/mobile-working/2011/07/04/orange-and-vodafone-go-it-alone-with-payg-price-hikes-40093300/"
    • zagfles
    • By zagfles 5th Jul 11, 3:23 PM
    • 14,633 Posts
    • 13,071 Thanks
    zagfles
    Interesting discussion regarding the fact that no notice has been given, and whether Ofcom should force Orange/Vodafone to issue unlock codes for PAYG Phones to allow them to switch away, where customers are dissatisfied, due to the increase being excessive. 25% is excessive!

    "zdnet.co.uk/news/mobile-working/2011/07/04/orange-and-vodafone-go-it-alone-with-payg-price-hikes-40093300/"
    Originally posted by debutyou
    Or perhaps they shouldn't be allowed to lock phones in the first place, and stop the subsidy of phones through call charges.

    It's even worse with contracts, where the contract monthly amount is almost a loan repayment for the purchase of the phone!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

876Posts Today

6,061Users online

Martin's Twitter