Categories
Close
Menu
Menu
Close
Search
Search

Featured Articles

RSS
123

Opinion Articles

Opinion

BT increases fixed-line charges as Mobile Termination Rates fall

Mark

Share:

Print

Rate article:

No rating
Rate this article:
No rating

Mark Bridge writes:

The Terminate The Rate campaign has pretty much run its course. Its aim was to get Mobile Termination Rates reduced. These are the wholesale charges paid when a mobile or fixed-line network connects a call from one of its customers to a rival. Lower MTRs would mean better deals on call charges, the campaign argued.

With Ofcom’s recent announcement that MTRs were going to fall pretty dramatically over the next few years, the campaign is as good as done. I’ll admit to a bit of cynicism when the campaign launched, not least because the European Commission was arguing for the same thing.

The two campaign champions were BT and Three UK. “BT and 3 are working together on a petition that will lower your phone bill by reducing the level of Mobile Termination Rates”. Three, despite having benefited from high MTRs in the past, now wanted them cut. It promised better tariff deals - and, to its credit, it’s delivered.

BT, however, doesn’t appear to be acting so positively. Last year it talked about the benefits of reducing mobile termination rates, saying it would pass the benefit of reduced MTRs onto its customers… but this week, less than a fortnight before UK termination rates drop by over a third, it’s increasing its call charges.

Yes, increasing. The Guardian reports that BT’s UK call charges are going up by 9% at the end of April, with line rental also rising. Millions of consumers will be affected, says The Telegraph.

Hmmm. Perhaps my cynicism about the Terminate The Rate campaign wasn’t quite so misplaced after all. Well done, Three UK. BT, you’ve got some explaining to do.

Comments

Collapse Expand Comments (4)
Mark

BT's press office has called me to point out that its call charge increases were put in place before Ofcom's MTR decision - and that BT has recently confirmed its commitment to providing cheaper landline calls to mobiles. A further BT announcement about fixed-to-mobile call charges is expected in the next few months.

2
0
David

There's more to BT's price changes than simply offsetting their "mobile terminating" losses. Lets be accurate here - none of the providers have to reduce their prices, their costs are just reduced - so their margins are all higher. As with all markets dominated by a single principal organisation everybody else will sit and watch what BT does. If, as expected, BT slash prices and start bundling calls in their packages we can expect smaller resellers to struggle to compete effectively where Mobile calls account for 30% of their total revenue.<br /><br />BT have raised their prices 5, 6 times now in the last two years alone. When you couple in their removal of the £1.25 discount for non-paper billing last year (re-iterated this year) their package costs have increased by close to £3, whilst their calls have added 3p in connection fee alone, and 2 to 3p on UK Landline calls outside of their packages.<br /><br />Much like their "free connection" scam (the one that requires to make 10 calls every month in order to avoid a £5 penalty fee for an unspecified period of time) BT actively misleading with their literature.<br /><br />That they can continue to sell their products advertising their current rates in the knowledge that they are going to be instituting changes so profound to their billing is the icing on the cake.<br /><br />That they have the gall to then attack TalkTalk (along with their Plusnet lackey) for a particular advertising technique that was undeniably accurate unless by contortion you specifically ignored BT's unavoidable billing charge that would allow them to proclaim their Line Rental was but £10 a month....no it's not BT. It's £11.25. The adjudication from the ASA is linked in my profile for those interested in the blatant lies BT had to tell, not least the simple fact that only one form if discount can be taken with any single BT product.<br /><br />If you want to see how insincere Plusnet are about their product, just check out their broadband comparison system and observe how TalkTalk are "hiidden" on a seperate pop-up to conceal the clear "value" disparity.

0
0
InsureThatMobile

Theres just something about bt that i just dont trust there, there are always hidden charges somewhere.<br /> <br />how long will it be untill we dont even need lines with the way the mobile phone industry is going surely sooner or later everything will be done by mobile, you'll just have a house phone with a simcard.<br /><br />i think this is probably why bt are putting in fiber optic cable because they know that line rental can last forever, and as virgine dont charge you any line rental for the optic line then they wont beable to charg us there :D <br /><br />i would start on three but it just too easy although they have opened call centers in the uk i still manage to talk to some one in pakistan.

0
0
Mark

BT has announced it's cutting fixed-to-mobile charges from 28th May - and is planning an "unlimited" tariff for mobile calls as well. <a href="http://bit.ly/lcSjsP" rel="nofollow">bit.ly/lcSjsP</a>

0
0
You don't have permission to post comments.

Recent Podcasts

ExclusiveYahoo! gains a new CEO while RIM loses a patent case and O2 loses service

It's a good week for Yahoo! as it appoints Marissa Mayer - previously Google employee number 20 - to the role of CEO. However, things aren't as cheery at Research In Motion, which has been ordered to pay over $147 million in a patent case.

Meanwhile O2 UK is recovering from a network problem that left around a third of its customers disconnected for almost a day.

ExclusiveMeeGo returns, Samba Mobile offers free mobile data and WiFi starts taking over

There's plenty of variety in The Fonecast this week. We start the podcast with news of MeeGo's resurrection by Finnish smartphone company Jolla before talking about a mobile network that’s giving away mobile data whenever its customers watch video advertisements.

There's also time to discuss Telefonica's recent deals, the rise of free WiFi availability, tablet-related legal action, malware in the Apple App Store and the truth behind a recent 'exploding mobile phone' story.

ExclusiveInterview with Ian Brown, CEO of Axell Wireless

In this special feature we're talking to Ian Brown from Axell Wireless about mobile phone coverage on the London Underground.

WiFi is now available on a number of London Underground stations - so why is it taking so long to arrange mobile phone service on the Tube?

ExclusiveGoogle reveals its tablet, RIM admits delays and the Firefox OS gets closer

This week's edition of The Fonecast takes a look at the new Google Nexus 7 tablet, wonders what's next for RIM and awaits the arrival of the forthcoming Firefox mobile platform.

There's also talk about HTC's partnership with Pioneer, Vodafone's European reorganisation, the new BT WiFi brand, Ofcom complaints, tariff problems and international roaming.

ExclusiveGetting ready for Windows Phone 8, the Amazon Appstore and simpler international roaming

In this week's podcast we're talking about the forthcoming Windows Phone 8 mobile operating system, the UK launch of the Amazon Appstore and the GSMA's plans to make international roaming easier to understand.

There's also time to discuss new mobile tariffs from Virgin Media, cars that call for help after an accident, some mobile shopping research and LG's future as a tablet manufacturer.

RSS
First3031323335373839Last

Follow thefonecast.com

Archive Calendar

«May 2026»
MonTueWedThuFriSatSun
27282930123
45678910
11121314151617
18192021222324
25262728293031
1234567

Archive