Premium Charges for Mobiles Set to End

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Ofcom has released a draft version of a statement outlining plans to remove the distinction between the cost of calling landlines and mobile phones.

The proposed changes are intended to significantly reduce the Mobile Termination Rate – currently charged to those making a call from a landline to a mobile phone, as a fee for connecting the call. This rate is paid by the telephone companies when placing calls to mobile phones – and is a cost that is passed on to their customers.

While mobile-to-mobile and landline-to-landline calls do not incur this charge, the Mobile Termination Rate has for many years penalised those wishing to ring a mobile phone from their landline. With many landline customers receiving phone bills documenting and charging for each call made to a mobile phone – with the premium charges attached.

“We welcome the changes Ofcom are going to introduce,” said Martyn King at Nexbridge. “We don’t think hitting consumers with huge service charges for pure profit is acceptable, and any change that makes it easier for consumers to understand the charges they can incur should be embraced by the industry.”

This necessity has since become more of a nuisance

In the early days of the mobile phone industry, the Mobile Termination Rate was (to some extent) a necessity – subsidising the industry with the much-needed capital companies needed to establish themselves.

Yet, as the industry has grown, it has become much less of a necessity and much more of an inconvenience – complicating the calling process for everyone involved.

Ofcom has gradually reduced the fee over the last few years. However, the current proposal marks a step forward in almost equalising the cost of these calls and simplifying the calling process.

While it is a relatively simple matter to resolve, the length of detail found in the draft statement is necessary to convince the European Commission of the need for these changes, as there are some concerns that they will conflict with EU Competition Law.

Contact centres won’t have to worry so much about customer call-backs

The impact on contact centres is expected to be minimal, as a lot of businesses already buy their airtime at wholesale prices and so are unlikely to notice any change in their calling costs.

David Hickson

David Hickson

The main area where contact centres could see a benefit is with customer call-backs. This is because, rather than having to ask for a landline number to help keep costs down, they will be free to ask for any number (including a mobile number) – making their services more convenient for their customers.

“We are celebrating this as a move in the right direction and are looking forward to a day when calls to mobiles will be no different from calls to landlines,” said David Hickson of The Fair Telecoms Campaign. “While many will be speculating the impact these changes may have, the overall result will be simplicity.”

What do you think about these proposed changes?

Author: Megan Jones

Published On: 11th Feb 2015 - Last modified: 18th Dec 2018
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