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4/20/2012

Pricing policies for non-geographic calls




Pricing policies for non geographic calls Pricing policies for non geographic calls Existing regulations require customers to pay different prices for calls to the same numbers, when using different OCPs. During the December 2010 Consultations, they collected information in relation to pricing policies of OCPs regarding non-geographic calls and the degree to which they are charged within a bundle of inclusive minutes. Price of non-geographic calls varied significantly in comparison to the price of geographic calls. Price variations between number ranges and OCPs also existed.


OCPs responded differently when they were asked about their pricing policy towards NGCs. Some of considers cost recovery on every non-geographic number range separately while others does not consider NGCs as important. When it comes to setting prices, different approaches are adopted by Fixed and mobile OCPs. The approaches vary especially in cases when it comes to charging non-geographic calls. For some OCP, revenue share arrangements on few number ranges were the reason why NGCs were outside bundles of inclusive (free) call minutes.


Few actual price changes support pricing policy and consumer attitudes. BT has included 0845 calls to its call plans in 2009. The change didn’t bring any change in consumer attitude as a single price change alone is not sufficient. BT said that it is difficult to identify effect on VFM [value for money] perceptions. Making calls to geographic and mobile numbers is included in the bundle of inclusive (‘free’) minutes for post-pay mobile consumers. In the case of Pre-pay consumers, amount is charged for making calls to geographic or mobile number. OCPs were asked to provide data on these two categories.


As per the responses, non-geographic calls were generally charged ‘out of bundle in 2009. Mobile calls to 03 numbers were the main exemption, nearly all of which were integrated within the bundles. This suggests a need that calls to this number range be priced same as calls to geographic numbers. A few mobile calls were included within the bundle. In 2009, calls to the 0845 and 0870 number range were likely to be within the bundle for fixed OCP.


OCPs were asked to provide updated figures on quantity of 080, 0845 and 0870 calls that were ‘in bundle’ in October 2011. The result suggests a slight increase in the proportion of 0845 and 0870 calls ‘in bundle’. A significant rise in the proportion of 080 calls ‘in bundle’ was witnessed. The increase is due to making 080 calls free instead of including 080 calls within the bundled of call minutes.




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