back to article Ofcom's campaign against termination rates continues

Regulator Ofcom is taking another step towards the elimination of mobile termination costs. The Mobile Termination Rate is the amount of money a company earns for handling an incoming call. As a result of a 2011 ruling, costs have dropped from around 4p a minute (ppm) to 0.8ppm - a stark contrast from the yuppie days of mobile …

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  1. Anonymous Coward
    Anonymous Coward

    Noooo!

    OFCOM seem to think that lower termination rates would be a good thing for consumers. Unfortunately, as soon as mobile termination rates match landlines, the cold callers and scammers will realise there's a much better chance of a mobile phone being answered than a landline, and it doesn't cost any more to pester people on their mobile, and then where will we be?

    Oi OFCOM! You useless knobs! How about customer-set termination rates, so that I can establish how much it costs to call me, according to the dialling number? Nothing for known friends and family numbers. A very small amount for businesses that need to have my number (again on a permitted number basis). And an arm and a leg for known spammers, number withheld, and international calls (ideally accompanied by a cost per minute that I can levy, perhaps around 70p).

    1. K
      Thumb Up

      Re: Noooo!

      Nah.. It would have happened already as cost of calling mobiles has been dropping year on year for the past 4 years, the rates we paid during this time are approx -

      2010 - 7.8p

      2012 - 3.2p

      2013 - 1.5p

      That not to say there has not been an increase, but phone-mageddon is unlikely.

      The cost of landline calls had dropped slightly during in this period, unfortunately I never paid much attention to these, but probably from about 1.2ppm to 0.5ppm.

      1. Anonymous Coward
        Anonymous Coward

        Re: Noooo!

        "Nah.. It would have happened already "

        I hope you're right mate, but worth considering that the costs of termination on calls to mobiles is still three times that of landlines. With one in eight households now having no landline, the phone pests are seeing the pool of targets shrink, and if termination rates are near enough similar then logic suggests that you start calling mobiles.

        We shall see....

        1. Richard 12 Silver badge
          Thumb Up

          Re: Noooo!

          No, this is a great thing.

          Most landlines don't offer any way of identifying the caller beforehand, while every mobile phone has "Caller ID".

          Almost nobody answers an unexpected "number withheld" call, thus cold-callers will have to start providing a caller-id, making them easier to trace. Furthermore, if they spoof the ID of another company, they can be done for fraud.

          And if they start calling too much, somebody will make an app to blackhole them. Or toy with them...

    2. Alan Brown Silver badge

      Re: Noooo!

      "Oi OFCOM! You useless knobs! How about customer-set termination rates, so that I can establish how much it costs to call me, according to the dialling number? "

      I solved that years ago.

      Friends and family get given my number, everyone else gets a £1.50/min 070 number (remember those?)

      I don't make any money out of it, but I do get a smug satisfaction when I get a cold call coming in via the 070 and an incentive to make the call last as long as possible.

      1. proud2bgrumpy

        Re: Noooo!

        I have an 07050 number too - for much the same reasons. Apart from the extortionate cost of calls to these numbers, many companies also bar them - so the spammers *can't* call you.

        I read about a guy who made £300 from a personal 0871 number that he shared liberally with all the PPI/Loan/Personal Accident spammers read here

  2. Chad H.

    But.... 4G doesnt carry phone calls (yet).

  3. A Non e-mouse Silver badge

    Race to the bottom

    The UK mobile carriers are engaged in a race to the bottom. They're doing all they can to cut costs to reduce tariff prices. But in the process they're cutting money to the rest of the business (customer service, billing, tech support, etc) Even the spend on network upgrades and expansion is as little as they can get away with.

    1. Don Jefe

      Re: Race to the bottom

      Getting rid of a speed bump isn't a race to the bottom. it's a race to a marginally more competitive market. I'm a huge fan of charging as much as absolutely possible for everything, but that doesn't apply to utilities. Communications companies are utilities, no matter how much they'd like you to believe otherwise.

      Termination fees have always been a sideways effort to screw taxpayers. A government makes a big show out of auctioning spectrum, then provides (one of many) ways for the licensees to recoup that investment without actually competing for customers, which is a huge part of the justification for the auctions in the first place: Making a significant investment in spectrum will force competition between licensees.

      It's paying lip service to competititive markets, but undermining the entire premise by reducing the need for competititive strategies amonst licensees. Which is why they've never spent more on infrastructure than they absolutely had to in order to meet the terms of thier licenses, don't buy into the bullshit that they would improve on that if they could. They've got much less reason to be competititive when they can generate revenue from doing nothing more than what they agreed to do in order to participate in spectrum auctions.

      Lastly, there's more wireless (and broadband) infrastructure in the greate Washington D.C. area than in all of England, Scotland, Wales and Ireland combined (really). There's simply zero justification for all the bullshit you guys deal with to be able to communicate with each other. You're getting just absolutely fucked by the service providers and your government and it all, 100% of it, just flies in the face of capitalism, competititive markets and even reason. The coverage area is tiny, there's no rough terrain to speak of and the entire area is already so covered up with incredibly overbuilt primary infrastructure that it's a joke that there should be even a whimper to expand coverage for any communications there.

      If you want better service you're wasting your time hoping the incredibly lazy bastards who run communications services there and your anti-business government are going to do anything towards those ends. One of the best things that could possibly happen to that entire little section of the world would be for the communications companies to collapse, or just vanish. Somebody else could replace it all in less than a year if they wanted to. None of it represents large, or complex infrastructure.

      1. Anonymous Coward
        Anonymous Coward

        Re: Race to the bottom

        "The coverage area is tiny, there's no rough terrain to speak of and the entire area is already so covered up with incredibly overbuilt primary infrastructure"

        Have you ever visited the UK? Or any part of it outside of London and the south-east?

  4. R 11

    Solving telemarketers

    If it were to be a big problem, the solution is for Ofcom to hold the carrier responsible for the CLID. They should trust peers to send a genuine CLID and where there is no trust, refuse to set one.

    Telemarketers can then be blocked by CLID, calls with no CLID can be dumped straight to voicemail and abuse can be traced.

    Reputable VOIP providers will require proof of ownership of the number before it's available as a presentation number. Non-reputable ones will find no-one sees the CLID they set and they'll lose customers.

    1. James 100

      Re: Solving telemarketers

      We need two further steps. 1, prohibit use of CLID-suppression by non-residential lines (or better, have a per-use charge for it: probably 10p or so would be enough to stop abuse by telemarketers without impacting home users). 2. Enforce the existing requirement for networks to allow subscribers to block anonymous calls, and require it to be a non-charged option (better still, make it a free yes/no choice on new lines: "Would you like to accept anonymous incoming calls (Y/N)?" Enough people say 'no' to that, end of telemarketers.

      I'd like to see a short code, like the 7726 you can forward SMS spam to: dial 17726 after a spam call and the caller gets flagged as a spammer by the telco, using the network-level identity (whether they block/hide/fake CLID or not). Anyone reported too often gets investigated and slapped with 6+ figure fines - or in the case of foreign operators, blocked from calling the UK.

    2. Anonymous Coward
      Anonymous Coward

      Re: Solving telemarketers

      You forget that this is a global industry. Ofcom can't mandate what happens outside the UK, and even concerted EU efforts won't stop bad practice elsewhere in the world.

      Under your proposal, pretty much all international calls arriving in the UK would have their CLI flagged as 'untrusted'*. That's not going to help people who receive genuine calls from abroad alongside spam, because you can't set a blanket rule that deals with both scenarios properly.

      * Most international calls don't get carried by former PTTs these days. International minutes are traded anonymously on the telco equivalent of eBay. A call might have passed through mutliple networks before it arrived in the UK and the terminating telco will have zero relationship with the originating telco, they won't even know who it is. A UK telco will only know who is handing the call to them, not where it came from. It would be like making your postman liable for the contents of letters he delivers to you.

    3. A Non e-mouse Silver badge

      Re: Solving telemarketers

      All that blocking calls with no CLI will do, is expand the use of fake CLIs (That's calls which have a CLI that is not a valid dialable number) These usually originate from overseas. OFCOM need to add a rule which says that calls with UK CLI must originate in the UK.

      That way, for most people, you block/ignore anonymous & international calls. I know this isn't perfect, but no anti-spam system is perfect.

      Since anonymous call blocking became a bit more mainstream, I've seen more UK companies transmit some sort of number; Usually a non-geographic number. (The only except being the local police: They insist on sending no CLI. Grrrr....)

      1. Alan Brown Silver badge

        Re: Solving telemarketers

        "Since anonymous call blocking became a bit more mainstream, I've seen more UK companies transmit some sort of number; Usually a non-geographic number. (The only except being the local police: They insist on sending no CLI. Grrrr....)"

        The simple solution to having non-geograpic numbers appear is not to answer them.

        Telcos all offer some form of blocking service (for a price(*)), I do it on my FritzBox for better control.

        (*) The actual cost to telcos for all those "added value services" is ....... nothing at all. They're builtin to the switch software and telcos only charge for them because they can.

        1. Harry Kay

          Re: Solving telemarketers

          Getting regular calls form the local police, eh?

          Hmmm!

      2. Terry Barnes

        Re: Solving telemarketers

        "OFCOM need to add a rule which says that calls with UK CLI must originate in the UK."

        And with that single step you break mobile roaming.

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