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Ofcom Consultation: Deregulation of BT prices (Read 53,348 times)
NonGeographicalMan
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Re: Ofcom Consultation: Deregulation of BT prices
Reply #45 - Jul 22nd, 2006 at 9:30am
 
I think darkstar is one of those annoying company saps you find in call centres who simply accepts like a sponge any ridiculous excuse the company puts out to justify any of its actions.

Also he claims BT Wholesale and BT Retail are separate operations.  The reality is that there is only BT plc with one share price and that BT Wholesale and BT Retail each have a Director on BT PLC's board.

BT Retail complains they make almost no profit on BT Option 1 because BT Wholesale charges them almost as much as they pay to BT Wholesale but BT Wholesale does very niclely indeed on this hugely expensive line rental charge and it comprises a significant part of BT's total revenues.  For other phone operators like the PostOffice, TalkTalk etc the line rental is just a total loss area on which they make no profit.  That is why unlike BT they cannot afford to offer free Caller Display.  In other forms of business the cost of a wholesale product to business is usually much less than 90% of what it sells the service to the customer for

The only reason BT claims its quarterly line rental needs to be so high is because it ascribes a huge value to its often 20 to 50 year old exchange buildings and trunk cables.  If they were valued realistically on the basis they were nearly life expired then such a high quarterly rental of £33 for phone compared to £5.50 to £11 quarterly standing charge for gas, electricity and water could not be justified.

Price controls should be maintained over BT because they still have so much of the market and so many customers still have a touching faith that big blue BT are nice chaps and treats them well.  If price controls are not maintained BT's share of the uk telecoms marketplace will never fall to below 50% as it needs to do before price controls on them are removed.
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« Last Edit: Jul 22nd, 2006 at 9:34am by N/A »  
 
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darkstar
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Re: Ofcom Consultation: Deregulation of BT prices
Reply #46 - Jul 22nd, 2006 at 10:41am
 
Quote:
I think darkstar is one of those annoying company saps you find in call centres who simply accepts like a sponge any ridiculous excuse the company puts out to justify any of its actions.



Thats fine, I think you are one of those annoying idiots who assume that a company cant ever do anything right and feels the need to insult anyone who doesnt agree with them or assume that the world is a rip off.  Roll Eyes

I have freely agreed that some of the things put forward by BT have been a rip off, Im not stupid enough to think otherwise. But I joined this forum as I assumed that it would have people on it who were concerned with getting a good deal and debating the pros and cons of certain providers (including BT), hell the guy who asked me to join said specificly that he wanted the view of a BT worker in here.

maybe, just maybe you should get your head out of your backside and learn to realise that the economics of the world are NOT based around what little you think you know.


But I thank you for your warm welcome to the forum and I hope that the little information I did debate with was instructive to some of you before idiot man here decided he would be the be all and end all of knowledge.

Oh, and Wholesale and Retail are seperate in that Retail do NOT get any benefits from being part of the BT group. I work from inside the company, I see how the interaction between them goes. I hate the job and am happy to slate them until the cows come home, but at least I can do so without making assumptions that fit only my worldview.

Oh, and if you had bothered to find out anything about me you would find I am a highly intelligent person who is able to discuss a wide range of subjects with ease. I am not easily taken in by anything or anyone. Hell how many of these annoying saps can discuss Commedia Dell Arte with an expert? Or debate the reasons and morals of Hitler and his actions (not that either of those are any use on this forum mind) for example?

Edited fopr my awful spelling. Damn dyslexia. Sad
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« Last Edit: Jul 22nd, 2006 at 10:49am by darkstar »  
 
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farci
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Re: Ofcom Consultation: Deregulation of BT prices
Reply #47 - Jul 22nd, 2006 at 1:03pm
 
darkstar wrote on Jul 22nd, 2006 at 10:41am:
Quote:
I think darkstar is one of those annoying company saps you find in call centres who simply accepts like a sponge any ridiculous excuse the company puts out to justify any of its actions.



Thats fine, I think you are one of those annoying idiots who assume that a company cant ever do anything right and feels the need to insult anyone who doesnt agree with them or assume that the world is a rip off.  Roll Eyes

I have freely agreed that some of the things put forward by BT have been a rip off, Im not stupid enough to think otherwise. But I joined this forum as I assumed that it would have people on it who were concerned with getting a good deal and debating the pros and cons of certain providers (including BT), hell the guy who asked me to join said specificly that he wanted the view of a BT worker in here.

maybe, just maybe you should get your head out of your backside and learn to realise that the economics of the world are NOT based around what little you think you know.


But I thank you for your warm welcome to the forum and I hope that the little information I did debate with was instructive to some of you before idiot man here decided he would be the be all and end all of knowledge.

Oh, and Wholesale and Retail are seperate in that Retail do NOT get any benefits from being part of the BT group. I work from inside the company, I see how the interaction between them goes. I hate the job and am happy to slate them until the cows come home, but at least I can do so without making assumptions that fit only my worldview.

Oh, and if you had bothered to find out anything about me you would find I am a highly intelligent person who is able to discuss a wide range of subjects with ease. I am not easily taken in by anything or anyone. Hell how many of these annoying saps can discuss Commedia Dell Arte with an expert? Or debate the reasons and morals of Hitler and his actions (not that either of those are any use on this forum mind) for example?

Edited fopr my awful spelling. Damn dyslexia. Sad


Darkstar - on behalf of other forum members let me apologise for this ill-considered and insulting reply.


~Edited by bbb_uk
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« Last Edit: Jul 22nd, 2006 at 1:47pm by bbb_uk »  
 
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Dave
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Re: Ofcom Consultation: Deregulation of BT prices
Reply #48 - Jul 22nd, 2006 at 2:55pm
 
Firstly, darkstar, I would like to apologise for the comments about you by NonGeographicalMan.

darkstar wrote on Jul 22nd, 2006 at 8:45am:
1.   Line rental on BT Together Option 1 from £10.50 to £11.00 per month: £11 is STILL operating at a loss, we are trying to drag back some of the money we are losing on this package. Basic laws of economics surely? If I ran a buisness I wouldnt want to sell by products at a loss....

But the price BT Retail pays is the one BT Wholesale sets. Thus, if BT Wholesale makes a profit and BT Retail does not, then BT as a whole is still profitting. Indeed, its competitors like TalkTalk are put into the same boat as BT Retail, i.e. they pay the same amount for their service and have to compete. So perhaps it's in BT's interest for the profit to be in BT Wholesale rather than BT Retail. The thing is though, putting whether they are making a loss or a profit aside for a moment, these price increases must surely make BT more profitable at the direct expense of Joe Public.

Getting back to the making a loss thing; the other side of the coin is that companies charge far more than it actually costs them for a service. For example, a pair of Nike trainers that retail at £80 don't cost anywhere near that to manufacture. It's the name that's being paid for.

So when services like the call return element of 1471 or caller display are charged at an exorbitant amount, I feel that we are being held to ransom by greedy companies just out for profit.

The competition, we have been told, will reduce prices. But I do not believe that this is what is happening one bit. Granted, inflation is always a factor, but that does not excuse the introduction of charging for elements that were previously free. They also seem to have plenty of money to throw at marketing people to create illusions that prices are being simplified and that they are making such changes after consulting the customer.

Quote:
4.   Evening/weekend rate after 1 hour from 1p to 3p per minute: Seriously....such a petty point! How many people talk for that long without hanging up and re-dialling? We even tell them that when they go onto the packages.

But in BT's effort to "simplify" packages, you can tell them that until the cows come home! The elderly, especially, do not understand that certain calls are not charged according to their length. Trying to explain that you have to redial after an hour means little to my Grandma. Inflating the pence per minute after 1 hour by 300% is an underhand way of profiting after establishing this particular part of the tariff.

Another such example is BT Together, which originally charged all calls on a per minute basis. For the equivalent of £1.80 per month over BT Standard, you could have BT Together rates. Then evening and weekend geographical calls were made 6p for upto 1 hour. So short calls (lasting less than 2 minutes) were actually cheaper in the daytime! Now it became clear as to why BT Answer 1571 and other answering services could be provided for 'free'. With the new BT Together, the inclusive call time was quietly dropped. The marketing people obviously forgot to make a song and dance about the removal of £2.40 worth of inclusive call time that was present in the old BT Together.

I felt that this was a very underhand way of slipping in a price increase for those who used the phone less. And by keeping the name of the package, people would have felt comfortable with it; that prices were being simplified/reduced, when that wasn't necessarily the case. As competition has taken hold, this has set the tone for the types of illusions created by the whole industry.

In a similar fashion, it meant that the terms "peak" and "off-peak" could not be used, as a "peak rate" is, by definition, higher than an "off-peak" rate. Again, how many people have cottoned on to this?
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« Last Edit: Jul 22nd, 2006 at 2:58pm by Dave »  
 
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Re: Ofcom Consultation: Deregulation of BT prices
Reply #49 - Jul 22nd, 2006 at 2:55pm
 
Quote:
6.   Minimum call charge on public payphones from 20p to 30p: maybe that 20p wasnt enough to cover the cost of the upkeep?

I can understand that with the decline in public payphone usage due to mobile phones, that this must go up. It's an unfortunate side effect. However, answering services that kick in when the caller doesn't want to leave a message now costs 30p! See this recent thread where the OP's daughter used up her last change on an answerphone to request a lift late at night. This is obviously a matter of personal safety and the inability to call a number with an answering service on and 'opt-out' of it metering is only what is to be expected.

No profiteering telco will do anything about this, even though it's probably technically possible. I firmly believe that the telecommunications industry in its current state is a blank cheque to any 'enterprising' business person. It should be not for profit or the regulator should enforce some basic moral principles, like the caller should not have to pay for the decision of the receiver to have voicemail on the line. Either way, I do seriously wonder how much better off we all are, and how much we, the citizen-consumers, are actually paying.

Statistics can be made to show whatever one wants them to show. I know that I must now pay £11 per month, when I used to pay £7.35 on BT Standard. That's a 50% increase in two years! It's a case of making it cheaper for higher users so that they use the service more and charging this back to the lower users. I think of it like squashing a balloon, where BT only ever talks about the squashed end.

Quote:
12. New installation connection fee increased from £75 to £125: Yeah, this increase is way over the top for sure. I know Openreach charge BT Retail the cost, so I assume they gave us a price and we added to it in order to cover our costs. But again thats an assumption.

I think that that's a fair price. There has been much discussion on MSE about this, as people have found that with new properties, someone must pay the installation fee. For the work that is involved, some installations will cost more, some less, I think that £125 is reasonable. Whether new estates where the builders have laid all cables require such a fee is another issue.

Quote:
But BT wont up prices given that we are losing customers due to us being more expensive.

This brings me on to another point. Surely it is accepted that BT will, on aggregate, loose customers. Expecting that that will not be the case is tantamount to saying that it should keep its significant market power (SMP). Equally so, the fact that it had a monopoly is nothing to do with the fact that it is 'all conquering'. It was a public utility, and as such it operates the majority of the telephone network.

As for BT being "more expensive", I that is subjective. For someone who wants caller display, a pretty basic service in today's world, they would have to pay even more to other providers. NTL even boasted that it was raising its line rental to bring it "in line" with its competitors. So it could obviously make ends meet at its old price but increased it just to make that bit extra profit. Hence I refer back to my example with the 'name brand' trainers. Why should I have to pay £x for a service I know costs less than this? With the trainers I have a choice, with telecommunications the choice aspect is a load of nonsense!
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darkstar
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Re: Ofcom Consultation: Deregulation of BT prices
Reply #50 - Jul 22nd, 2006 at 10:07pm
 
bbb_uk wrote on Jul 22nd, 2006 at 9:12am:
darkstar wrote on Jul 22nd, 2006 at 8:45am:
1.   Line rental on BT Together Option 1 from £10.50 to £11.00 per month: £11 is STILL operating at a loss, we are trying to drag back some of the money we are losing on this package. Basic laws of economics surely? If I ran a buisness I wouldnt want to sell by products at a loss....
If I remember correctly, Ofcom did an investigation into the costs involved for maintaining the copper wiring, etc and it was about £8/£9 (please someone correct me if I'm wrong  Wink ).
Quote:
3.   Minimum call charge from 5p to 5.5p (6p for business): again, welcome to inflation. BT has to pay people more (for example) and so has to find that money from somewhere. Or did you think they could charge the same price forever?
BT only have to pay other people for calls that may not end on their own network and given the number of customers on BT this is not likely to be high.  Look at the flip-side where the likes of TalkTalk, Primus, etc can still have lower minimum call charges but yet they pay more because all calls made from their network will end up on other teleco's like BT, Telewest/NTL, etc.

Quote:
7.   Introduction of £5 late payment charge: Well if people payed their bills it wouldnt be a problem. Wink But seriously, it costs just under that to follow up on 80% of the peopel who dont pay on time.
Some people maybe in financial trouble and have probs paying.  How can it cost £5 to follow up when its done automatically by your computers - the only cost is the paper/ink/envelope and the couple of seconds it takes someone to put it in an envelope.  £5 per account that is overdue based on the above sounds like BT are making money from those that do unfortunately pay late.


Anyway, I wanted to answer these points:

1) I am including the things that Bt (and any OLO) would have to take into account such as paying for its electricity, building ground rent, wages on staff, ect ect ect. Its all taken into account and for the basic line (if you use a CPS for example) this just doesnt cover those costs.

3) again I meant staff pay rises, they go up quicker than the BT prices. You can belive THAT (we have a pretty good union). Wink

7) Its not entirely automated, and many of these situations cost BT a fair wack to sort out as people ring up to sort out payment plans for late payers ect.


bbb_uk, no problem and thanks. I really shouldnt ahve responded, but Ive been a bad tempered SOB as of late. Smiley
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