Few consumers know that mobile phone calls to 0800 “freephone” numbers cost up to 35p per minute until they receive their bill. No surprises then that mobile phone operators keep the details of their 0800 charges guarded deep within overwhelming legal contracts.
For a fee, BT supplies businesses with 0800 non-geographical numbers so they can provide a “freephone” service for consumers yet customers calling from mobile phones do not benefit from this convenience. A report from telecommunications regulator Ofcom said: “Consumers have an expectation that 080 calls will be free.” Yet BT has been in a decade old dispute with Orange, T-Mobile, Telefonica 02 and Vodafone about call charges to the 0800 numbers hosted by BT.
Mobile operators argue that high charges for 0800 calls cover the cost of “originating” 0800 numbers, converting non-geographical numbers to geographical ones, to 01 or 02 landline numbers. Mobile phone companies refer to origination as “retention”, another word for the same process, also referring to the expense of originating 0800 numbers as “retention cost”. Whilst mobile phone companies recover costs from mobile phone users, BT also subsidises the costs. The revenue mobile phone companies make from 0800 calls may look to the knowledgeable consumer to be in excess of retention costs, however, in an official Ofcom report, mobile phone companies “have not been able to confirm to BT their average retail costs for 080 calls” whilst maintaining that: “BT should pay for originating 080 calls and that this payment should be sufficient to cover their efficient costs of retention.”
The freephone feud between BT and mobile operators became a hot topic again recently. BT won an appeal to increase charges to mobile phone companies for 0800 numbers in August. BT approached the Competition Appeals Tribunal challenging a 2009 decision by Ofcom that BT should further subsidise retention costs. This latest verdict looks likely to benefit mobile phone users as BT will charge mobile phone companies for 0800 charges exceeding 8.5p per minute. This should encourage mobile phone companies to cap the cost of 0800 calls at this rate.
Orange and T-Mobile, now combined under the new name Everything Everywhere, have reduced their charges for 0800 numbers almost immediately. Orange and T-mobile reduced their prices for 0800 numbers to 7p per minute. Vodaphone are set to reduce their charges for 0800 numbers in October from 35p per minute to 7p per minute, although this will rise to 14p per minute in the New Year. Although this is a vast improvement remember that 0800 numbers are, at least by design, “freephone”.
BT also looks to be able to recoup £1.9 million in costs from mobile phone companies following this latest decision. This figure is not to be confused with the annual £1.9 billion revenue that mobile phone companies enjoy from users calling 0800 and other non-geographic numbers. It is ironic that mobile phone companies brought this penalty upon themselves by throwing the first punch in 2001.
Orange requested that BT pay more towards origination costs in what was termed “The Orange Direction”. Ofcom dismissed the request as BT was already subsidising retention for Orange and other mobile networks. Orange could not know the eventual repercussions of sparking this dispute which today sees them involved in what may become an 0800 price war between mobile companies.
A torrent of appeals from both BT and mobile phone companies followed The Orange Direction. During Ofcom’s ‘2006 Numbering Statement’ BT was given authority over 0800 charges and thus classified as a “dominant market leader”. It was decided that BT would have no requirements or legal conditions to meet regarding 0800 numbers, BT could “determine what price they wish to charge for their services”. Mobile phone companies soon accused BT of abusing its power. Ofcom still could not decide “whether or not BT has infringed competition law” and remained on the fence.
In an authoritarian move BT notified the industry it would no longer make origination payments from 2 September 2008. Mobile phone companies agreed in unison that: “Due to its dominant position in the market, BT has engaged in unfair, unreasonable & discriminatory charging.”
Vain attempts to satisfy both parties included a proposal from T-mobile that retention costs should be recovered in full from mobile phone users although this was eventually and thankfully dismissed.
A glimmer of customer care remains. Since the ‘2006 Numbering Statement’, 0808 80 numbers assigned to charities and some government organisations – including MI5 – remain free. It is small comfort to know that whilst being charged an estimated average of £1.70 for paying a water bill, mobile phone users can contact James Bond free of charge.
As awareness of largely hidden freephone charges grows, alternatives to the mobile companies’ "unjust and unfair" costs emerge. Websites such as 0800 Buster and Say No to 0870 convert 08 numbers into geographic numbers. Money Saving Expert assesses the 0800 Wizard app as "by far the easiest method" for smartphone users. Free to download to a Blackberry, Android or iPhone, the 0800 Wizard converts the 0800 number into a geographic 01 or 02 number and connects the user – all you have to do is dial the 0800 number through the app. When the geographic number is called from a mobile phone the cost of the call is covered by the inclusive minutes within any mobile phone contract. If using a Pay As You Go service, the call is charged at the standard network rate for a landline call.
The freephone feud has found mobile phone companies forfeiting £1.9 billion by reducing their non-geographical call rates and leaving us wondering how they will compensate for losing out on such a colossal sum each year. Perhaps customers will again be targeted and prices for other services will rise. As mobile phone charges are exposed, a consumer war is likely to commence and if so we will witness the full fury of mobile phone networks as they battle for customers.
Thursday, 8 September 2011
Friday, 29 July 2011
Apple retain their bite in technology’s juiciest market
The recent news that five ‘fake’ Apple stores were operating in China was a comical and rather intriguing news story. An American blogger noticed small details which weren’t quite right, the stores had dirty walls and unusual terms on the signage, yet the staff were convinced they worked for Steve Jobs. Though it may have initially alarmed Apple, they should feel assured at the discovery since it is testament to the power, extent and envious nature of their brand. After all, imitation is the sincerest form of flattery. This is a compliment that serves as solace indeed for the electronics manufacturer following the difficulties of the iPhone 4 White release. Ongoing ‘Coming Soon’ campaigns were out of character for a company that prides itself on its efficiency. The delay may have encouraged impatient consumers eager for the latest handsets to be picked up by other manufacturers who subsequently gained a larger portion of the smartphone market share. In the past year Android market share grew from 10.7 to 45.2 per cent with development with Motorola and more recently Samsung crucial to Android success. As well as Android, Blackberry’s market share rose to 22.3 per cent.
Apple have remained tight-lipped about the cause of the development problems but a common theory is ‘light leakage’, where the white case was allowing light into the camera resulting in the phone taking poor pictures. Apple wisely refused to release the phone for almost a year after its intended release date until they were completely satisfied that it was ready and would not be a negative impact on their reputation. After all, product recalls are expensive exercises. Apple were no doubt haunted by the negative publicity surrounding the iPhone 4 design fault resulting in weak signal if the phone was held ‘incorrectly’. On the other hand, many firms rushed to fill the gap too quickly, exposing themselves to major flaws in their products. The Blackberry Playbook was released before Flash could be integrated and last month Nokia announced the N9 running the Meego operating system – while at the same time announcing a partnership with the Windows Phone 7 platform. In the meantime Apple has kept a cool head, asking fans to have patience as they perfect their product. The advertising campaign for the White iPhone simply used the word: ‘Finally’, in typically restrained and minimalist Apple style.
The smartphone marketplace is becoming more crowded, even without a delayed Apple release. David Boston, UK Country Manager of IT & Electronic’s price comparison experts skinflint.co.uk said: “Shoppers have more choice than ever. The iPhone is by no means the only big player anymore, being joined at the high end of the market by heavy hitters like the HTC Sensation and the Samsung Galaxy S2.” The proliferation of smartphones is affecting prices as well as market share. Skinflint.co.uk’s Price History figures show that models of both the black and white 16GB iPhone 4 have dipped below £440. Phones running the Android Operating system in particular are making an increasingly crowded and continually evolving marketplace far more competitive.
The delayed iPhone 4 White release may have pushed back expectations for the release of Apple’s next flagship handset – the iPhone 5. That said, the high-end, cutting-edge smartphone market shows no signs of slowing down in its absence. The LG Optimus 3D was released on July 7th and is available for £422.99 whilst the HTC Sensation (with its portable cinema and sound system) is £420 according to Skinflint. The appetite for strong technology in a smartphone handset is ravenous, and there can be no question that as more users seek to upgrade to a smartphone more reasonably priced options will become increasingly desirable.
Apple may have seemed to lose a little face over the delay of the iPhone 4 White, but even if they push the iPhone 5 release back further, the level of consumer excitement will remain palpable. Apple is now the most valuable brand in the world, valued at $153 billion having overtaken Google this April. Since April, Apple have sold 20 million iPhones and recorded net profit 125 per cent higher than last year. The success of the iPad 2 has more than made up for declining iPod sales, which were down 20 per cent on last year.
The delay of the release of the iPhone 4 White was frustrating for consumers, but whether the delay is unfortunate for Apple is a more arguable question. Apple are remaining muted about the release of the iPhone 5 – allowing keen consumers to whet their appetites with slim rumours and speculation, generating the kind of fan fervour that enabled them to overtake Google as the world’s most valuable brand. Their market share may have slipped, but the iPhone 4 is selling strong – controlling 20 per cent of the smartphone market share through one product. This is no mean feat and it remains the world’s most popular Smartphone, with sales up 142 per cent on last year. The release of an Apple product is always a huge event, and part of that is Apple’s muted, unfussy approach to marketing. The iPhone 5 will be a great success, even if it never comes in white.
Apple have remained tight-lipped about the cause of the development problems but a common theory is ‘light leakage’, where the white case was allowing light into the camera resulting in the phone taking poor pictures. Apple wisely refused to release the phone for almost a year after its intended release date until they were completely satisfied that it was ready and would not be a negative impact on their reputation. After all, product recalls are expensive exercises. Apple were no doubt haunted by the negative publicity surrounding the iPhone 4 design fault resulting in weak signal if the phone was held ‘incorrectly’. On the other hand, many firms rushed to fill the gap too quickly, exposing themselves to major flaws in their products. The Blackberry Playbook was released before Flash could be integrated and last month Nokia announced the N9 running the Meego operating system – while at the same time announcing a partnership with the Windows Phone 7 platform. In the meantime Apple has kept a cool head, asking fans to have patience as they perfect their product. The advertising campaign for the White iPhone simply used the word: ‘Finally’, in typically restrained and minimalist Apple style.
The smartphone marketplace is becoming more crowded, even without a delayed Apple release. David Boston, UK Country Manager of IT & Electronic’s price comparison experts skinflint.co.uk said: “Shoppers have more choice than ever. The iPhone is by no means the only big player anymore, being joined at the high end of the market by heavy hitters like the HTC Sensation and the Samsung Galaxy S2.” The proliferation of smartphones is affecting prices as well as market share. Skinflint.co.uk’s Price History figures show that models of both the black and white 16GB iPhone 4 have dipped below £440. Phones running the Android Operating system in particular are making an increasingly crowded and continually evolving marketplace far more competitive.
The delayed iPhone 4 White release may have pushed back expectations for the release of Apple’s next flagship handset – the iPhone 5. That said, the high-end, cutting-edge smartphone market shows no signs of slowing down in its absence. The LG Optimus 3D was released on July 7th and is available for £422.99 whilst the HTC Sensation (with its portable cinema and sound system) is £420 according to Skinflint. The appetite for strong technology in a smartphone handset is ravenous, and there can be no question that as more users seek to upgrade to a smartphone more reasonably priced options will become increasingly desirable.
Apple may have seemed to lose a little face over the delay of the iPhone 4 White, but even if they push the iPhone 5 release back further, the level of consumer excitement will remain palpable. Apple is now the most valuable brand in the world, valued at $153 billion having overtaken Google this April. Since April, Apple have sold 20 million iPhones and recorded net profit 125 per cent higher than last year. The success of the iPad 2 has more than made up for declining iPod sales, which were down 20 per cent on last year.
The delay of the release of the iPhone 4 White was frustrating for consumers, but whether the delay is unfortunate for Apple is a more arguable question. Apple are remaining muted about the release of the iPhone 5 – allowing keen consumers to whet their appetites with slim rumours and speculation, generating the kind of fan fervour that enabled them to overtake Google as the world’s most valuable brand. Their market share may have slipped, but the iPhone 4 is selling strong – controlling 20 per cent of the smartphone market share through one product. This is no mean feat and it remains the world’s most popular Smartphone, with sales up 142 per cent on last year. The release of an Apple product is always a huge event, and part of that is Apple’s muted, unfussy approach to marketing. The iPhone 5 will be a great success, even if it never comes in white.
Friday, 17 June 2011
Africa Befriends Facebook through New Mobile Phone Technology
Internet access has become something we take for granted in the developed world. The majority of people are now permanently connected to the Internet, almost as though an imaginary umbilical cord exists between them and their mobile phone or laptop. For many, the thought of being cut-off from the online world for more than a few hours can cause great anxiety and distress. Being unable to access one’s email or see what a friend has commented on your Facebook status can be simply unbearable.
Maybe we should spare a thought then for the millions of people in African nations who have little or no access to the Internet. Due to a severe lack of fixed telephone lines, the high cost of smartphones and data connections, the possibilities to take part in the global networking phenomenon have been greatly restricted. Only one in twenty people on the continent have access to Facebook, the world’s most popular social network.
With now over 500 million users worldwide, Facebook has certainly made its mark since launching in 2004. The social networking site has become an integral part of modern-day social life and has enabled countless numbers of people to reunite with friends and loved ones with whom they had lost touch. Facebook has created an unparalleled networking platform that brings people together from all over the globe and helps to sustain relationships.
It is no wonder then that the people of Africa are desperate to get involved. The problem though is how a continent that is lacking in sufficient fixed telephone lines keeps up with the rapidly developing online social networking tools and messaging services. According to a report by Mobile Monday, there are now over 500 million mobile phone subscribers in Africa, which far outstrips the 46 million fixed telephone line subscribers across the whole of Africa and the Arab States. It is understandable therefore that ForgetMeNot Africa looked to mobile phones to bring social networking to Africa.
ForgetMeNot Africa’s Message Optimiser technology enables customers to access Facebook, email and online chat via any SMS-enabled mobile phone, without the need for internet access. Since it launched in September 2009, this innovative technology has enabled 47.5 million people in Africa access to the world’s most popular social network.
Language barriers have now also been broken as the application has been translated into French. Warid Congo’s WaridMessenger service, launched in November 2010, has already made Facebook available to over 450,000 French speaking Africans in the Republic of Congo, setting a precedent for other Franco African operators to follow suit.
Considering the African people’s enthusiasm to connect with the rest of the world, it is incredibly pleasing to see ForgetMeNot Africa’s technology breaking through the conventional methods used to access online chat, email and social networking sites. Furthermore, significantly improving ease of communication between Africa and the rest of the world opens up a wealth of new opportunities and has the potential to bring about immeasurable positive social and economic change.
Maybe we should spare a thought then for the millions of people in African nations who have little or no access to the Internet. Due to a severe lack of fixed telephone lines, the high cost of smartphones and data connections, the possibilities to take part in the global networking phenomenon have been greatly restricted. Only one in twenty people on the continent have access to Facebook, the world’s most popular social network.
With now over 500 million users worldwide, Facebook has certainly made its mark since launching in 2004. The social networking site has become an integral part of modern-day social life and has enabled countless numbers of people to reunite with friends and loved ones with whom they had lost touch. Facebook has created an unparalleled networking platform that brings people together from all over the globe and helps to sustain relationships.
It is no wonder then that the people of Africa are desperate to get involved. The problem though is how a continent that is lacking in sufficient fixed telephone lines keeps up with the rapidly developing online social networking tools and messaging services. According to a report by Mobile Monday, there are now over 500 million mobile phone subscribers in Africa, which far outstrips the 46 million fixed telephone line subscribers across the whole of Africa and the Arab States. It is understandable therefore that ForgetMeNot Africa looked to mobile phones to bring social networking to Africa.
ForgetMeNot Africa’s Message Optimiser technology enables customers to access Facebook, email and online chat via any SMS-enabled mobile phone, without the need for internet access. Since it launched in September 2009, this innovative technology has enabled 47.5 million people in Africa access to the world’s most popular social network.
Language barriers have now also been broken as the application has been translated into French. Warid Congo’s WaridMessenger service, launched in November 2010, has already made Facebook available to over 450,000 French speaking Africans in the Republic of Congo, setting a precedent for other Franco African operators to follow suit.
Considering the African people’s enthusiasm to connect with the rest of the world, it is incredibly pleasing to see ForgetMeNot Africa’s technology breaking through the conventional methods used to access online chat, email and social networking sites. Furthermore, significantly improving ease of communication between Africa and the rest of the world opens up a wealth of new opportunities and has the potential to bring about immeasurable positive social and economic change.
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