Tough times ahead for mobile users

It’s getting increasing tough for UK mobile users. All the operators seem to be raising prices for out of bundle calls and now 3 has moved to per minute billing and brought in charges for non direct debit payments and itemised paper bills. Although I have a certain sympathy with providers charging for non direct debit payments and paper bills (understanding the economics here), these price rises all add to the pressure on consumers.

Ofcom also indicated this week they are open to the idea of consumers being charged to receive calls, as our friends in the USA and Canada do. This would allow termination charges to come down (the charges that mobile operators impose on other operators to carry their calls). So if we do start paying to receive calls, in theory we’ll pay less to make them. We’ll see … Anyway, the current pricing regime runs until 2011 so a lot can happen between now and then.

2 thoughts on “Tough times ahead for mobile users”

  1. Examination of the statistics shows that total cost of making a cellular call in US (Calling party cost + called party cost summed) is higher than the average in Europe where the Calling Party pays all cost. Also, human nature dictates that if the calling party is not absorbing the cost of the call, then more calls are going to be made – this is one reason that on average more cellular calls are made per user in the US than any other EU country!

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  2. However the US mobile market has historically lagged Europe & one of the reasons cited is the reluctance of people to pay to receive calls. Interesting times …

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