Comments on: Why do we pay for incoming calls? http://wirelessnorth.ca/2009/09/18/why-do-we-pay-for-incoming-calls/ Covering The Great Wireless North Thu, 11 Mar 2010 10:01:14 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Hub http://wirelessnorth.ca/2009/09/18/why-do-we-pay-for-incoming-calls/comment-page-1/#comment-1546 Hub Wed, 30 Sep 2009 02:18:56 +0000 http://wirelessnorth.ca/?p=682#comment-1546 The thing that people don't realize is that calling a cell phone from a land line in Europe is worse than a racket. The incoming call you have to pay here in North America you end paying less than in Europe.<br><br>The cell-phone provider will have more incentive to reduce that incoming cost for cell-phone owners (their customers) than in Europe for people who don't really have the choice of the tariff when calling somebody else cell-phone. The thing that people don't realize is that calling a cell phone from a land line in Europe is worse than a racket. The incoming call you have to pay here in North America you end paying less than in Europe.

The cell-phone provider will have more incentive to reduce that incoming cost for cell-phone owners (their customers) than in Europe for people who don't really have the choice of the tariff when calling somebody else cell-phone.

]]> By: CharlesT http://wirelessnorth.ca/2009/09/18/why-do-we-pay-for-incoming-calls/comment-page-1/#comment-1535 CharlesT Fri, 25 Sep 2009 12:04:44 +0000 http://wirelessnorth.ca/?p=682#comment-1535 A question about Jajah (and similar services):<br>If I'm not in my local calling area, dont I pay for the LD on the incoming side?<br>If that's the case (and I believe it is), then an alternate call-through service like JustDial.ca is more cost-effective when making LD calls from outside of one's local calling area. A question about Jajah (and similar services):
If I'm not in my local calling area, dont I pay for the LD on the incoming side?
If that's the case (and I believe it is), then an alternate call-through service like JustDial.ca is more cost-effective when making LD calls from outside of one's local calling area.

]]> By: CharlesT http://wirelessnorth.ca/2009/09/18/why-do-we-pay-for-incoming-calls/comment-page-1/#comment-1534 CharlesT Fri, 25 Sep 2009 11:57:45 +0000 http://wirelessnorth.ca/?p=682#comment-1534 In Europe POTS was traditionally managed by the country's PTT (Post Telephone and Telegraph) which was either a government ministry or the equivalent of a Crown Corporation. So for a call to cross carrier boundaries, it needed to cross borders, in which case the call was a long distance call. All carriers, including North American carriers, had (and still have) commercial agreements to compensate each other for the cost of carrying long distance calls not originated by one of their subscribers (including calls transiting through an intermediate carrier). And until deregulation allowed local POTS competition, all local calls were always terminated on the same carrier on which the call was originated. What some European countries had was the concept of "local measured service" i.e. local POTS calls were not free and Europeans payed a lot more for their phone service than North Americans. <br><br>The situation is reversed for wireless services: we, North Americans (and Canadians in particular) pay a whole lot more for wireless services than just about any place else in the developed world. Why? and why in particular are we charged for incoming calls? Because of weak competition. In my opinion, this weak competition is mostly enabled by the fact that cell phones are bundled with and locked to a given carrier. In Europe, cell phones are not locked to a given carrier; to change carrier, simply change the SIM card and keep your phone if you want to. In Canada, changing carriers means changing phones; if you want something else than a basic phone, you are faced with an up-front expense of a few hundred dollars and a 3-year contract (2-years in the US); if you try to buy the phone outright, you pay an inflated price for it since the carrier has a monopoly on the phones that work on his network AND you pay the same fee for the service!!! <br><br>Imagine how different the situation would be if you could buy (and sell) your phone independently of the local carrier! You could buy the phone YOU want and use the service provider YOU want with the level of service to meet YOUR needs. Unfortunately, this is unlikely to happen for as long as there are incompatible cell phone technologies such as CDMA and GSM. In Europe POTS was traditionally managed by the country's PTT (Post Telephone and Telegraph) which was either a government ministry or the equivalent of a Crown Corporation. So for a call to cross carrier boundaries, it needed to cross borders, in which case the call was a long distance call. All carriers, including North American carriers, had (and still have) commercial agreements to compensate each other for the cost of carrying long distance calls not originated by one of their subscribers (including calls transiting through an intermediate carrier). And until deregulation allowed local POTS competition, all local calls were always terminated on the same carrier on which the call was originated. What some European countries had was the concept of “local measured service” i.e. local POTS calls were not free and Europeans payed a lot more for their phone service than North Americans.

The situation is reversed for wireless services: we, North Americans (and Canadians in particular) pay a whole lot more for wireless services than just about any place else in the developed world. Why? and why in particular are we charged for incoming calls? Because of weak competition. In my opinion, this weak competition is mostly enabled by the fact that cell phones are bundled with and locked to a given carrier. In Europe, cell phones are not locked to a given carrier; to change carrier, simply change the SIM card and keep your phone if you want to. In Canada, changing carriers means changing phones; if you want something else than a basic phone, you are faced with an up-front expense of a few hundred dollars and a 3-year contract (2-years in the US); if you try to buy the phone outright, you pay an inflated price for it since the carrier has a monopoly on the phones that work on his network AND you pay the same fee for the service!!!

Imagine how different the situation would be if you could buy (and sell) your phone independently of the local carrier! You could buy the phone YOU want and use the service provider YOU want with the level of service to meet YOUR needs. Unfortunately, this is unlikely to happen for as long as there are incompatible cell phone technologies such as CDMA and GSM.

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