Cable Forum - View Single Post - Per minute calls, very expensive and here's why.

wtaylor82 · 12-04-2007, 21:49

As a Billing Employee of a telecommunications company - no not virgin media/ntl. I can tell you per minute billing is going to be a process that is going to be put in line to increase profit margins.

There is really two elements here a setup fee i.e. replaces min call charge i.e. 5.4p but always remains i.e. 3p or 2.555554 exc vat

If we take for example someone who is on a 3-2-1 plan i.e. 3 pence per minute for a daytime call lasting 4 minutes and 12 secs

With per minute rounding. This call would cost (5x0.03)+0.03=0.18p. This calculation is based on the following 5 minutes rounded from 4 minutes and 12 secs multiplied by the unit charge 0.03 adding the setup fee.

Per second billing. This call would cost ((0.03/60)*252)=0.126p. This calculation is based on unit charge i.e. 3p divided by the number of seconds in a minute 60, multiplied by the number of seconds that is 4 minutes and 12 secs e.g. 252. Thus giving a total of 0.126p

This gives the company a profit of 5.4p.

Oh - did you know an average call length. check is out and see how much mor its going to cost you on your talk plan.

Good isn't it, :-(

Whats even better for these companies is they can get away with saying ok we will change the rate to 2p per minute. Fair enough but they are still in pocket.

12-04-2007, 21:49	#9
wtaylor82 Inactive Join Date: Mar 2007 Posts: 88	Re: Per minute calls, very expensive and here's why. As a Billing Employee of a telecommunications company - no not virgin media/ntl. I can tell you per minute billing is going to be a process that is going to be put in line to increase profit margins. There is really two elements here a setup fee i.e. replaces min call charge i.e. 5.4p but always remains i.e. 3p or 2.555554 exc vat If we take for example someone who is on a 3-2-1 plan i.e. 3 pence per minute for a daytime call lasting 4 minutes and 12 secs With per minute rounding. This call would cost (5x0.03)+0.03=0.18p. This calculation is based on the following 5 minutes rounded from 4 minutes and 12 secs multiplied by the unit charge 0.03 adding the setup fee. Per second billing. This call would cost ((0.03/60)*252)=0.126p. This calculation is based on unit charge i.e. 3p divided by the number of seconds in a minute 60, multiplied by the number of seconds that is 4 minutes and 12 secs e.g. 252. Thus giving a total of 0.126p This gives the company a profit of 5.4p. Oh - did you know an average call length. check is out and see how much mor its going to cost you on your talk plan. Good isn't it, :-( Whats even better for these companies is they can get away with saying ok we will change the rate to 2p per minute. Fair enough but they are still in pocket.