How much are you paying for "local" calls

Cerberus

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I thought this was just an interesting read :) and you guys might enjoy it:
http://mymoney.iafrica.com/finfitness/308939.htm

Are you paying long distance for local?
Nigel Benetton
Posted Thu, 11 Mar 2004

"If you were asked what a local call would cost in your area, would you assume it was the 'local rate'? Most people would. Nigel Benneton, editor of Insurance and Investment Times, asked various business people, those in management, friends and even the man-in-the-street. And without exception that is what they all thought. But he discovered that they were all wrong. Here is what his research revealed.

Telkom bases its charges only on distance these days, meaning some 'local' calls are charged at long distance rates. So dialling a local number (without the area code) does not necessarily mean you are paying a local rate. As to be expected there is a huge difference: below 50km distance you currently pay 38 cents a minute; above that you pay 99 cents, both including VAT. After seven in the evening and at weekends you 'enjoy' the callmore rates at 15.2 cents and 49.5 cents a minute respectively. Note that, aside from this, all calls have a minimum charge of 56.3 cents (0-50km) and 99 cents (>50km), regardless of the actual time of call, or its duration.

Consumers unwittingly paying more
Hundreds of thousands of consumers are unwittingly paying more than they thought for some of the calls they are making. We complained to Telkom about this. Both the first and second consumer clerks reiterated the tariff book, and simply explained how the charges worked. One thing they could not explain was how a consumer was supposed to work out the distance from their phone to a given destination.

"Was it, say, the distance by car between the two phones, or was it 'as the crow flies?'" I asked. "Well, if you are going to be sarcastic about it, I can't really help you," was her response. When I explained there was nothing wrong with the phrase 'as the crow flies' that it was in common usage in the English language to describe a straight line, she tittered.

I was phoning her from Claremont to Bellville (both in the 021 code area). When I asked, how far that was, her first answer was ‘a bit over 50kms', and to save me costs she kindly offered to call me back. When I asked her how she worked that out, she wasn't sure, checked with her boss and then came back, and said it was actually about 30kms, so it was a 'local call'.

It was interesting she used the phrase 'local', a habit with which most of us have grown up, assuming local meant local. It was time to argue further, so I was passed on to the supervisor of account enquiries.

How is distance worked out?
"We no longer charge on the basis of ‘long distance'," he explained, but 'National 0-50km' or 'National >50km', for calls within South Africa." However, an advertisement from Telkom as recently as October 2003 listed sample calls costing 99c a minute, all described as "long distance'. The manager could not find such a document in his batch of sample advertisements.

He was also unable to explain how the distance was worked out. It seems it is a combination of straight-line distance, adjusted for factors such as the number of exchanges through which a call is routed, and I dare say, failing that, how far it was to travel between the points by car.

"If I was a consumer, my hair would also stand on end"
The rates are levied in terms of policymakers within Telkom, he added, "which I have to abide by, and try to explain to customers. I have to accept what they dictate; but I guess if I was a consumer out there, my hair would also stand on end."

Evidently there are no maps available to telephone users to show where the exchanges are. The upshot is that people will have to guess. Telkom actually advises the following procedure: "Make the calls you usually make, ask for itemised billing (which is free) and then when the bill comes check through the whole list. This will show you which ‘local' calls if any are charged at long distance rates."

Another option is for users to find out what a given call rate would be for any destination in South Africa (and worldwide, for that matter) by going to www.telkom.co.za, which is tediously slow, and you have to do it for each telephone number you dial. This, I have to say is also impractical.

The only answer is for enough people to complain. You should get a 'Call Detail Report' (itemised billing) every month, and if you find any 'local' calls being rated long distance, help the consumer by complaining to Telkom. Direct these to Pretoria where Telkom's policymakers live. The number is 0800 600 126 — and it's a free call!"


Regards
Cerberus
 
This is the problem that occurs when there is only one operator. They can basically do what the hell they like and the consumer swallows the pill.

If one looks at deregulated markets one finds that the telco operators josstle for consumer mindset by offering a number of "free" services in their subscriptions, such as free local calls. I am not sure of specifics (mabey Jerrick could give us North American examples) but I do know of telco's in NY offering free local calls to the greater New York metropol...
 
Local calling is considered a service bundled with the line rental. All local calls made in North America are therefore "free" (I'm putting it in quotes because you pay for the line rental).

In North America, local calls are defined as calls that can be completed by a class 5 switch. When you pick up the telephone, a class 5 switch talks to your phone. When you dial the number, the switch looks it up against a small database to see how it needs to route it. If it can route it to another class 5 switch, which will route it to the telephone, it is considered local.

For example, the area code 416 is Toronto. Because there isn't enough numbers, a new area code was issued. Instead of an area code split, which is the old way of doing things, this new area code, 647, is an overlay code. Meaning, it covers the exact same geographic area as 416. When you sign up for a line, you can get either 647 or 416. All calls made from 416 to 416 are local, as well as 416 to 647, 647 to 416, and 647 to 647.


A long distance call is defined as a call that need a class 4 switch in order to be completed. You request a class 4 switch by dialing a "1" before your number.


Some examples:


Dialing from Toronto to Toronto, from 416-331-1234 to 416-335-1234, you just dial "4163351234". It is considered local.


Dialing from Georgetown to Mississauga, from 905-873-1234 to 905-286-1234, you dial "19052851234". It is considered long distance. If you don't dial the "1" you will hear a recording "This is a long distance call. Please check your number, and try again." (The class 5 switch tells you that it can't possibly complete the call as dialled.)

If you dialled "14163351234" in the first example, the class 4 switch will come with a recording, "The number cannot be completed as dialled. Please check the number, and try again."


There is no way for us to know when a number is long distance or local by just looking at the number. For example, Saskatchewan has one area code, but lots of localities. You learn over time what is long distance and what isn't.


Rest assured, a class 4 switch CANNOT complete a local call, and a class 5 switch CANNOT complete a long distance call. Therefore, you don't have to fear calling a local call and accidently dialling a "1" before the number.


You only get charged for calls made through a class 4 switch. That is, you only pay for long distance calls, calls that start with a 1. (Except of course, 1-800 numbers.)

<font color="blue"><b>The clock is ticking................... <i>1,174 kb/s</i> - I brake for no one</b></font id="blue">
http://home.cogeco.ca/~johannj/net_stuff/cogeco.jpg
 
The above example seems to be a very safe system.

Naturally, because callers cannot make mistakes and therefore get overcharged, Telkom will never implement such a system.
 
more like e.g. living in SA

<hr noshade size="1">
"Since light travels faster than sound, people appear bright until you hear them speak."

NetLink Research
 
That's an excellent article, nice one!!

If anyone would be as kind as to sponsor
1) A tow rope (at least 5m)
2) A bottle of Klippies premium
3) Locations of every Hellkom exchange box
4) A get-out-of-jail-free card (not essential)

please let me know...!

<u>_________________________________________________</u>
Just imagine where SA would be now if it weren't for Telkom
 
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by Cerberus</i>
<br />How is distance worked out?
...
He was also unable to explain how the distance was worked out. It seems it is a combination of straight-line distance, adjusted for factors such as the number of exchanges through which a call is routed, and I dare say, failing that, how far it was to travel between the points by car.
<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

The distance is no doubt the distance between originating and terminating exchanges. The Telkom Tariffs Quotation System http://www.telkom.co.za/downloads/tariffs/TarifSetup.exe can calculate that. From cursory examination it appears that the given distance is more or less as the crow flies, since the distance between two exchanges that I know are at least a 55km drive apart shows as 41km. Leased lines (Diginet Plus) also have a price component that is a function of distance between exchanges.

Not that I condone Telkom's voice pricing, but the debate about fixed line call costs really pales in comparison with mobile call charges: at one stage it was cheaper (for me, on my price plan) to phone mobile to Telkom than mobile to mobile on the same network!
 
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