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Paying more to Optus

On the face of it Optus's change in how it applies its charges for timed calls from fixed home phones is of little consequence. Indeed, any Optus customer with a niggling doubt might find comfort in Optus's assurance that the changes "will make it easier for our customers to understand their fixed telephony plan".

From July 18 Optus has moved its charging from per second to per 30 seconds for national (STD) calls, what it calls community calls, and calls from home phones to mobiles. International calls moved from per second to per 60 seconds.

Optus has retained the same rate, as in 40 cents per 30 seconds for some calls, but instead of applying that rate at 1.3 cents per second it is rounding up all timed calls to the next 30-second increment to incur the full 30-second charge. This means that 29 in 30 timed calls will cost more, and in the case of international calls that is 59 in 60 calls.

What makes this especially lucrative for Optus is that a substantial and increasing proportion of calls are less than 30 seconds long, thanks to the phone companies' passion for flagfall-claiming voicemail and answering services. If you labour over a pencil and paper, as I have, you'll see that Optus has doubled the number of seconds that are charged in these calls of less than 30 seconds.

As well, there's an increased bonus in these machine-answered calls, and all others, because Optus has increased flagfall from 35 cents to 45 cents. Now a person hanging up on a machine-answered call will pay for 30 seconds instead of, say, three seconds. In such a call the cost increases from 39 cents to 85 cents!

In my column in The Herald today I make the point that young people especially tend not to consider the charging rate for calls when they enter contracts with what sound like generous allowances of so-called free calls each month. Pay $100 a month and get $200 worth of free calls! The $200 worth of calls might not be worth much at all in the way of calls, but that's something most people would not find out until they'd signed up.

In its letter telling customers of the new charging system Optus even assures them that "the included call value" on their plan remains unchanged! Unchanged even though calls cost substantially more and will exhaust the call allowance sooner!

Optus, by the way, is not the only phone company to move from per-second charging to 30-second and 60-second blocks - Telstra did much the same early last year.

Despite the carefully worded letter of disclosure, I see the change as increasing prices by stealth, as Optus taking its customers for suckers. So many of us are indeed suckers in the face of the phone industry's marketing that I believe transparency will be increasingly smothered by complexity so deliberate it amounts to obfuscation. Has that been your experience?

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ahhh..... Shirlock Corbett has detected a sneaky service provider move. good work. but what can you do? haggle for a better price? doesn't work like that. so much for the opening up of the market to increase competition and provide better service. you have telstra and optus and then some minor players and they all seem more intent on making a profit than providing a service. they are up there with banks for being confusing in their billing.
Posted by judgedredd, 27/07/2010 9:20:01 AM, on The Herald
Any business is out there to make money, and they will find the best way to make it. And if that means being a bit sneaky..... so be it. You can safely bet that the CEO that endorsed these changes/price rises is going to get a really nice fat bonus for it. We just changed our phones, one landline and two mobiles to Southern. And so far so good. We are saving about $100 a month so far. The only problem I have so far is I don't understand the layout of the bill, but then I never seem to understand a phone company's bill. I've been with both Telstra and Optus, and try as I might I have never ever understood the bill, even after getting them to explain it to me.
Posted by leahkf, 27/07/2010 10:00:21 AM, on The Herald
I, too, have difficulty understanding the detail of our phone bills, Leah. I used to question why it was so complex, but that was silly of me.
Posted by Jeff Corbett on 27/07/2010 10:02:51 AM
The responses from either Government, price regulator or Telecommunications Ombudsman are not exactly vociferous in condemming this overseas Government venture, but there again there is a "baby kissing, pick me, pick me" election going on. Good timing Optus.
Posted by MizJasper, 27/07/2010 10:09:53 AM, on The Herald
This would affect businesses more than the home phone market. I only have a home phone because the internet needs to connect through it. Calls are either made from my mobile which is Vodafone (who i can't say a bad thing about) or if i am calling family out of the area on their phone, i use Skype. So much cheaper than the standard telephone
Posted by Nafe, 27/07/2010 10:17:05 AM, on The Herald
My mobile is on a corporate plan that is negotiated by a shrewd, hard fellow - I have no doubt that it offers good value. My wife's mobile is on a legacy plan dating back to 1999, and Optus have made 2.3 million attempts to drag her onto some convoluted modern plan that is a clear rip-off. No thanks, we quite like the monthly mobile bill of $20 to $30 and the billing is clear & consistent. It's worth buying replacement handsets outright every few years just to keep that plan active - for some reason neither of us have much interest in watching Foxtel on the mobile, or engaging in the compulsive social masturbation that so frequently comes with iPhone ownership.
Posted by Scott Hillard, 27/07/2010 10:27:37 AM, on The Herald
smoke and blankets are ...try that
Posted by sid, 27/07/2010 10:46:43 AM, on The Herald
I think there are some business's that claim to have a legitimate right to fixed percentages of our disposable ( and non -descretionary) income. They assert that right with whatever means are at their disposal. Its called a profit producing measure and we employ countermeasures -to which they employ counter-counter measures. The MAD magazine "spy vs Spy' comes to mind?
Posted by bank fees, 27/07/2010 11:21:44 AM, on The Herald
@sid, hey apple invented tin cans and taut string which superseeded smoke and blankets years ago. get real and change your provider! You pay more but it saves paper and pencils?
Posted by wearethefarqaee, 27/07/2010 11:25:15 AM, on The Herald
I'll try it again...smoke and blankets is the cheapest... try that.! Optus/Telcom and the rest are only interested in gouging into your pocket The service is ordinary at best. The problem is not enough people in Australia to generate a big enough profit, the telcos are always going to hit you up...such is life. It is cheap where I am though.
Posted by sid, 27/07/2010 11:35:35 AM, on The Herald
apple?...who is apple?
Posted by sid, 27/07/2010 11:40:09 AM, on The Herald
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Jeff Corbett
Bend the online ear of the Hunter's most provocative columnist.

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