WIFI Numbers and Competition Laws

Nokia and most other mobile phones now work with SIP but in the UK it's basically impossible for small telecoms providers to offer SIP services on mobile phones due to some mobile providers un-willing to route the calls.

Ofcom have introduced WIFI ranges, starting 075.  They are the same as the mobile ranges used by mobile companies but the WIFI ranges are generally routed over the providers WIFI network. The price point on the BT network is FW8 which is a rebate of approximately 12p per minute to the small provider.

This works for the small provider as they get a 12p rebate from BT on inbound calls to their WIFI connected clients, very profitable if the client is connected to their WIFI network and just in profit if the call comes in to the small providers switches and out via a mobile network as transit to the customers mobile handset.  A 12p rebate per minute less the transit cost of approximately 7p per minute means still a nice profit for the small provider.

Some Mobile providers are blocking this by refusing to route the calls through their mobile networks, rendering the service useless as no one will take a service from a WIFI company where they get a mobile WIFI number but will not get calls from 50% of the mobile handsets in the UK as two or three mobile networks refuse to route the calls.

This is Where Competition Laws Need Changing

In the UK the competition laws don't help and really should change. There are arguably four big mobile providers all falling under the radar for being deemed a monopoly company but clearly these laws should be changed when dealing with Mobile and Telecoms providers. The reason is no one is going to take a service from a small telecoms company if one of the big four UK mobile providers refuse to route calls from their network, so the rules need to change and all Telecoms companies should be forced to connect calls if they have a  user base of 2% or more of the UK market.

Some mobile providers will argue the small companies have little infrastructure costs and no 3G licence costs, which is true, all the calls goes over the mobile providers network into BT, they are happy to route these calls to 01,02,03,0845,0871,09 and 070 personal numbers at whatever price point they are set at but not to the 075 fw8 mobile WIFI range. So their argument is a smoke screen, it's purely some mobile providers don't want small telecoms companies encrouching on their market place. This would be fine for them to take this view if they were small providers as market forces would sort this out but they are all in a dominant position and the Office of Fair Trading should look into this as it's a scandal.

If mobile companies were forced to connect the calls this would mean a massive explosion of mobile phone services  in the UK over WIFI. Then when more 3G licences come up for auction the mobile companies would bid sensible prices to get these licences taking into account the revenue they get for calls on their networks.

It has been reported that competition will change this but clearly that's never going to happen as mobile providers are petrified of small WIFI providers operating mobile phone services without paying for 3G licences in the UK and with only four big mobile providers in the UK there is no competition to make any mobile provider route the calls to 0755 fw8 ranges if they decide they don't want to.

Some providers like 3 Network have embraced SIP, their phones are enabled and they do route calls to 0755 fw8 WIFI ranges. The mobile companies are better to embrace new technology and changing market conditions or they just block innovation, in the long term WIFI will become the norm and mobile companies will be able to make a return allowing small telecoms companies to transit their network. Mobile companies need to look at this as an opportunity and not competition.

So if the OFT are not too busy a nice little job for you.

I can be contacted on 0203 390 9000 

While we are not able to route our 0755 mobile range we can however provide 070 personal numbers for companies or individuals wanting an 070 personal number for emergency out of hours calls. Please visit The Telephone Number Discount Warehouse